41-1276

41-1276. Truth in taxation levy for
equalization assistance to school districts

(Caution: 1998 Prop. 105 may apply)

A. On or before February 15 of each year, the joint legislative budget committee
shall compute and transmit the truth in taxation rates for equalization assistance for
school districts for the following fiscal year to:

1. The chairmen of the house of representatives ways and means committee and the
senate finance committee or their successor committees.

2. The chairmen of the appropriations committees of the senate and the house of
representatives or their successor committees.

B. The truth in taxation rates consist of the qualifying tax rate for a high school
district or a common school district within a high school district that does not offer
instruction in high school subjects pursuant to section 15-971, subsection B, paragraph
1, a qualifying tax rate for a unified district, a common school district not within a
high school district or a common school district within a high school district that
offers instruction in high school subjects pursuant to section 15-971, subsection B,
paragraph 2 and a state equalization assistance property tax rate pursuant to section
15-994 that will offset the change in net assessed valuation of property that was subject
to tax in the prior year.

C. The joint legislative budget committee shall compute the truth in taxation rates
as follows:

1. Determine the statewide primary net assessed value for the preceding tax year as
provided in section 42-17151, subsection A, paragraph 3.

2. Determine the statewide primary net assessed value for the current tax year,
excluding the net assessed value of property that was not subject to tax in the preceding
year.

3. Divide the amount determined in paragraph 1 of this subsection by the amount
determined in paragraph 2 of this subsection.

4. Adjust the qualifying tax rates and the state equalization assistance property
tax rate for the current fiscal year by the percentage determined in paragraph 3 of this
subsection in order to offset the change in net assessed value.

D. Except as provided in subsections E and G of this section, the qualifying tax
rate for a high school district or a common school district within a high school district
that does not offer instruction in high school subjects, the qualifying tax rate for a
unified school district, a common school district not within a high school district or a
common school district within a high school district that offers instruction in high
school subjects and the state equalization assistance property tax rate for the following
fiscal year shall be the rate determined by the joint legislative budget committee
pursuant to subsection C of this section. The committee shall transmit the rates to the
superintendent of public instruction and the county boards of supervisors by March 15
each year.

E. If the legislature proposes either qualifying tax rates or a state equalization
assistance property tax rate that exceeds the truth in taxation rate:

1. The house of representatives ways and means committee and the senate finance
committee or their successor committees shall hold a joint hearing on or before February
28 and publish a notice of a truth in taxation hearing that meets the following
requirements:

(a) The notice shall be published twice in a newspaper of general circulation in
this state that is published at the state capital. The first publication shall be at
least fourteen but not more than twenty days before the date of the hearing. The second
publication shall be at least seven but not more than ten days before the date of the
hearing.

(b) The notice shall be published in a location other than the classified or legal
advertising section of the newspaper.

(c) The notice shall be at least one-fourth page in size and shall be surrounded by
a solid black border at least one-eighth inch in width.

(d) The notice shall be in the following form, with the "truth in taxation hearing
- notice of tax increase" headline in at least eighteen point type:

Truth in Taxation Hearing

Notice of Tax Increase

In compliance with section 41-1276, Arizona Revised Statutes, the state
legislature is notifying property taxpayers in Arizona of the legislature's
intention to raise the property tax levy over last year's level.

The proposed tax increase will cause the taxes on a $100,000 home to
increase by $_____.

All interested citizens are invited to attend a public hearing on the
tax increase that is scheduled to be held ___________ (date and time) at
_________ (location).

(e) For purposes of computing the tax increase on a one hundred thousand dollar
home as required by the notice, the joint meeting of the house of representatives ways
and means committee and the senate finance committee or their successor committees shall
consider the difference between the truth in taxation rate and the proposed increased
rate.

2. The joint meeting of the house of representatives ways and means committee and
the senate finance committee or their successor committees shall consider any motion to
recommend the proposed tax rates to the full legislature by roll call vote.

F. In addition to publishing the truth in taxation notice under subsection E,
paragraph 1 of this section, the joint meeting of the house of representatives ways and
means committee and the senate finance committee or their successor committees shall
issue a press release containing the truth in taxation notice.

G. Notwithstanding any other law, the legislature shall not adopt a state budget
that provides for either qualifying tax rates pursuant to section 15-971 or a state
equalization assistance property tax rate pursuant to section 15-994 that exceeds the
truth in taxation rates computed pursuant to subsection A of this section unless the
rates are adopted by a concurrent resolution approved by an affirmative roll call vote of
two-thirds of the members of each house of the legislature before the legislature enacts
the general appropriations bill. If the resolution is not approved by two-thirds of the
members of each house of the legislature, the rates for the following fiscal year shall
be the truth in taxation rates determined pursuant to subsection C of this section and
shall be transmitted to the superintendent of public instruction and the county boards of
supervisors.

H. Notwithstanding subsection C of this section and if approved by the qualified
electors voting at a statewide general election, the legislature shall not set a
qualifying tax rate that exceeds $2.1265 for a common or high school district or $4.253
for a unified school district. The legislature shall not set a county equalization
assistance for education rate that exceeds $0.5123.

I. Pursuant to subsection C of this section, the qualifying tax rate in tax year
2008 for a high school district or a common school district within a high school district
that does not offer instruction in high school subjects as provided in section 15-447 is
$1.4622 and for a unified school district, a common school district not within a high
school district or a common school district within a high school district that offers
instruction in high school subjects as provided in section 15-447 is $2.9244. The state
equalization assistance property tax rate in tax years 2006, 2007 and 2008 is zero. The
state equalization assistance property tax rate in tax year 2009 shall be computed by
annually adjusting the tax year 2005 rate of $0.4358 as provided by this section through
tax year 2009.