AZ HB2060

Municipalities with populations under 20,000 that do not levy primary property taxes may establish and collect a fire or emergency medical services fee after voter approval, if another municipality provides those services.

Municipalities must calculate fees based only on actual square footage of buildings in fixed amounts within defined ranges, excluding capital expenses and exempting public schools (including charter schools) and church sanctuaries.

Municipalities must prepare a written report supporting the fee, adopt a notice of intention at a regular governing body meeting, and hold a public hearing at least 30 days after publishing notice in a newspaper of general circulation.

Annual fee increases (without voter approval) are limited to the same percentage increase in operating expenses that the service-providing municipality experiences, as prescribed in their service agreement.

County treasurers may enter into agreements with municipalities to collect these fees using tax collection methods, with compensation directly related to collection expenses governed by Arizona Revised Statutes section 11-496.