This bill proposes updates to the Arizona Revised Statutes concerning municipal improvement financing by introducing a new article that defines key terms such as "assessed value," "development plan," and "municipal improvement area." It establishes a framework for municipalities to designate improvement areas, develop plans, and finance projects through tax increment financing, while ensuring compliance with existing laws. The bill also outlines procedures for establishing these areas, including public hearings, joint review board approvals, and the adoption of development and financial plans.

Significant changes include the prohibition of using tax increment revenues for debt service on bonds or to bypass other tax laws, as well as the requirement for municipalities to maintain separate tax increment funds for each improvement area. Additionally, municipalities must report annually to a joint review board on the status of improvement areas, including independent audits for compliance. The bill clarifies the termination process for improvement areas, detailing the municipality's liability for unpaid costs and notification requirements. Overall, these updates aim to improve transparency, accountability, and management of tax increment financing in municipal projects.

Statutes affected:
Introduced Version: 42-17052, 42-17251, 9-442.05, 9-442.08, 9-442.03, 42-11001, 9-442.07, 9-442.01, 9-442.02, 9-442.04, 9-442.06, 9-442.12, 42-17255, 9-442.09, 9-442.10, 16-204, 9-442.11, 9-442.13, 42-17051, 48-807, 42-17053, 15-991, 41-1276