Bill Text: AZ SCR1018 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Property tax valuation limits
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2011-01-26 - Referred to Senate FIN Committee [SCR1018 Detail]
Download: Arizona-2011-SCR1018-Introduced.html
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REFERENCE TITLE: property tax valuation limits |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SCR 1018 |
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Introduced by Senators Pierce S, Allen, Bundgaard, Pearce R; Representative Burges: Senator Biggs
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A CONCURRENT RESOLUTION
Proposing an amendment to the Constitution of Arizona; amending article IX, sections 8, 8.1, 18 and 19, Constitution of Arizona; relating to property taxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
1. Article IX, sections 8, 8.1, 18 and 19, Constitution of Arizona, are proposed to be amended as follows if approved by the voters and on proclamation of the Governor:
8. Local debt limits; assent of taxpayers
Section 8. (1) No county, city, town, school district, or other municipal corporation shall for any purpose become indebted in any manner to an amount exceeding six per centum cent of the taxable property in such county, city, town, school district, or other municipal corporation, without the assent of a majority of the property taxpayers, who must also in all respects be qualified electors, therein voting at an election provided by law to be held for that purpose, the value of the taxable property therein to be ascertained by the last assessment for state and county purposes, previous to incurring such indebtedness; except, that in incorporated cities and towns assessments shall be taken from the last assessment for city or town purposes; provided, that under no circumstances shall any county or school district become indebted to an amount exceeding fifteen per centum cent of such taxable property, as shown by the last assessment roll thereof; and provided further, that any incorporated city or town, with such assent, may be allowed to become indebted to a larger amount, but not exceeding twenty per centum cent additional, for supplying such city or town with water, artificial light, or sewers, when the works for supplying such water, light, or sewers are or shall be owned and controlled by the municipality, and for the acquisition and development by the incorporated city or town of land or interests therein for open space preserves, parks, playgrounds and recreational facilities, public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities.
(2) The provisions of section 18, subsections (3), (4), and (5) and (6) of this article shall not apply to this section.
8.1. Unified school district debt limit
Section 8.1. (1) Notwithstanding the provisions of section 8 of this article, a unified school district may become indebted to an amount not exceeding thirty per cent of the taxable property of the school district, as shown by the last assessment roll thereof. For purposes of this section, a unified school district is a single school district which provides education to the area within the district for grades kindergarten through twelve and which area is not subject to taxation by any other common or high school district.
(2) The provisions of section 18, subsections (3), (4), and (5) and (6) of this article shall not apply to this section.
18.||Residential ad valorem tax limits; limit on increase in values; definitions
Section 18. (1) The maximum amount of ad valorem taxes that may be collected from residential property in any tax year shall not exceed one per cent of the property's full cash value as limited by this section.
(2) The limitation provided in subsection (1) does not apply to:
(a) ad valorem taxes or special assessments levied to pay the principal of and interest and redemption charges on bonded indebtedness or other lawful long‑term obligations issued or incurred before January 1, 2013 for a specific purpose.
(b) Ad valorem taxes or assessments levied by or for property improvement assessment districts, improvement districts and other special purpose districts other than counties, cities, towns, school districts and community college districts.
(c) Ad valorem taxes levied pursuant to an election to exceed a budget, expenditure or tax limitation.
(3) Except as otherwise provided by subsections (5), and (6), and (7) of this section the value of real property and improvements and the value of mobile homes used for all ad valorem taxes except those specified in subsection (2) shall be the lesser of the full cash value of the property or an amount ten five per cent greater than the value of property determined pursuant to this subsection for the prior year or an amount equal to the value of property determined pursuant to this subsection for the prior year plus one‑fourth of the difference between such value and the full cash value of the property for current tax year, whichever is greater.
(4) The legislature shall by law provide a method of determining the value, subject to the provisions of subsection (3), of new property.
(5) The limitation on increases in the value of property prescribed in subsection (3) does not apply to equalization orders that the legislature specifically exempts by law from such limitation.
(6) Subsection (3) does not apply to:
(a) Property used in the business of patented or unpatented producing mines and the mills and the smelters operated in connection with the mines.
(b) Producing oil, gas and geothermal interests.
(c) Real property, improvements thereto and personal property used thereon used in the operation of telephone, telegraph, gas, water and electric utility companies.
(d) Aircraft that is regularly scheduled and operated by an airline company for the primary purpose of carrying persons or property for hire in interstate, intrastate or international transportation.
(e) Standing timber.
(f) Property used in the operation of pipelines.
(g) Personal property regardless of use except mobile homes.
(7) (6) A resident of this state who is sixty-five years of age or older may apply to the county assessor for a property valuation protection option on the person's primary residence, including not more than ten acres of undeveloped appurtenant land. To be eligible for the property valuation protection option, the resident shall make application and furnish documentation required by the assessor on or before September 1. If the resident fails to file the application on or before September 1, the assessor shall process the application for the subsequent year. If the resident files an application with the assessor on or before September 1, the assessor shall notify the resident whether the application is accepted or denied on or before December 1. The resident may apply for a property valuation protection option after residing in the primary residence for two years. If one person owns the property, the person's total income from all sources including nontaxable income shall not exceed four hundred per cent of the supplemental security income benefit rate established by section 1611(b)(1) of the social security act. If the property is owned by two or more persons, including a husband and wife, at least one of the owners must be sixty‑five years of age or older and the owners' combined total income from all sources including nontaxable income shall not exceed five hundred per cent of the supplemental security income benefit rate established by section 1611(b)(1) of the social security act. The assessor shall review the owner's income qualifications on a triennial basis and shall use the owner's average total income during the previous three years for the review. If the county assessor approves a property valuation protection option, the value of the primary residence shall remain fixed at the full cash value in effect during the year the property valuation protection option is filed and as long as the owner remains eligible. To remain eligible, the county assessor shall require a qualifying resident to reapply for the property valuation protection option every three years and shall send a notice of reapplication to qualifying residents six months before the three year reapplication requirement. If title to the property is conveyed to any person who does not qualify for the property valuation protection option, the property valuation protection option terminates, and the property shall revert to its current full cash value.
(8) (7) The legislature shall provide by law a system of property taxation consistent with the provisions of this section.
(9) (8) For the purposes of this section:
(a) "Owner" means the owner of record of the property and includes a person who owns the majority beneficial interest of a living trust.
(b) "Primary residence" means all owner occupied real property and improvements to that real property in this state that is a single family home, condominium, or townhouse or an owner occupied mobile home and that is used for residential purposes.
19. Limitation on annual increases in local ad valorem tax levies; exception
Section 19. (1) The maximum amount of ad valorem taxes levied by any county, city, town or community college district shall not exceed an amount two per cent greater than the amount levied in the preceding year.
(2) The limitation prescribed by subsection (1) does not apply to:
(a) ad valorem taxes or special assessments levied to pay the principal of and the interest and redemption charges on bonded indebtedness or other lawful long-term obligations issued or incurred before January 1, 2013 for a specific purpose.
(b) Ad valorem taxes or assessments levied by or for property improvement assessment districts, improvement districts and other special purpose districts other than counties, cities, towns and community college districts.
(c) Ad valorem taxes levied by counties for support of school districts.
(3) This section applies to all tax years beginning after December 31, 1981.
(4) The limitation prescribed by subsection (1) shall be increased each year to the maximum permissible limit, whether or not the political subdivision actually levies ad valorem taxes to such amounts, except that beginning in 2007 the limitation prescribed by subsection (1) shall be computed from the actual tax levy of the county, city, town or community college district in 2005.
(5) The voters, in the manner prescribed by law, may elect to allow ad valorem taxation in excess of the limitation prescribed by this section.
(6) The limitation prescribed by subsection (1) of this section shall be increased by the amount of ad valorem taxes levied against property not subject to taxation in the prior year and shall be decreased by the amount of ad valorem taxes levied against property subject to taxation in the prior year and not subject to taxation in the current year. Such amounts of ad valorem taxes shall be computed using the rate applied to property not subject to this subsection.
(7) The legislature shall provide by law for the implementation of this section.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.
