HB 2173 — county aid; school districts; revisions

HouseSenate Engrossed House Bill county aid;

revisions State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session CHAPTER 134 HOUSE BILL 2173 AN ACT AMENDING SECTION 15-971, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2022, CHAPTER 317, SECTION 13;

A RATE THAT WOULD RESULT IN A LEVY THAT EQUALS THE countywide STATEWIDE average per pupil equalization base FUNDING for high school pupils multiplied by the number STUDENT COUNT AS DEFINED IN SECTION 15-901 of resident high school pupils in the common school district not within a high school district during the prior school year.

OnON orOR beforeBEFORE JulyJULY 1 ofOF eachEACH year,YEAR, theTHE departmentDEPARTMENT ofOF educationEDUCATION shallSHALL providePROVIDE eachEACH countyCOMMON boardSCHOOL ofDISTRICT supervisorsNOT withWITHIN theA countywideHIGH averageSCHOOL perDISTRICT pupilWITH equalizationTHE base for high school pupils, the number STUDENT COUNT AS DEFINED IN SECTION 15-901 ofOF residentRESIDENT highHIGH schoolSCHOOL pupilsPUPILS inIN theTHE commonDISTRICT schoolDURING districtTHE notPRIOR withinSCHOOL aYEAR. high school district during the prior school year and any other information requested by the county board of supervisors for the purposes of levying the tax prescribed in this subsection.

On or before July 1 of each year, the department of education shall provide each county board of supervisors with the countywide STATEWIDE average per pupil equalization base FUNDING for high school pupils, the number STUDENT COUNT AS DEFINED IN SECTION 15-901 of resident high school pupils in the common school district not within a high school district during the prior school year and any other information requested by the county board of supervisors for the purposes of levying the tax prescribed in this subsection.

FOR THE PURPOSES OF THIS PARAGRAPH, "PER PUPIL FUNDING" MEANS THE AMOUNT CALCULATED PURSUANT TO SECTION 15-943, PARAGRAPH 2, SUBDIVISION (a) FOR GRADES NINE THROUGH TWELVE MULTIPLIED BY THE SUM OF THE FOLLOWING:

(a) DISTRICT ADDITIONAL ASSISTANCE PURSUANT TO SECTION 15-961, SUBSECTIONS A, B AND C FOR A SCHOOL DISTRICT WITH A STUDENT COUNT OF SIX HUNDRED OR MORE IN GRADES NINE THROUGH TWELVE.

(b) THE BASE LEVEL AMOUNT PRESCRIBED BY SECTION 15-901.

5.- 4 - H.B.

2173 5.

Following the recommendation of the county school superintendent and on approval by the county board of supervisors, for a school district that is not eligible for state aid, a rate that would result in a levy that equals any legal amount not levied in the current year as a result of -underestimated 4average -daily H.B.membership in the current year or as a result of a judgment in accordance with section 42-16213.

2173 underestimated average daily membership in the current year or as a result of a judgment in accordance with section 42-16213.

Fix and determine a primary property tax rate and a secondary property tax rate, each rounded to four decimal places on each one hundred dollars- $1005 of- taxableH.B. property shown by the finally equalized valuations of property, less MINUS exemptions, that appear on the tax rolls for the fiscal year, as determined by the assessor on or before February 10 of the tax year pursuant to section 42-17052, and that when extended on those valuations will produce, in the aggregate, the entire amount to be raised by direct taxation for that year.

2173 dollars $100 of taxable property shown by the finally equalized valuations of property, less MINUS exemptions, that appear on the tax rolls for the fiscal year, as determined by the assessor on or before February 10 of the tax year pursuant to section 42-17052, and that when extended on those valuations will produce, in the aggregate, the entire amount to be raised by direct taxation for that year.

The governing body of a county, city, town or community college district shall not fix, levy or assess an amount of primary property taxes -in 5excess -of H.B.the amount permitted by section 42-17051, subsection A, paragraph 7 or section 42-17005 as determined by the property tax oversight commission.

2173 in excess of the amount permitted by section 42-17051, subsection A, paragraph 7 or section 42-17005 as determined by the property tax oversight commission.

Sec.- 6 - H.B.

2173 Sec.

PropertySchool district tax reduction;levy;

20242023 tax year;

transfer;

Each county board of supervisors that levied an additional tax pursuant to section 15-992, subsection B,F, Arizona Revised Statutes, as amendedadded by Laws 2022, chapter 285, section 11, in the 2023 tax year inshall onedirect orthe morecounty commontreasurer schoolto districtstransmit notany withinunexpended aand highunencumbered schoolmonies districtthat shallwere docollected bothpursuant ofto section 15-992, subsection F, Arizona Revised Statutes, as added by Laws 2022, chapter 285, section 11, in the following:2023 tax year to the state treasurer for deposit in the state general fund to aid in school financial assistance.

- 6 - H.B.

2173 1.

Reduce the tax levy in each common school district not within a high school district in the 2024 tax year by an amount determined by the county board of supervisors and approved by the property tax oversight commission.

2.

Direct the county treasurer to distribute any unexpended and unencumbered monies that were collected pursuant to section 15-992, subsection B, Arizona Revised Statutes, as amended by Laws 2022, chapter 285, section 11, in the 2023 tax year to each common school district not within a high school district to offset the reductions prescribed in paragraph 1 of this subsection.

Sec.

8.

Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.

APPROVED BY THE GOVERNOR APRIL 10, 2024.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 10, 2024.