|
|
ARIZONA STATE SENATE
RESEARCH STAFF
|
DALLAS G. GOLD LEGISLATIVE
INTERN DENISSE GEE LEGISLATIVE
RESEARCH ANALYST FINANCE COMMITTEE Telephone: (602) 542-3171 Facsimile: (602) 542-7833 |
FINANCE COMMITTEE
DATE: February 22, 2001
SUBJECT: Strike Everything
Amendment to S.C.R. 1001 (property tax inflation limit)
Purpose
Codifies in the Arizona Constitution that the Legislature establish laws requiring a public notice and hearing regarding any proposed increase in the primary property taxes greater than the base limit of the preceding taxable year. Requires that an increase in various primary property taxes be approved by the qualified voters of a taxing jurisdiction.
Background
S.C.R. 1001 requires, through a Constitutional amendment, the Legislature to statutorily provide a notice and public hearing requirement if a community college district, school district, city, town or county proposes various primary property tax levies at a rate greater than the previous year and requires the proposed tax increase to be approved by qualified electors at an election in the appropriate taxing jurisdiction.
The concept of truth in taxation for property taxes was originally enacted by Laws 1996, Seventh Special Session, Chapter 3. This legislation, beginning tax year 1997, requires truth in taxation hearings if the proposed property tax levy of a community college district, county, city or town, exclusive of amounts attributable to new construction, is greater than the amount levied by the jurisdiction in the prior tax year.
Provisions
1. Codifies in the Arizona Constitution that the Legislature establish laws requiring a notice and a public hearing requirement in statute if a community college district, school district, city, town or county proposes a greater tax levy on various primary property taxes (excluding any amount attributable to new construction) than the last taxable year.
2. Requires that any increased tax levy on primary property taxes by a community college district, school district, city, town or county be approved by a vote of qualified electors at an election in the relevant taxing jurisdiction.
3. Defines “primary property taxes” for the purposes of this new constitutional section, as ad valorem taxes imposed against assessed valuation as determined by Section 18, subsection 3 of the Arizona Constitution, which provides for various methods of valuing real property, improvements and mobile homes and designates the lowest valuation as the amount to be used for most property
4. Requires the Secretary of State to submit the proposition to voters at the next general election and becomes effective if approved by the voters and on proclamation of the Governor.
DGG/DG/jas