ARIZONA STATE SENATE
Phoenix, Arizona
truth in taxation
Purpose
Changes notification
requirements for school districts, counties, cities and towns seeking to raise
property taxes.
Background
The concept of property tax truth in taxation was originally enacted by Laws 1996, Seventh Special Session, Chapter 3.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.
Subsequent truth in taxation
provisions were adopted by Laws 1997, Chapter 274. In this case the requirement pertains to the proposed primary
property tax levy of a school district, excluding the amount produced by
levying the qualifying tax rate and for career ladder and optional performance
incentive programs. Laws 1998, Chapter
153 further expanded the application of the truth in taxation requirements to
the state.
S.B. 1259 strengthens the truth in taxation laws by clarifying and adding to the authority of the Property Tax Oversight Commission (PTOC).
There is no fiscal impact to
the state general fund associated with this measure.
1. Prohibits an entity from raising primary property taxes unless the required truth in taxation process is adhered to, excluding amounts attributable to new construction.
2. Requires that if the tax rate is stated as a dollar amount of the increase, it must include amounts for adjacent ways and other liabilities in excess of the budget.
3. Allows the PTOC to review truth in taxation limits as well as levy limits.
4. Changes the date, from the seventh day to the fourteenth day before taxes are levied, for the final budget hearing.
5. Allows the tax increase stated in the required notice to be shown as a percentage amount over the previous year’s tax rate less the amount levied for adjacent ways and other liabilities in excess of the budget.
6. Makes technical, clarifying and conforming changes.
7. Provides for a general effective date.
Prepared by Senate Staff
February 1, 2001