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ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

 

FACT SHEET FOR S.B. 1602

 

type 03 districts; student count

Purpose

Requires, for the property tax levied in a common school district not within a high school district (Type 03 district) by a county board of supervisors (county BOS), the property tax to be equal to the countywide average per pupil equalization base for high school pupils multiplied by the student count, rather than number of, high school pupils in the Type 03 district during the prior school year.

Background

Students who reside in a Type 03 district but attend another school district for high school are enrolled in the school district of the student's attendance for the purposes of determining student count and apportionment of state aid (A.R.S. § 15-824).

Laws 2022, Chapter 285 requires a county BOS to annually levy, at the time of levying other taxes, an additional tax in each Type 03 district equal to the product of: 1) the countywide average per pupil equalization base for high school pupils; and 2) the number of the district's resident high school pupils during the prior school year. The Arizona Department of Education (ADE) must, by July 1, annually provide each county BOS with the countywide average per pupil equalization base for high school pupils, the number of the district's resident high school pupils during the prior school year and any other information request by the county BOS for the purposes of levying the property tax. Monies collected by the property tax must be added to county aid for equalization assistance and distributed to school districts in the same manner as the state equalization tax rate.

Student count means average daily membership for the prior fiscal year before the current year (A.R.S. § 15-901).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires, for the property tax levied in a Type 03 district by a county BOS, the property tax to be equal to the countywide average per pupil equalization base for high school pupils multiplied by the student count, rather than number of, high school pupils in the Type 03 district during the prior school year.

2.   Requires the ADE to annually provide each county BOS with the countywide average per pupil equalization base for high school pupils and the student count, rather than number of, high school pupils in the Type 03 district during the prior school year.

3.   Becomes effective on the general effective date.

Prepared by Senate Research

February 12, 2024

MH/slp