property tax increment; affordable housing

SB1555 - 572R - I Ver

REFERENCE TITLE:
property tax increment; affordable housing

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1555

Introduced by

Senator
Rogers

AN
ACT

Amending Title 11, chapter 2, article 13,
Arizona Revised Statutes, by adding section 11-382; amending title 42, chapter
13, article 2, Arizona Revised Statutes, by adding section 42-13057; relating
to housing.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Heading change

The article heading of title 11,
chapter 2, article 13, Arizona Revised Statutes, is changed from "COUNTY
HOUSING TRUST FUND" to "COUNTY HOUSING FUNDS".

Sec. 2. Title 11, chapter 2, article 13,
Arizona Revised Statutes, is amended by adding section 11-382, to read:

START_STATUTE
11-382.

Housing affordability fund

A. The board of supervisors of each
county shall establish a housing affordability fund consisting of monies
deposited pursuant to section 42-13057.

B. Monies in the fund may be used to
provide:

1. Down payment or closing costs
assistance for residential property purchased by an employee of any of the
following:

(
a
) This state
or a city, town, county, school district or other political subdivision of this
state.

(
b
) A charter
school.

(
c
) A public
safety, health care or education employer.

2. Grants, loans or incentives to
builders or developers for constructing more affordable housing units,
including:

(
a
) Residential
units with a reduced square footage.

(
b
) Entry-level
housing.

(
c
) Workforce
housing.

(
d
) Middle
housing.

3. Infrastructure or fee offsets for
affordable housing development.

C. A county may enter into an
intergovernmental agreement with a city or town or a housing authority to
administer the fund and distribute the monies in the fund.

d. Monies in the fund shall be
accounted for separately from other monies of the county and may not be used to
supplant funding for EXISTING housing programs or for general governmental
purposes.
END_STATUTE

Sec. 3. Title 42, chapter 13, article 2,
Arizona Revised Statutes, is amended by adding section 42-13057, to read:

START_STATUTE
42-13057.

Valuation of new residential construction

A. Notwithstanding any other law, the
county assessor shall value newly constructed residential property within sixty
days after the sale of the property.

B. the taxpayer shall pay the amount
of tax on the property based on the new valuation on a prorated basis based on
the days remaining in the tax year.

C. The county treasurer shall deposit
an amount equal to the difference between the property's new valuation and the
property's initial valuation in a housing affordability fund established
pursuant to section 11-382.

D. The deposit required by subsection
C of this section applies only to property tax revenues attributable to the
period between the initial valuation of newly constructed residential property
and the tax year in which the property is first fully assessed and taxed at the
property's new valuation. Beginning the first tax year in which the
property is fully taxed at the property's new valuation, all property tax
revenues shall be distributed to applicable taxing jurisdictions in the same
manner as other property tax revenues.
END_STATUTE