By Asha Devineni

Legislative Update Week of February 26

Committees have resumed hearing bills this week. March 23rd will be the last day for House consideration of Senate bills and Senate consideration of House bills.

The following bills are of note:

  • HB2126 government property; abatement; slum; blight will be heard in the Senate Finance Committee on Wednesday (3/14).
  • SB1147 county excise tax for transportation was heard in the House Transportation and Infrastructure Committee on Thursday (3/8). This bill would allow the board of supervisors of a county with a population of 400,000 persons or less to submit to the voters a transportation plan funded by an excise tax that is in addition to a county transportation excise tax. This passed out of committee with a vote of 7-0.

By Laura Franco French

Legislative Update Week of March 2

Committees have resumed hearing bills this week. March 23rd will be the last day for House consideration of Senate bills and Senate consideration of House bills.

In the House Caucus on Tuesday (2/27), there was a JLBC presentation of the JLBC Baseline and Executive Budget Comparison. A link to this presentation can be found here: https://www.azleg.gov/calendar/0227201807.01H.pdf

The following bills are of note:

  • HB2126: government property; abatement; slum; blight. Modifies the size of the geographical area for a central business district. The bill also modifies the requirements for leases between a prime lessee and a government lessor for which tax is abated. This bill passed the House 58-0 and is ready for the Senate.
  • SB1147: county excise tax for transportation will be heard in the House Transportation and Infrastructure committee on Wednesday (3/7). This bill would allow the board of supervisors of a county with a population of 400,000 persons or less, on a majority vote, to submit to the voters a transportation plan funded by an excise tax that is in addition to a county transportation excise tax.

By Asha Devineni

Legislative Update Week of February 19

March 23rd will be the last day for House consideration of Senate bills and Senate consideration of House bills.

The following bills are of note:

  • HB2005: municipal economic development; sale; lease. Municipal governing bodies are authorized to sell or lease for “economic development activities” land or buildings owned by or under the control of the municipality if specified conditions are met, including that the lease term cannot exceed 25 years, that the land or building is appraised by an experienced appraiser, and that the land is sold or leased at a public auction to the highest responsible bidder after public notice of the sale or lease is given. This bill passed out of the House 32-26 and was referred to the Senate.
  • HB2090: tax credit review; evaluation standard. The standards used by the Joint Legislative Income Tax Review Committee to evaluate tax credits may include whether adequate protections are in place to ensure that the fiscal impact of the credit in future years does not increase substantially beyond the current projections. This bill passed out of the House 57-0 and was referred to the Senate Committee on Finance.
  • HB2116: limitations of actions; dedicated property. Municipalities and counties are prohibited from instituting or maintaining an action or arbitration based on a required permit against a person who develops or develops and sells real property that is dedicated to the municipality or county more than eight years after “substantial completion”of the improvement. This bill passed out of the House 39-21 following the addition of amendments #4028 and #4437
  • HB2126: government property; abatement; slum; blight. Modifies the size of the geographical area for a central business district. The bill also modifies the requirements for leases between a prime lessee and a government lessor for which tax is abated.This bill was heard in the House Ways and Means Committee and there were references to a possible floor amendment that all parties agreed on. This bill was retained on the House COW calendar.
  • HB2158: TPT; additional rate; education. Beginning July 1, 2021, an additional transaction privilege tax (TPT) rate increment is levied at the rate of 0.6 percent of the tax base of the list of business classifications. The State Treasurer is required to distribute the revenues for various public education purposes according to a specified formula, including $86.3 million annually to the Department of Education for increased basic state aid. This legislation effectively makes permanent the additional TPT rate for education approved by the voters as Proposition 301 in November 2000, which will expire June 30, 2021. Amendment #4184 was added to this bill.
  • HB2165: county excise tax for transportation. The board of supervisors of any county is permitted to submit to the voters a transportation plan funded by an excise tax. If approved by the voters, the county is required to levy and the Department of Revenue is required to collect the tax beginning January 1 or July 1, whichever occurs first after voter approval, on the same tax base that applies to other excise taxes in the county.
  • HB2280: universities; lease-back financing. Prohibits ABOR or a corporation formed by a university from entering into a development agreement unless the property improvement is primarily for an academic purpose or student housing. This bill passed out of the committee with a vote of 5-4 and amendment #4071.
  • HB2330: one percent property tax limit; gplet. If a school district qualifies for additional state aid for education in the fiscal year and if all or part of an affected school district is located in a municipality or stadium district in which any government property improvement is located, the Property Tax Oversight Commission is required to determine the full amount of primary property tax that would have been assessed for the tax year by the affected school district against each government property improvement. The State Treasurer must pay the amount computed for each government property improvement to each appropriate school district. The maximum amount of additional state aid for education funded by the state of $1 million per county is deleted. This bill was retained on the House COW calendar.
  • HB2377: teachers’ school supplies; tax credit. Retroactive to January 1, 2018, an individual income tax credit of up to $400 per teacher is established for expenses incurred by a “qualified schoolteacher” (defined as a teacher in kindergarten or grades 1 through 12) for educational supplies and materials purchased by the teacher and used in the teacher’s classroom. If the allowable credit exceeds taxes due, the unclaimed amount of the credit may be carried forward for up to five consecutive tax years. This bill failed to pass 23-31. It will be reconsidered within 14 days.
  • SB1014: municipal zoning; zoning protests. Clarifies that the group of persons authorized to file a protest in writing against a municipal rezoning, which triggers a requirement for the rezoning to obtain a 3/4 vote of the municipal governing body for passage, is the owners of 20 percent or more of the property. This bill passed out of the the Senate with a vote of 23-7 and was referred to the House Local & International Affairs Committee.
  • SB1147: county excise tax for transportation. Permits the board of supervisors of any county to submit to the voters a transportation plan funded by an excise tax. This passed out of the Senate with a vote of 24-6 and is ready for the House.
    • The identical bill (HB2165) listed above, was reconsidered in the Transportation and Infrastructure Committee on Wednesday (2/7).

  • SB1499: community facilities districts; directors. A resolution ordering the formation of a district must state whether the district will be governed by a district board consisting of members of the governing body, ex officio, with two additional members who are initially designated by the owner who owns the largest amount of privately owned acreage in the district and who are appointed by the governing body, or, at the option of the governing body, five directors appointed by the governing body. This bill passed out of the Senate with a vote of 30-0 and is ready for the House.

By Asha Devineni

Legislative Update Week of February 5

All of the deadlines for bills to be introduced have passed. A total of 1,279 bills have been introduced this session. Feb. 16th will be the last day for House consideration of House bills and Senate consideration of Senate bills.

The following bills are of note:

  • HB2116: limitations of actions; dedicated property. Municipalities and counties are prohibited from instituting or maintaining an action or arbitration based on a required permit against a person who develops or develops and sells real property that is dedicated to the municipality or county more than eight years after “substantial completion”of the improvement.
  • HB2126: government property; abatement; slum; blight. For the purpose of statute allowing municipalities to abate taxes for government property improvements in a single central business district, the definition of “central business district” is modified to require the geographical area to be not larger than the greater of 2.1 percent of the total land area within the exterior boundaries of the municipality or 960 acres, instead of not larger than the greater of 5 percent of the total land area or 640 acres. A municipality that has designated a central business district on or before August 31, 2018 is required to modify the district to comply with this change. Within one year after the effective date of this legislation, each municipality is required to review each area within its boundaries that has been designated as slum or blight for over ten years and either renew or terminate the designation.
  • HB2158: TPT; additional rate; education. Beginning July 1, 2021, an additional transaction privilege tax (TPT) rate increment is levied at the rate of 0.6 percent of the tax base of the list of business classifications. The State Treasurer is required to distribute the revenues for various public education purposes according to a specified formula, including $86.3 million annually to the Department of Education for increased basic state aid. This legislation effectively makes permanent the additional TPT rate for education approved by the voters as Proposition 301 in November 2000, which will expire June 30, 2021.
  • HB2165: county excise tax for transportation. The board of supervisors of any county is permitted to submit to the voters a transportation plan funded by an excise tax. If approved by the voters, the county is required to levy and the Department of Revenue is required to collect the tax beginning January 1 or July 1, whichever occurs first after voter approval, on the same tax base that applies to other excise taxes in the county.
  • HB2280: universities; lease-back financing. Prohibits ABOR or a corporation formed by a university from entering into a development agreement unless the property improvement is primarily for an academic purpose or student housing. This bill passed out of the committee with a vote of 5-4 and amendment #4071.
  • SB1014: municipal zoning; zoning protests. Clarifies that the group of persons authorized to file a protest in writing against a municipal rezoning, which triggers a requirement for the rezoning to obtain a 3/4 vote of the municipal governing body for passage, is the owners of 20 percent or more of the property. This bill passed out of the the Senate with a vote of 23-7.
  • SB1147: county excise tax for transportation. Permits the board of supervisors of any county to submit to the voters a transportation plan funded by an excise tax. This passed out of committee with a vote of 7-0.
    • The identical bill (HB2165) listed above, was reconsidered in the Transportation and Infrastructure Committee on Wednesday (2/7).

  • SCR1002: The 2018 general election ballot is to carry the question of whether to amend the state Constitution to require, beginning in 2018, a statewide initiative or referendum that is approved by a vote of the people to be referred to a subsequent vote of the people ten years after the measure’s initial approval. The subsequent vote must be on the question of whether to reauthorize the measure for another ten-year period.
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Legislative Update Week of February 26
Legislative Update Week of March 2
Legislative Update Week of February 19
Legislative Update Week of February 5