AZ HB2349

Amends school finance law to subtract a percentage of school district ending balances from equalization assistance payments, phasing in over five years: 20% for FY 2013-2014, increasing by 20% annually to 100% for FY 2017-2018.

Allocates increasing amounts of state aid for property tax reduction on class one properties across five fiscal years, ranging from $144 million (FY 2013-2014) to $720 million (FY 2017-2018), distributed to counties for pro rata reduction of property taxes on classes two through nine.

Temporarily reduces the assessment ratio for class one property from 20% to 17.6% in tax year 2013-2014, declining by 1.9 percentage points annually until reaching 10% in tax year 2017-2018.

Clarifies that monies allocated for class three property tax reduction shall be used exclusively for that purpose, while funds for classes two through nine are remitted to county treasurers.

Applies these provisions only for fiscal years 2013-2014 through 2017-2018, with the ending balance subtraction limited to maintenance and operation funds in the final year (FY 2017-2018).