What are the limits on taxation according to the Arizona Constitution?

The correct understanding of the limits on taxation according to the Arizona Constitution is found in the stipulation regarding property taxes. Specifically, Arizona law imposes a limit on property taxes that restricts the rate to a certain percentage of assessed value, which helps to safeguard homeowners and ensure that property tax increases are manageable and predictable. This limit is designed to prevent excessive taxation that could otherwise create financial strain on property owners and promote fairness within the system.

In contrast, the other options present limitations that do not align with Arizona's constitutional provisions. For example, there isn't a constitutional maximum for sales taxes set at 5%, nor is there a specific cap of 20% on income tax rates outlined in the state constitution. Additionally, while corporate taxes are subject to regulation, the Arizona Constitution does not specify a fixed cap at 15%.