SB1747 is a budget reconciliation bill that implements changes to Arizona's taxation laws for the FY 2025 state budget. The bill caps the Credit for Corporate Contributions to School Tuition Organizations (STOs) at $135 million annually, starting in FY 2025, and expands STO scholarship eligibility to foster care students. It mandates property tax levy reductions for certain school districts and allows for tax anticipation notes or bonds to address tax judgment impacts from Qasimyar v. Maricopa County. Additionally, the bill extends a tax exemption for equipment used in forest product harvesting or processing and delays the requirement for the Arizona Department of Revenue to establish a certification process for third-party providers until January 1, 2028.

The bill increases the aggregate tax credit cap for STOs from $10 million to $135 million for FY 2024-2025 and beyond, removing the previous annual increase rates. It also extends the sales tax exemption for qualifying forest product equipment purchases until December 31, 2026. The bill simplifies language regarding tax administration and includes measures to manage property tax adjustments in response to a specific tax judgment. It also outlines fee assessments and transfers for the Arizona Department of Revenue's tax system modernization project for fiscal year 2024-2025.

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