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

TO: MEMBERS OF THE SENATE

FINANCE COMMITTEE

DATE: February 28, 2001

SUBJECT: Strike Everything Amendment to S.B. 1128

Purpose

Makes changes to the rate of the tax levy of the for county equalization assistance for education to conform with the existing truth in taxation statute.

Background

The truth in taxation statute was originally enacted by Laws 1996, Seventh Special Session, Chapter 3. This legislation, which began in the 1997 tax year, requires truth in taxation hearings if the proposed property tax levy is greater than the amount levied by the jurisdiction in the prior tax year.

Currently, the tax levy for county equalization assistance for education is assessed at a specific rate in the statute. The strike everything amendment to S.B. 1128 requires the rate to conform with computations prescribed in the truth in taxation statutes.

Additionally, the strike everything amendment to S.B. 1128 sets the county equalization assistance for education tax rate at 49.74 cents per $100 of net assessed valuation (NAV) for tax years 2001 and 2002 to comply with the truth in taxation law requiring a reduction in the tax in proportion to the statewide appreciation rate of existing property.

Provisions

1. Requires the tax levied for county equalization assistance for education be determined according to rates as prescribed under the truth in taxation levy statute.

2. Sets, for the tax years 2001 and 2002, the tax rate for the county equalization assistance for education at 49.74 cents per $100 NAV.

3. Provides for a general effective date.

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