This bill proposes to amend section 42-5041 of the Arizona Revised Statutes, extending the assessment and collection of fees from various local government entities for the integrated tax system modernization project from June 30, 2028, to June 30, 2029. The bill also updates the language regarding the assessment of fees, specifying that the fees will be based on the distribution of state shared revenues and will be assessed not later than October 31 each year. Additionally, it introduces new guidelines for the assessment of fees in fiscal year 2026-2027, capping the total fees at $6,286,300 and detailing the proportional distribution of fees among counties, cities, towns, councils of governments, and regional transportation authorities.

Furthermore, the bill establishes limits on the transfers for the modernization project from collected revenues, setting caps for fiscal year 2026-2027 at $762,300 for subsection E and $169,800 for subsection F. It also clarifies the basis for apportioning funds based on population data from the most recent U.S. decennial census. Overall, the bill aims to refine the existing framework for funding the tax system modernization while ensuring that the financial contributions from local entities are fairly assessed and distributed.