ARIZONA STATE SENATE
Phoenix, Arizona
improvement districts;
public lighting
Authorizes the governing
body of an improvement district to levy equally apportioned property taxes.
Allows real property owners to petition an improvement district’s governing
body to levy either ad valorem or equally apportioned property taxes.
Background
Special taxing districts are
usually created to fill a need to enable services to be provided in an area
that might otherwise be limited from receiving these services for various
reasons, including size, location, financial limitations or unavailability of
other government support. The formation of a special taxing district creates a
funding stream to pay for the desired or needed services via a property tax on
all real property within the boundaries of the special taxing district.
Most special taxing
districts are funded by ad valorem property taxes levied on all property within
the district limits. A special taxing district levy is a secondary levy and is
based on the full cash valuation of the property. Statute usually requires
these taxes to be assessed at the same time and in the same manner as county
taxes.
S.B. 1330 allows the
governing body of an improvement district the option to equally apportion
property taxes instead. This bill also allows real property owners to petition
the governing body of the applicable district to levy either ad valorem or
equally apportioned property taxes. A fiscal note has been requested from the
Joint Legislative Budget Committee staff, but has not been received. However,
this measure should not impact the state general fund.
Provisions
1. Authorizes the governing body of an improvement district, alternatively, to levy property taxes by an equal apportionment based on the number of the properties within the district.
2. Requires the governing body of an improvement district to publish notice of the statements and estimates of district expenses.
3. Allows real property owners to petition the governing body to levy ad valorem or equally apportioned taxes.
4. Requires the governing body of an improvement district to approve property tax petitions, pending receipt of the required number of qualifying signatures.
5. Provides that method of property taxation adopted in district petitions will take affect on a date prescribed by the governing body of the applicable improvement district.
6. Provides for a general effective date.
Prepared by Senate Staff
February 19, 2002