AZ SB1221

Establishes a distribution freeze on urban revenue sharing funds for fiscal years 2011-2012 through 2029-2030, capping city and town allocations at the net proceeds of state income taxes from fiscal year 2009-2010.

Any excess revenue sharing amounts beyond the fiscal year 2009-2010 baseline shall be credited to the state general fund and used to pay state lease-purchase agreements and supplant transaction privilege tax payments.

Beginning in fiscal year 2030-2031, the distribution freeze expires and full urban revenue sharing distributions resume to incorporated cities and towns based on population proportions.

Maintains existing provisions for monthly distribution of one-twelfth of each city or town's entitlement by the state treasurer and protections for newly incorporated municipalities.

Preserves the state treasurer's authority to withhold distributions for defaulting political subdivisions under greater Arizona development authority agreements.