REFERENCE TITLE: property tax levy; calculation; federal monies

State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022

SB 1274

Introduced by Senator Leach

 

AN ACT

 

Providing for a primary property tax reduction for tax years 2022 and 2023.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1. County, city or town; primary property tax levy for tax years 2022 and 2023; delayed repeal; definition

A. For tax year 2022, if a county's, city's or town's proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the county, city or town in the 2021 tax year in the county, city or town and the county, city or town received monies under section 603 of the American rescue plan act of 2021 (P.L. 117-2; 135 Stat. 4), the county, city or town shall use the monies received under section 603 of the American rescue plan act of 2021 to reduce the proposed primary property tax levy so that the property tax levy does not exceed the 2021 tax year's amount except for amounts attributable to new construction.

B. For tax year 2023, if a county's, city's or town's proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount that would have been levied by the county, city or town in the 2022 tax year in the county, city or town if the county, city or town had not reduced the levy pursuant to subsection A of this section and the county, city or town received monies under section 603 of the American rescue plan act of 2021 (P.L. 117-2; 135 Stat. 4), the county, city or town shall use the monies received under section 603 of the American rescue plan act of 2021 to reduce the proposed primary property tax levy so that the property tax levy does not exceed the amount that would have been levied by the county, city or town in the 2022 tax year if the county, city or town had not reduced the levy pursuant to subsection A of this section except for amounts attributable to new construction.

C. At the end of each tax year, the county, city or town may spend any monies the county, city or town received under section 603 of the American rescue plan act of 2021 (P.L. 117-2; 135 Stat. 4) that exceed the amount needed to reduce the primary property tax levy pursuant to this section for that tax year at the county's, city's or town's discretion.

D. For tax year 2024, the county, city or town may disregard any monies the county, city or town received under section 603 of the American rescue plan act of 2021 (P.L. 117-2; 135 Stat. 4) and calculate the primary property tax levy for the tax year as if those monies were not included to reduce the primary property tax levy for the preceding two tax years.

E. The property tax oversight commission shall review the primary property tax levy calculation under this section for each county, city and town to determine if there is a violation of this section.

F. This section is repealed from and after December 31, 2026.

G. For the purposes of this section, "amount attributable to new construction" means the net assessed valuation of property added to the tax roll since the previous year multiplied by a property tax rate computed by dividing the primary property tax levy of the county, city or town in the preceding year by the estimate of the total net assessed valuation of the county, city or town for the current year, excluding the net assessed valuation attributable to new construction.

Sec. 2. Retroactivity

This act applies retroactively to from and after December 31, 2021.

Sec. 3. Short title

This act may be cited as the "Local Tax Cut Act of 2021".