What authority do incorporated towns in Arizona have regarding local improvements?

Incorporated towns in Arizona possess the authority to levy special assessments to fund local improvements. This means that these towns can collect fees from property owners for specific projects or services that enhance the community, such as infrastructure development, road repairs, or utility improvements. Special assessments are generally tied to the benefits received by the property from these projects, allowing towns to finance local enhancements effectively. This capability is crucial for the maintenance and improvement of public services, as it provides a direct financial mechanism for addressing community needs.

The other options do not accurately represent the specific authority granted to incorporated towns regarding local improvements. While incorporated towns can regulate businesses and enforce zoning laws, these functions do not directly pertain to improvements funded through special assessments. Additionally, although towns have various revenue sources, the ability to levy taxes is not universally applicable in the context of local improvements as it is often subject to different regulations and limitations.