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SB1695 - 572R - I Ver
REFERENCE TITLE:
expenditure limitation; school districts; repeal
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1695
Introduced by
Senators
Diaz: Bravo, Fernandez, Gonzales, Hatathlie, Kuby, Miranda, Ortiz, Sears
AN
ACT
amending section 12-262, Arizona
Revised Statutes; repealing section 15-911, Arizona Revised Statutes;
amending sections 15-1285, 17-266, 22-117, 41-563, 42-5010
and 42-5010.01, Arizona Revised Statutes; relating to expenditure
limitations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 12-262, Arizona Revised
Statutes, is amended to read:
START_STATUTE
12-262.
Submission of plan; use of monies; report
A. The presiding judge of the superior court in each
county desiring to improve, maintain or expand juvenile probation services
,
or to achieve or maintain the average adult probation
case supervision requirement prescribed in section 12-251
,
may prepare a plan in accordance with guidelines issued by the supreme
court. The plan shall be submitted to the state supreme court.� The
supreme court guidelines shall require that the plan include:
1. That
funds
monies
received under this article
shall
be used
primarily for
payment of
paying
salaries of probation officers supervising adults or juveniles on probation to
the superior, justice or municipal court.
2. That the
funds
monies
provided by
the
this
state for this purpose
will
be used to
supplement county funds provided for probation services.
3. The proposed budget necessary to implement the
plan, including the amount currently budgeted for that county's probation
program.
B. If a county is subject to section 12-269,
the following apply:
1. Beginning in fiscal year 2006-2007, the
county's contribution to the hospitalization and medical care of the indigent
sick, to the nonfederal portion of providing long-term care and for the
administrative costs of implementing sections 36-2901.01 and 36-2901.04
shall be reduced pursuant to section 11-292, subsection Q.
2. The economic estimates commission shall increase
the county's base expenditure limit beginning in the fiscal year that the
county assumes funding responsibility pursuant to section 41-563,
subsection
D
C
.
C. The supreme court shall report to the joint
legislative budget committee all amounts provided to any county pursuant to
this article for adult probation services or juvenile probation services.
END_STATUTE
Sec. 2.
Repeal
Section 15-911, Arizona Revised
Statutes, is repealed.
Sec. 3. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 15-1285, Arizona Revised
Statutes, is amended to read:
START_STATUTE
15-1285.
Budgetary, expenditure or revenue control limits; exemption
Notwithstanding any other law, monies received by school
districts and career technical education districts pursuant to this chapter
:
1. Are not considered local revenues
for the purposes of article IX, section 21, Arizona constitution.
2.
are exempt from any
budgetary, expenditure or revenue control limit that would limit the ability of
school districts or career technical education districts to accept or expend
those monies.
END_STATUTE
Sec. 4. Section 17-266, Arizona Revised
Statutes, is amended to read:
START_STATUTE
17-266.
Construction by employees or force account
Notwithstanding sections 41-2535 and 41-2572, the
commission may build, alter, repair, improve or demolish a structure or other
improvement by employees or force account if the project cost does not exceed
thirty-five thousand dollars
$35,000
. This
exemption does not apply to an office or residence building or to storage
facilities for equipment and supplies. In fiscal year 1986-1987,
and each fiscal year thereafter, the maximum project cost for which
construction by employees or force account is authorized shall be adjusted by
the annual percentage change in the GDP price deflator as defined in section 41-563
, subsection E
.
END_STATUTE
Sec. 5. Section 22-117, Arizona Revised
Statutes, is amended to read:
START_STATUTE
22-117.
Payment of compensation and expenses
A. Justices of the peace shall be allowed by the
board of supervisors, as a county charge, the following:
1. Space.
2. Equipment.
3. Supplies.
B. In a county with a population of less than one
million five hundred thousand persons, the state shall pay forty percent of the
compensation and employee-related expenditures of a justice of the peace, and
the county shall pay sixty percent of the compensation and employee-related
expenditures of a justice of the peace, except that the county shall pay the
full amount of the employer contribution of the state retirement system or plan
or any county health plan.
C. If a county is subject to subsection B of this
section, the state treasurer shall remit the compensation and employee-related
expenditures payable by the state to the county treasurer, and the county shall
disburse the monies to the justice of the peace.
D. In a county with a population of one million five
hundred thousand persons or more, the county shall pay one hundred percent of
the compensation and employee-related expenditures of a justice of the peace.
E. If a county is subject to subsection D of this
section, the following apply:
1. The county's contribution to the hospitalization
and medical care of the indigent sick and for the administrative costs of
implementing sections 36-2901.01 and 36-2901.04 shall be reduced
pursuant to section 11-292, subsection R in an amount that is equal to
the difference between the total costs that the county paid pursuant to
subsection D of this section and the amount that the county would have paid if
the county were subject to subsection B of this section.
2. Pursuant to section 41-563, subsection
D
C
, the economic estimates
commission shall increase the county's base expenditure limit in an amount that
is equal to the difference between the total costs that the county paid
pursuant to subsection D of this section and the amount that the county would
have paid if the county were subject to subsection B of this section.
F. The total amount that may be expended in any
fiscal year by the state treasurer for justice of the peace compensation and
employee related expenditures reimbursement shall not exceed the amount
appropriated in the general appropriation act for this purpose, together with
additional amounts appropriated by any special legislative appropriation for
justices of the peace.
END_STATUTE
Sec. 6. Section 41-563, Arizona Revised
Statutes, is amended to read:
START_STATUTE
41-563.
Expenditure limitations; determination by the commission;
definitions
A. For political subdivisions
,
the commission shall:
1. Determine the base limit level of political
subdivisions for each political subdivision subject to an expenditure
limitation pursuant to article IX, section 20, Constitution of Arizona.� For
the purposes of this subsection and subsection
D
C
of this section,
the
"base
limit" of each political subdivision means the amount of actual payments
of local revenues by such political subdivision in fiscal year 1979-1980
as used to determine the expenditure limitation pursuant to paragraph 4 of this
subsection.
2. Determine and report to the governing board of
each political subdivision subject to an expenditure limitation pursuant to
article IX, section 20, Constitution of Arizona,
prior to
before
February 1 of each year, the following:
(a) The total of the estimated population of each
such political subdivision as of July 1 of the prior year and the estimated
population of any areas annexed by such political subdivisions thereafter,
based on the population estimates developed by the
department of
economic security
office of economic opportunity
. The
population of any areas annexed thereafter must be estimated as of July 1 of
the prior year.
(b) The estimated change in the GDP price deflator
used to determine the expenditure limitation for the following fiscal year over
the GDP price deflator used to determine the expenditure limitation for the
current fiscal year.
(c) The estimated expenditure limitation for each
such political subdivision for the following fiscal year.
3. Determine and report to the governing board of
each political subdivision subject to an expenditure limitation pursuant to
article IX, section 20, Constitution of Arizona,
prior to
before
April 1 of each year, the following:
(a) The total of the population of each such
political subdivision as of July 1 of the prior year and the population of any
areas annexed by such political subdivisions thereafter. The
population of any areas annexed thereafter must be estimated as of July 1 of
the prior year.
(b) The estimated change in the GDP price deflator
used to determine the expenditure limitation for the following fiscal year over
the GDP price deflator used to determine the expenditure limitation for the
current fiscal year.
(c) The expenditure limitation for each such
political subdivision for the following fiscal year.
4. Determine the expenditure limitation for each
political subdivision subject to an expenditure limitation pursuant to article
IX, section 20, Constitution of Arizona, as follows:
(a) Determine the population of the political
subdivision as of July 1, 1978.
(b) Determine the total population of the political
subdivision as required by paragraph 3, subdivision (a) of this subsection.
(c) Divide the population determined in subdivision
(b) of this paragraph by the population determined in subdivision (a) of this
paragraph.
(d) Determine the estimated or actual GDP price
deflator for the 1978 calendar year.
(e) Determine the estimated GDP price deflator for
the calendar year immediately preceding the fiscal year for which the
expenditure limitation is being determined.
(f) Divide the GDP price deflator determined in
subdivision (e) of this paragraph by the GDP price deflator determined in
subdivision (d) of this paragraph.
(g) Multiply the amount determined in paragraph 1 of
this subsection for the political subdivision by the quotient determined in
subdivision (c) of this paragraph and multiply the resulting product by the
quotient determined in subdivision (f) of this paragraph.
5. If any annexation, consolidation or change in the
boundaries of a political subdivision occurs after the determination and report
required by paragraph 3 of this subsection but before July 1 of the current
year, the commission, as promptly as feasible, shall redetermine the total
population, calculated in paragraph 4, subdivision (b) of this subsection, of
the political subdivisions affected by the annexation, consolidation or change
in boundaries. The commission shall determine respective amended
expenditure limitations based on the amended population, which shall be
promptly reported to the governing board of each of the affected political
subdivisions. The political subdivisions affected shall use the
revised expenditure limitation if it is received before the annual financial
statement and estimate of expenses is prepared as required by section 42-17101.
6. In the event of the creation of a new city or
town, the base limit of the new city or town shall be determined by multiplying
the average amount of actual fiscal year 1979-1980 per capita payments of
local revenues for all cities and towns within the county in which the new city
or town is located by the population of the new city or town.
7. In the event of the division of a county into two
or more new counties, determine the expenditure limitation for each of the new
counties or the consolidation of counties, pursuant to article IX, section 20,
Constitution of Arizona, using one of the following two methods. The
board of supervisors of each new county
upon
on
the affirmative vote of two-thirds of the members of
the board of supervisors, on or before February 1 following the county's
establishment, shall adopt one of the expenditure limitations determined:
(a) Method one:
(i) Determine the existing county
which
that
has a population closest to the population of the
new county as of July 1 for the fiscal year preceding the fiscal year for which
the expenditure limit is being determined.
(ii) Determine the per capita expenditure limit for
the existing county determined in item (i) of this subdivision based on the
amount determined in paragraph 3, subdivision (c) of this subsection for the
first full fiscal year following the establishment of the new county
government.
(iii) Multiply the per capita amount determined in
item (ii) of this subdivision by the population of the new county as of July 1
in the fiscal year in which the new county government is
established. The amount
thus
determined is the
expenditure limit for the new county for the first full fiscal year following
its establishment.
(iv) Determine a base limit for the new county
which
that
will yield the new expenditure
limit determined in item (iii) of this subdivision for the first full fiscal
year following the establishment of the new county government.
(b) Method two:
(i) Determine the per capita expenditure limit of
the old county or counties for the last full fiscal year
prior to
before
the establishment of the new county government
based
upon
on
the amount determined
in paragraph 3, subdivision (c) of this subsection.
(ii) Multiply the per capita amount determined in
item (i) of this subdivision by the population of the new county as of July 1
in the fiscal year in which the new county government is
established. The amount
thus
determined is the
expenditure limit for the new county for the first full fiscal year following
its establishment.
(iii) Determine a base limit for the new county
which
that
will yield the new expenditure
limit determined in item (ii) of this subdivision for the first full fiscal
year following the establishment of the new county government.
8. If the governing board of a political subdivision
authorizes expenditures in excess of the expenditure limitation determined
pursuant to paragraph 4 of this subsection as provided in article IX, section
20, subsection (2), paragraph (b), subdivision (i), Constitution of Arizona,
the expenditure limitation for
such
that
political subdivision for the following fiscal year shall be reduced by the
amount of expenditures in excess of the limitation, unless the governing board
has held an election as provided in article IX, section 20, subsection (2),
paragraph (b), subdivision (ii), Constitution of Arizona, and the excess
expenditure has been approved by a majority of the qualified electors voting in
such
an
election.
9. If the citizens of a political subdivision
approve an increase or decrease in the expenditure limitation as provided in
article IX, section 20, subsection (6), Constitution of Arizona, the base limit
of a political subdivision shall be adjusted by the commission
such
so
that the expenditure limitation of the political
subdivision for the fiscal year following approval reflects the approved
increase or decrease.
B. For community college districts
,
the commission shall:
1. Determine the base limit of each community
college district subject to an expenditure limitation pursuant to article IX,
section 21, Constitution of Arizona. For the purposes of this
subsection and subsection
D
C
of
this section,
the
"base limit" of each community
college district means the amount of expenditures of local revenues in fiscal
year 1979-1980 as used to determine the expenditure limitation pursuant
to paragraph 4 of this subsection.
2. Determine and report to the governing board of
each community college district
,
prior to
before
February 1 of each year
,
the
following:
(a) The estimated student population,
utilizing
using
the procedure prescribed in section 15-1466.01, of
each community college district for the following fiscal year.
(b) The estimated change in the GDP price deflator
as prescribed in subsection A, paragraph 2, subdivision (b) of this section.
(c) The expenditure limitation for each community
college district for the following fiscal year.
(d) The modified expenditure limitation as
prescribed in section 15-1471, if applicable.
3. Determine and report to the governing board of
each community college district
,
prior to
before
April 1 of each year
,
the
following:
(a) The student population,
utilizing
using
the procedure prescribed in section 15-1466.01, of
each community college district for the following fiscal year.
(b) The estimated change in the GDP price deflator
as prescribed in subsection A, paragraph 2, subdivision (b) of this section.
(c) The expenditure limitation for each community
college district for the following fiscal year.
(d) The modified expenditure limitation as
prescribed in section 15-1471, if applicable.
4. Determine the expenditure limitation for each
community college district, as follows:
(a) Determine the student population of each
community college district for fiscal year 1979-1980 using the definition
of full-time equivalent student in section 15-1401 in 1979-1980,
except that if a redefinition of full-time equivalent student changes the
number of semester credit units per semester from fifteen units, the student
population for the 1979-1980 base year shall be recalculated using the
new number of units.
(b) Determine the estimated student population of
each community college district for the fiscal year for which the expenditure
limitation is being determined using the definition of full-time
equivalent student in section 15-1401.
(c) Divide the student population determined in
subdivision (b) of this paragraph by the student population determined in
subdivision (a) of this paragraph.
(d) Determine the estimated or actual GDP price
deflator for the 1978 calendar year.
(e) Determine the estimated GDP price deflator for
the calendar year immediately preceding the fiscal year for which the
expenditure limitation is being determined.
(f) Divide the GDP price deflator determined in
subdivision (e) of this paragraph by the GDP price deflator determined in
subdivision (d) of this paragraph.
(g) Multiply the amount determined in paragraph 1 of
this subsection for the community college district by the quotient determined
in subdivision (c) of this paragraph and multiply the resulting product by the
quotient determined in subdivision (f) of this paragraph.
5. In the event of an annexation, creation of a new
community college district or a consolidation or change in the boundaries of a
community college district, the base limit of a community college district
shall be adjusted by the commission according to the following guidelines:
(a) In the event of the creation of a new community
college district, the base limit of the community college district shall be
determined by multiplying the average amount of 1979-1980 per capita
expenditures of local revenues for all community college districts within
the
this
state by the student
population of the new community college district. The expenditure
limit of the county in which the new community college district is located
shall be reduced by the amount paid to other community college districts for
tuition in the fiscal year preceding the fiscal year in which the new community
college district is created.
(b) In the case of an annexation, consolidation or
change in the boundaries of a community college district, the base limit of a
community college district shall be adjusted by the commission to reflect the
change by increasing the base limit of the community college district gaining
the newly included territory and decreasing the base limit of the community
college district losing the territory.
(c) If an existing community college district
consolidates with a contiguous county
that is
not part of
a community college district
,
the commission shall:
(i) Increase the base limit of the existing
community college district by an amount equal to the amount of revenue
which
that
would have been generated by
applying the primary property tax rate of the existing community college
district in the immediately prior year to the limited assessed valuation of the
contiguous county in the immediately prior year.
(ii) Decrease the base limit of the contiguous
county by the amount of reimbursement prescribed by section 15-1469,
subsection B, paragraph 1, paid by
such
that
county in the 1979-1980 base year, except that
no
a
decrease shall
not
be made to the
base limit of
such
that
county if
the reimbursement prescribed by section 15-1469, subsection B, paragraph
1 in the immediately prior year was paid by
the
this
state pursuant to section 15-1469.01.
(d) In the case of a decrease in service boundaries
of a community college district, the base limit of the community college
district shall be reduced by the commission to reflect the amount attributable
to the service area in fiscal year 1979-1980
,
and
the base student population of the community college district shall be reduced
by the commission to reflect fiscal year 1979-1980 student population
attributable to the service area. The adjusted base limit and the
adjusted fiscal year 1979-1980 student population shall be used in
determining the expenditure limitation for the community college district in
the first year in which the service boundaries are diminished and in each
subsequent year.
C. For school districts the commission
shall:
1. Determine the base limit of school
districts subject to the expenditure limitation prescribed by article IX,
section 21, subsection (2), Constitution of Arizona.� For the purposes of this
subsection and subsection D of this section, "base limit" means the
total amount of expenditures of local revenues of all school districts in
fiscal year 1979-1980 as used to determine the expenditure limitation
pursuant to paragraph 4 of this subsection.
2. Determine and report to the
legislature prior to March 1 of each year the following:
(a) The estimated total student
population of all school districts for the current year.
(b) The estimated change in the GDP
price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of
this section.
(c) The estimated aggregate
expenditure limitation for all school districts for the following fiscal year.
3. Determine and report to the
legislature, prior to May 1 of each year, the following:
(a) The total student population of
all school districts for the current year.
(b) The estimated change in the GDP
price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of
this section.
(c) The aggregate expenditure
limitation for all school districts for the following fiscal year.
4. Determine the aggregate expenditure
limitation for all school districts as follows:
(a) Determine the aggregate student
population of all school districts for the school year 1978-1979.
(b) Determine the total student
population of all school districts for the current year.
(c) Divide the aggregate student
population determined in subdivision (b) of this paragraph by the aggregate
student population in subdivision (a) of this paragraph.
(d) Determine the estimated or actual
GDP price deflator for the 1978 calendar year.
(e) Determine the estimated GDP price
deflator for the calendar year immediately preceding the fiscal year for which
the aggregate expenditure limitation is being determined.
(f) Divide the GDP price deflator
determined in subdivision (e) of this paragraph by the GDP price deflator
determined in subdivision (d) of this paragraph.
(g) Multiply the amount determined in
paragraph 1 of this subsection by the quotient determined in subdivision (c) of
this paragraph and multiply the resulting product by the quotient determined in
subdivision (f) of this paragraph.
D.
C.
In
the case of a transfer of all or any part of the cost of providing a
governmental function, pursuant to article IX, section 20, subsection (4),
Constitution of Arizona, or article IX, section 21, subsection
(5)
(3)
, Constitution of Arizona, the
commission
shall adjust the
base limit of political subdivisions
,
or
community college districts
or school
districts
, whichever is applicable,
shall be adjusted by
the commission
to reflect the transfer by increasing the base limit of
the political subdivision
,
or
community
college district
or school district
to which the cost is
transferred and decreasing the base limit of the political subdivision
,
or
community college district
or school district
from which the cost is transferred by the
amount of the cost of the transferred governmental function.
E.
D.
For
the purposes of this section:
1. "Commission" means the economic
estimates commission.
2. "GDP price deflator" means the average
of the four implicit price deflators for the gross domestic product reported by
the United States department of commerce for the four quarters of the calendar
year.
3. "Political subdivision" means any
county, city, including any charter city, or town.
4. "Population" shall be defined pursuant
to article IX, section 20, subsection (3), paragraph (f), Constitution of
Arizona.
5. "Student population" shall be defined
pursuant to article IX, section 21, subsection
(4)
(
2
)
, paragraph
(e)
(
d
)
, Constitution of Arizona.
END_STATUTE
Sec. 7. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 42-5010, Arizona
Revised Statutes, is amended to read:
START_STATUTE
42-5010.
Rates; distribution base
A. The tax imposed by this article is levied and
shall be collected at the following rates:
1. Five percent of the tax base as computed for the
business of every person engaging or continuing in this state in the following
business classifications described in article 2 of this chapter:
(a) Transporting classification.
(b) Utilities classification.
(c) Telecommunications classification.
(d) Pipeline classification.
(e) Private car line classification.
(f) Publication classification.
(g) Job printing classification.
(h) Prime contracting classification.
(i) Amusement classification.
(j) Restaurant classification.
(k) Personal property rental classification.
(l) Retail classification and amounts equal to
retail transaction privilege tax due pursuant to section 42-5008.01.
2. Five and one-half percent of the tax base
as computed for the business of every person engaging or continuing in this
state in:
(a) The transient lodging classification described
in section 42-5070.
(b) The online lodging marketplace classification
described in section 42-5076 who has entered into an agreement with the
department to register for, or has otherwise obtained from the department, a
license to collect tax pursuant to section 42-5005, subsection L.
3. Three and one-eighth percent of the tax
base as computed for the business of every person engaging or continuing in
this state in the mining classification described in section 42-5072.
4. Zero percent of the tax base as computed for the
business of every person engaging or continuing in this state in the commercial
lease classification described in section 42-5069.
B. Except as provided by subsections J and K of this
section, twenty percent of the tax revenues collected at the rate prescribed by
subsection A, paragraph 1 of this section from persons on account of engaging
in business under the business classifications listed in subsection A,
paragraph 1, subdivisions (a) through (h) of this section is designated as
distribution base for the
purposes of section 42-5029.
C. Except as provided by subsection K of this
section, forty percent of the tax revenues collected at the rate prescribed by
subsection A, paragraph 1 of this section from persons on account of engaging
in business under the business classifications listed in subsection A,
paragraph 1, subdivisions (i) through (l) of this section is designated as
distribution base for the purposes of section 42-5029.
D. Thirty-two percent of the tax revenues
collected from persons on account of engaging in business under the business
classification listed in subsection A, paragraph 3 of this section is
designated as distribution base for the purposes of section 42-5029.
E. Fifty-three and one-third percent of
the tax revenues collected from persons on account of engaging in business
under the business classification listed in subsection A, paragraph 4 of this
section is designated as distribution base for the purposes of section 42-5029.
F. Fifty percent of the tax revenues collected from
persons on account of engaging in business under the business classification
listed in subsection A, paragraph 2 of this section is designated as
distribution base for the
purposes of section 42-5029.
G. In addition to the rates prescribed by subsection
A of this section, if approved by the qualified electors voting at a statewide
general election, an additional rate increment is imposed and shall be
collected through June 30, 2021. The taxpayer shall pay taxes
pursuant to this subsection at the same time and in the same manner as under
subsection A of this section. The department shall separately
account for the revenues collected with respect to the rates imposed pursuant
to this subsection and the state treasurer shall distribute all of those
revenues in the manner prescribed by section 42-5029, subsection E.�
The rates imposed pursuant to this subsection shall not be considered
local revenues for purposes of article IX, section 21, Constitution of Arizona.
The
additional tax rate increment is levied at the rate of six-tenths of one
per cent
percent
of the tax base of every
person engaging or continuing in this state in a business classification listed
in subsection A, paragraph 1 of this section.
H. Any increase in the rate of tax that is imposed
by this chapter and that is enacted by the legislature or by a vote of the
people does not apply with respect to contracts entered into by prime
contractors or pursuant to written bids made by prime contractors on or before
the effective date of the legislation or the date of the election enacting the
increase. To qualify for the exemption under this subsection, the
prime contractor must maintain sufficient documentation, in a manner and form
prescribed by the department, to verify the date of the contract or written
bid.
I. For taxpayers that are taxable under this chapter
other than prime contractors taxable pursuant to section 42-5075:
1. Any increase in the rate of tax that is levied by
this article or article 2 of this chapter enacted by the legislature or by a
vote of the people does not apply for a period of one hundred twenty days after
the date of the tax rate increase to the gross proceeds of sales or gross
income from the business of the taxpayer with respect to written contracts
entered into before the effective date of the tax rate increase unless the
taxpayer has entered into a contract that contains a provision that entitles the
taxpayer to recover from the purchaser the amount of the additional tax levied.
2. The provisions of this subsection apply without
regard to the accounting method used by the taxpayer to report the taxes
imposed under article 2 of this chapter.
3. The provisions of this subsection shall not be considered
in determining the rate of tax imposed under chapter 6, article 3 of this
title.
J. Zero percent of the tax revenues that are
collected at the rate prescribed by subsection A, paragraph 1 of this section
from persons on account of engaging in business under the business
classification listed in subsection A, paragraph 1, subdivision (h) of this
section and that are subject to any distribution required by section 42-5032.02
is designated as distribution base for the purposes of section 42-5029
until the total amount subject to distribution pursuant to section 42-5032.02
has reached the maximum amount prescribed by section 42-5032.02,
subsection C.� Thereafter, twenty percent of the remaining tax revenues is
designated as distribution base for the purposes of section 42-5029 as
provided by subsection B of this section.
K. Subject to section 48-4238, beginning on
October 1, 2025 through December 31, 2055, zero percent of the tax revenues
that are collected at the rate prescribed by subsection A, paragraph 1 of this
section from persons engaging in business under the business classifications
listed in subsection A, paragraph 1, subdivisions (h), (i), (j) and (l) of this
section and that are subject to transmittal required by section 42-5032.03
is designated as distribution base for the purposes of section 42-5029.�
Beginning January 1, 2056, twenty percent of the remaining tax revenues
collected at the rate prescribed by subsection A, paragraph 1 of this section
from persons engaging in business under the business classification listed in
subsection A, paragraph 1, subdivision (h) of this section is designated as
distribution base for the purposes of section 42-5029 as provided by
subsection B of this section and forty percent of the remaining tax revenues
collected at the rate prescribed by subsection A, paragraph 1 of this section
from persons engaging in business under the business classifications listed in
subsection A, paragraph 1, subdivisions (i), (j) and (l) of this section is
designated as distribution base for the purposes of section 42-5029 as
provided by subsection C of this section.
END_STATUTE
Sec. 8. Section 42-5010.01, Arizona Revised Statutes, is amended to read:
START_STATUTE
42-5010.01.
Transaction privilege tax; additional rate increment
A. From and after June 30, 2021 through June 30,
2041, in addition to the rates prescribed by section 42-5010, subsection
A, an additional rate increment is imposed and shall be
collected. The additional tax rate increment is levied at the rate
of six-tenths of one percent of the tax base of every person engaging or
continuing in this state in a business classification listed in section 42-5010,
subsection A, paragraph 1.
B. The taxpayer shall pay taxes pursuant to this
section at the same time and in the same manner as under section 42-5010,
subsection A.� The department shall separately account for the revenues
collected with respect to the rates imposed by this section, and the state
treasurer shall distribute all of those revenues in the manner prescribed by
section 42-5029.02.�
The rates imposed by this section are
not considered local revenues for purposes of article IX, section 21,
Constitution of Arizona.
END_STATUTE
Sec. 9.
Conditional exactment; applicability
This act does not become effective
unless the Constitution of Arizona is amended by a vote of the people at the
next general election by passage of Senate Concurrent Resolution ____, fifty-seventh
legislature, second regular session, relating to expenditure limitations and
applies to fiscal years beginning from and after June 30, 2027.
Sec. 10.
Requirements for
enactment; three-fourths vote
Pursuant to article IV, part 1,
section 1, Constitution of Arizona, sections 15-1285 and 42-5010, Arizona
Revised Statutes, as amended by this act, are effective only on the affirmative
vote of at least three-fourths of the members of each house of the legislature.