ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: FIN DPA 4-3-0-0 | 3rd Read 17-11-2-0 House: WM DP 5-4-0-0

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SB 1050: GPLET; notice; abatement period

Sponsor: Senator Leach, LD 17

Caucus & COW

Overview

Imposes additional posting requirements on a government lessor's public database for Government Property Lease Excise Tax (GPLET) leases, development agreements and notices. Prohibits the abatement of GPLET revenues specified for school districts.

History

Within 30 days of entering a lease for the occupancy of a government property improvement, the government lessor must record a memorandum of the lease in the office of the county recorder in the county in which the government property is located and submit to the county treasurer copies of the lease or an abstract of the lease. The government lessor also must maintain a public database by county, city or town or post its lease agreements on a county, city or town website in locations where the government property leases are subject to property tax (A.R.S. § 42-6202).

On or before February 15 each year, the county treasurer is required to submit a report to the Department of Revenue (DOR) and the Joint Legislative Budget Committee of all returns and payments received for the preceding calendar year regarding leases of government property improvements owned by the government lessor (A.R.S. § 42-6204).

A.R.S. § 42-6209 allows for a city or town to abate property tax on a property for eight years after the certificate of occupancy is issued on a government property improvement.

Provisions

1. Requires, within 30 days, each government lessor to include any GPLET leases in the lessor's public database. (Sec. 1)

2. Requires a government lessor to post its GPLET leases and development agreements on its website. (Sec. 1)

3. Requires, for every lease and development agreement, the government lessor's database to include the following minimum information:

a) the county assessor's parcel number;

b) the legal description and situs address of the property and the property type;

c) the name of the lessee and the county recording number of the lease;

d) the time period in which the lease or development agreement is subject to abatement and excise tax, if applicable;

e) the amount of all other taxes, rents or fees the lessee is required to remit to the government lessor or other taxing jurisdictions during the lease or abatement period;

f) links to all lease and development agreements and the corresponding government lessor notices; and

g) a link to the current map of the city's or town's central business district and redevelopment areas. (Sec. 1)

4. Adds the county assessor's parcel number of the government property improvement to the government lessor's GPLET return submitted to the county treasurer. (Sec. 2)

5. Requires the Department of Revenue to post the annual GPLET report, submitted by the county treasurer, on its website within 30 days after receipt. (Sec. 2)

6. Includes community college districts to the jurisdictions that must receive the required notification of a proposed government property improvement located in a slum or blighted area and the estimated amount of the property tax revenue that a jurisdiction will forego during the term of the lease and abatement period. (Sec. 3)

7. Requires the government lessor to include in its notice to the governing bodies of the affected jurisdictions the estimated amount of the property tax revenue the county, city, town, school district and, if applicable, community college district will forego during the term of the lease and abatement period. (Sec. 4)

8. Prohibits the abatement of GPLET revenues designated for school districts. (Sec. 4)

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12.                   SB 1050

13. Initials VP           Page 0 Caucus & COW

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