ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: FIN DPA 7-3-0-0 | 3rd Read 18-11-1-0 House: WM DP 6-4-0-0 | 3rd Read 31-28-1-0 Final Pass: 17-11-2-0

---

SB 1093: equalization assistance; class one property

Sponsor: Senator Mesnard, LD 17

Transmitted to the Governor

Overview

Reduces the assessed valuation percentage on all class one properties over two years to 15% by 2027 and sets the state equalization assistance tax rate (SETR) for Tax Year (TY) 2022 through TY 2027.

History

Class one property consists of commercial and industrial properties including:

1) Mining;

2) Telecommunication companies;

3) Utilities;

4) Standing timber;

5) Airport fuel delivery;

6) Oil and gas production;

7) Pipelines;

8) Shopping centers;

9) Golf courses; and

10) Most other commercial uses (A.R.S. § 42-12001).

Class one properties currently have an assessment ratio of 17.5%, which reduces by 0.5% annually until it reaches 16% (A.R.S. § 42-15001).

The county board of supervisors for each county is responsible for levying the state equalization property tax and the county treasurer shall apportion all monies collected from the state equalization assistance property tax levy to the school districts within the county (A.R.S. § 15-994). The SETR in TY 2021 is $0.4263 (A.R.S. § 41-1276).

Provisions

1. Lowers the class one property assessment ratio to 15.5% in TY 2026 then 15% in TY 2027 and thereafter. (Sec. 2)

2. Sets the SETR at:

a) $0.4128 in TY 2022;

b) $0.4009 in TY 2023;

c) $0.3909 in TY 2024;

d) $0.3824 in TY 2025;

e) $0.3295 in TY 2026; and

f) $0.2871 in TY 2027. (Sec. 1)

3. Prohibits fire district tax from being greater than $3.75 per $100 of assessed valuation beginning in TY 2024. (Sec. 3)

4. Makes technical changes. (Sec. 1)

5.

6.

7. ---------- DOCUMENT FOOTER ---------

8.                   SB 1093

9. Initials VP/ES        Page 0 Transmitted

10.

11. ---------- DOCUMENT FOOTER ---------