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REFERENCE TITLE: municipal and county tax limitations |
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State of Arizona House of Representatives Fifty-third Legislature Second Regular Session 2018
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HCR 2015 |
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Introduced by Representatives Thorpe: Clodfelter, John, Lawrence, Nutt, Payne
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A CONCURRENT RESOLUTION
Proposing an amendment to the constitution of Arizona; amending article IX, section 19, Constitution of Arizona; amending article IX, Constitution of Arizona, by adding section 19.1; relating to local taxation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:
1. Article IX, section 19, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:
19. Limitation on annual increases in local ad valorem tax levies; exceptions
Section 19. (1) The maximum amount of ad valorem taxes levied by any county, city, town or community college district shall not exceed an amount two per cent percent greater than the amount levied in the preceding year. In addition, from and after December 31, 2016:
(a) Any increase in the ad valorem tax levy of a county, city or town exceeding an amount of one percent more than the levy in the preceding year must be approved by a vote of the qualified electors of the county, city or town.
(b) Any increase of any amount in the ad valorem tax levy of a county, city or town in any three consecutive years must be approved in the third year by a vote of the qualified electors of the county, city or town.
(2) The limitation prescribed by subsection (1) of this section does not apply to:
(a) Ad valorem taxes or special assessments levied to pay the principal of and the interest and redemption charges on bonded indebtedness or other lawful long-term obligations issued or incurred for a specific purpose.
(b) Ad valorem taxes or assessments levied by or for property improvement assessment districts, improvement districts and other special purpose districts other than counties, cities, towns and community college districts.
(c) Ad valorem taxes levied by counties for support of school districts.
(3) This section applies to all tax years beginning after December 31, 1981.
(4) The annual limitation prescribed by subsection (1) of this section shall be increased applied each year to the maximum permissible limit, whether or not the political subdivision actually levies levied ad valorem taxes to such amounts the full amount in any preceding year, except that beginning in 2007 the limitation prescribed by subsection (1) of this section shall be computed from the actual tax levy of the county, city, town or community college district in 2005.
(5) The voters, in the manner prescribed by law, may elect to allow ad valorem taxation in excess of the limitation prescribed by this section.
(6) The limitation prescribed by subsection (1) of this section shall be increased by the amount of ad valorem taxes levied against property that is not subject to taxation in the prior year and shall be decreased by the amount of ad valorem taxes levied against property that is subject to taxation in the prior year and that is not subject to taxation in the current year. Such amounts of ad valorem taxes shall be computed using the rate applied to property that is not subject to this subsection.
(7) The legislature shall provide by law for the implementation of this section.
2. Article IX, Constitution of Arizona, is proposed to be amended by adding section 19.1 as follows if approved by the voters and on proclamation of the Governor:
19.1. Local excise tax levies; voter approval; use of revenues
Section 19.1. A. Beginning from and after December 31, 2016, a county, city or town that initiates the levy or increases the rate of a transaction privilege, sales, gross receipts, use, franchise or other similar excise tax must:
1. Distinctly state the AMOUNT OF the tax or tax rate increase and the specific object or purpose for which the revenues may be spent.
2. Submit the tax or tax rate increase and the object or purpose of the tax or increase to a vote of the qualified electors of the county, city or town for approval.
B. Revenues produced from the tax or the increased tax rate increment shall be placed and maintained in a separate fund, may not be commingled with any other revenues and may not be spent for any other object or purpose. Any surplus revenue from the tax or increased tax rate increment that is not spent for the stated object or purpose in any fiscal year may not be carried over but shall be used to reduce the primary property tax levy of the county, city or town in the following year.
3. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.
4. If approved by the voters pursuant to section 3, this resolution is effective retroactively to from and after December 31, 2016.