This bill proposes to update current statutes by introducing a new Article 4.1 that establishes a framework for Tax Increment Financing Improvement Areas in Arizona. It defines key terms such as "assessed value," "municipal improvement area," and "project costs," and outlines the process for municipalities to designate these areas for development. The bill mandates that a municipal improvement area can be established for up to thirty years, with tax increment revenues diverted to the municipality for financing improvements. It also requires municipalities to adopt a development plan that meets community needs and includes a financial plan detailing project costs and revenue sources.

Additionally, the bill introduces new procedural requirements, including the establishment of a municipal tax increment fund with a dedicated project cost account, and mandates that at least 25% of tax increment revenues be deposited into a housing trust fund for affordable housing. It requires annual reporting to a joint review board, independent audits, and specifies the bond issuance process related to public infrastructure. The bill also clarifies that tax increment revenues must be used exclusively for authorized project costs and cannot be used for debt service or to circumvent tax laws, ensuring compliance with existing regulations while promoting municipal development initiatives.

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