ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: COM DP 6-4-0-0

HB 2861: building permits; fees

Sponsor:  Representative Kaiser, LD 15

House Engrossed

Overview

Limits municipal building permit fees to the use of funding the issuing department.

History

Municipalities may require building permits but must adhere to certain statewide rules governing their issuance. First, a municipality must provide copies of the permit to the relevant county assessor and to the director of the Department of Revenue. These copies must include the permit number, issue date, and parcel number, and must be followed with an update after a certificate of occupancy or completion is issued.

Additionally, a municipality may not require an applicant to hold a transaction privilege tax or business license as a precondition of the permit. Municipalities are allowed to recover reasonable costs associated with considering and granting a building permit (A.R.S. § 9-467). Similar provisions apply to issuing of building permits by county boards of supervisors (A.R.S. § 11-321).

Provisions

1.   Modifies fees for building permits to be reasonably proportionate to direct costs of issuing the permit, rather than allowing the municipality to recover reasonable costs. (Sec. 1)

2.   Restricts building permit fees to the use of funding the municipal department that issues the permit. (Sec. 1)

3.   Prohibits building permit fees from being used as revenue for general municipal expenses. (Sec. 1)

4.   Directs municipalities to post revenues from building permits and itemized costs of issuing a permit on its website. (Sec. 1)

5.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical changes. (Sec. 1)

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9.                     HB 2861

10.  Initials PRB/AF     Page 0 House Engrossed

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