Chapter 0158 - 502R - H Ver of HB2184

House Engrossed

State of Arizona

House of Representatives

Fiftieth Legislature

Second Regular Session

2012

CHAPTER 158

HOUSE BILL 2184

AN ACT

establishing county fire district assistance tax levy limits.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. County fire district assistance tax; levy limit 2012 through 2014

For purposes of determining a fire district levy limit through December 31, 2014:

1. If the net assessed valuation of all property in a fire district has declined by a combined total of twenty‑five per cent or more beginning with the 2008 valuation year, notwithstanding the tax rate limit established pursuant to section 48-807, subsection F, Arizona Revised Statutes, and beginning with the fiscal year that starts July 1, 2012, the fire district may adopt a budget and the board of supervisors may levy a tax rate not to exceed three dollars seventy‑five cents per one hundred dollars of assessed valuation if all of the following apply:

(a) The amount of levy proposed to be raised by a tax rate in excess of three dollars twenty‑five cents per one hundred dollars of assessed valuation shall not exceed the amount of the tax levy raised in the fiscal year before the tax rate exceeding three dollars twenty‑five cents per one hundred dollars of assessed valuation.

(b) The maximum tax rate shall be determined by adding to the base year tax rate an amount up to fifty per cent of the difference between:

(i) The tax rate required to maintain the base year tax levy in the current tax year.

(ii) The base year tax rate.

(c) A fire district that has increased its tax rate above three dollars and twenty‑five cents per one hundred dollars of assessed valuation beginning with the fiscal year that starts July 1, 2012 shall use as the base year the amount of tax levied in 2011‑2012 for purposes of calculating the increased tax rate permitted pursuant to subdivision (b) of this paragraph.

(d) The fire district certifies to the board of supervisors at the time of annual budget submission that no portion of the tax levy raised in the fiscal year in which the rate exceeds three dollars twenty‑five cents per one hundred dollars of assessed valuation shall be used to pay salary increases or to increase the number of full‑time positions in the fire district, unless the salary and benefits paid to any new employee is funded entirely by a grant received by the fire district or an existing employee of the fire district is promoted to a different job classification.

(e) The fire district certifies to the board of supervisors at the time of budget submission that no portion of the tax levy raised in the fiscal year in which the rate exceeds three dollars twenty‑five cents per one hundred dollars of assessed valuation shall be allocated to future year expenditures, retained or encumbered as reserve monies of any type, and that no more than five per cent of the tax levy raised is planned for carryforward monies at the end of the fiscal year.

2. A fire district shall certify to the board of supervisors and the property tax oversight commission established by section 42‑17002, Arizona Revised Statutes, within thirty days after the end of the preceding fiscal year in which the rate exceeded three dollars twenty‑five cents per one hundred dollars of assessed valuation the total number of full‑time positions, the total amount of wages paid to full‑time personnel and the total amount and purpose of all monies retained or encumbered by the fire district.

3. A fire district with a tax rate in excess of three dollars twenty‑five cents per one hundred dollars of assessed valuation shall not call for an override election pursuant to section 48-807, subsection G, Arizona Revised Statutes.