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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
qualifying tax rate; tax bill
Purpose
Requires each property tax bill and property tax statement prepared for any property located within a school district to include a prescribed statement regarding specified tax rates.
Background
If property that is taxable by a county assessor is mortgaged and the mortgagee pays the tax on behalf of the mortgagor, the county treasurer must mail or, if requested, email a written statement of taxes due to the mortgagor's last known address or email address by November 1 and, on request, to the mortgagee in any form established by the county treasurer. The property tax statement must include the following for the current and previous tax years: 1) the amount of primary and secondary taxes applicable to the property that is due to each taxing jurisdiction; and 2) if applicable, the amount of additional state aid to school districts (A.R.S. § 42-18054).
The equalization base for a school district is first funded by local property tax revenues collected from the qualifying tax rate (QTR) levy and then by the state General Fund (state GF). If the amount generated by the QTR exceeds the school district's equalization base, the school district is not entitled to equalization assistance and will be completely funded by QTR revenues. If the amount generated by the QTR does not exceed the equalization base, the school district is eligible for equalization assistance and receives monies in the form of Basic State Aid, which is funded through the state GF. At the time of levying the QTR, the county school superintendent must annually validate any additional primary school district tax levy amount requests from school districts for 10 specified purposes. The county school superintendent must then levy the sum of those amounts.
At the time of levying other taxes, a county BOS must annually levy an additional tax in each common school district not within a high school district (Type 03 district) equal to the lesser of: 1) a rate that is equal to the applicable QTR; or 2) a rate that would result in a levy that equals the statewide average per pupil funding for high school pupils, multiplied by the student count of resident high school pupils in the Type 03 district during the prior year. Monies collected by the property tax must be transmitted to the State Treasurer for deposit in the state General Fund to aid in school financial assistance (A.R.S. §§ 15-971 and 15-992).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires each county treasurer to separately state, at a minimum, a prescribed statement on each property tax bill and property tax statement prepared for any property located within a school district that includes:
a) the QTR;
b) the tax rate levied in a Type 03 district; and
c) any additional tax rate levied by the school district.
2. Becomes effective on the general effective date.
House Action
WM 2/19/25 DPA 5-4-0-0
3rd Read 2/26/25 32-27-1
Prepared by Senate Research
March 6, 2025
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