The bill HB2173 amends property tax levy calculations for common school districts not within a high school district (Type 03 districts) and changes the distribution of monies collected from these levies. Previously, additional taxes in Type 03 districts were calculated based on the countywide average per pupil equalization base for high school pupils multiplied by the number of resident high school pupils. The new bill requires the levy to be the lesser of a rate equal to the applicable qualifying tax rate or a rate resulting in a levy equal to the statewide average per pupil funding for high school pupils multiplied by the student count. The collected monies, which were added to county aid for equalization assistance, will now be redirected to the State Treasurer for deposit in the state General Fund to aid in school financial assistance.

The bill also excludes the modified qualified tax rate (MQTR) and additional tax in Type 03 districts from the criteria used to determine if a school district's primary property tax rate exceeds the maximum permissible rate. It requires the Arizona Department of Education (ADE) to provide each county board of supervisors with the statewide average per pupil funding for high school pupils and the student count for Type 03 districts. Additionally, the bill includes an emergency clause, making it effective immediately upon the Governor's signature, with retroactive provisions as noted.

Statutes affected:
Introduced Version: 15-971, 15-992, 37-521, 15-947, 15-951, 15-961, 41-1276, 15-447, 15-943, 15-973, 15-255, 15-904, 15-766, 15-767, 42-5029, 42-5029.02, 35-173, 15-972, 15-905, 15-946, 15-945, 15-910, 15-954, 15-949, 15-907, 15-995, 42-16213, 42-17151
House Engrossed Version: 15-971, 15-992, 42-17151, 15-947, 15-951, 15-961, 41-1276, 15-447, 15-943, 15-973, 15-255, 15-904, 15-766, 15-767, 37-521, 42-5029, 42-5029.02, 35-173, 15-972, 15-905, 15-901, 15-946, 15-945, 15-910, 15-954, 15-949, 15-907, 15-995, 42-16213
Senate Engrossed Version: 15-971, 15-992, 42-17151, 15-947, 15-951, 15-961, 41-1276, 15-447, 15-943, 15-973, 15-255, 15-904, 15-766, 15-767, 37-521, 42-5029, 42-5029.02, 35-173, 15-972, 15-905, 15-901, 15-946, 15-945, 15-910, 15-954, 15-949, 15-907, 15-995, 42-16213
Chaptered Version: 15-971, 15-992, 42-17151, 15-947, 15-951, 15-961, 41-1276, 15-447, 15-943, 15-973, 15-255, 15-904, 15-766, 15-767, 37-521, 42-5029, 42-5029.02, 35-173, 15-972, 15-905, 15-901, 15-946, 15-945, 15-910, 15-954, 15-949, 15-907, 15-995, 42-16213