The bill SB1747 proposes significant changes to Arizona's taxation laws as part of the fiscal year 2025 budget reconciliation. It caps the Credit for Corporate Contributions to School Tuition Organizations (STOs) for Low-Income Students at $135 million annually, expands scholarship eligibility for students in foster care, and imposes restrictions on STOs if the credit cap is deemed unenforceable. Additionally, it requires county boards to reduce school district property tax levies in certain areas and outlines procedures for districts affected by a specific tax judgment.

Moreover, SB1747 modifies deadlines and tax credit limits, notably extending the deadline for a certification process for third-party providers to 2028 and increasing the tax credit cap from $10 million to $135 million for fiscal years 2024-2025 and beyond. It also allows affected school districts to issue tax anticipation notes and adjust state aid based on assessed valuation changes, mandates transparency in tax bills regarding litigation-related property tax increases, and includes a sunset provision for certain sections after December 31, 2030.

Statutes affected:
Introduced Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901
Senate Engrossed Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901