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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
housing trust fund; unclaimed property.
Purpose
Requires the Arizona Department of Revenue (ADOR) to annually deposit 55 percent of unclaimed property sale monies into the Housing Trust Fund (HTF). Allots 40 percent of unclaimed property sale monies deposited into the HTF to be used exclusively for the development of eligible and viable housing in rural areas.
Background
ADOR administers
and enforces the collection of taxes including luxury, transaction privilege,
property and individual and corporate income taxes (A.R.S. Title 42 and Title 43). ADOR is
responsible for selling abandoned property to the highest bidder at a public
sale within three years after receiving abandoned property (A.R.S.
§ 44-312). All monies received from the sale of abandoned property must be
annually deposited in the state General Fund (state GF) except: 1) the first
$2,000,000 is deposited into the Seriously Mentally Ill Housing Trust Fund (SMI
Housing Trust Fund) administered by the Arizona Health Care Cost Containment
System; 2) the second $2,500,000 is deposited into the HTF administered by the
Arizona Department of Housing (ADOH); and 3) the next $24,500,000 is deposited
into the ADOR Administrative Fund (A.R.S.
§ 44-313).
The HTF consists
of: 1) the annual $2,500,000 allocation from unclaimed property sales; 2) the
Arizona Industrial Development Authority single-family mortgage program year-end
balance; and 3) interest earnings generated by the HTF. The HTF provides grants
to develop projects and programs connected with providing housing opportunities
for low- and
moderate-income households and for housing affordability programs. A portion of
the HTF monies must be used exclusively for housing in rural areas. HTF monies
may be spent on constructing or renovating facilities and on housing
assistance, including support services, for persons who have been determined to
be SMI and to be chronically resistant to treatment. The Director of ADOH must
report annually to the Legislature on the status of the HTF (A.R.S. §§ 41-3955
and 44-313).
If the reallocation of unclaimed property sale proceeds changes the amount deposited into the state GF, there may be a fiscal impact to the state GF associated with this legislation.
Provisions
1. Requires ADOR to annually deposit 55 percent of unclaimed property sale monies into the HTF, rather than $2,500,000.
2. Requires 40 percent of the unclaimed property sale monies deposited in the HTF to be used exclusively for the development of eligible and viable housing in rural areas.
3. Allocates the annual $2,000,000 deposit of unclaimed property sale monies in the SMI Housing Trust Fund after the deposit into the HTF, rather than before deposit into the HTF.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2023
JT/PM/sr