HB 2456 Summary

• Creates revenue allocation districts as a new economic development mechanism allowing Arizona cities and towns to finance infrastructure and development projects through increment revenues from property tax and transaction privilege tax.

• Districts are established by city/town governing bodies with a five-member appointed board of directors (or governing body can serve as board) following a public hearing process requiring petition signatures from owners of at least 51% of proposed district land area.

• Districts can finance projects including land acquisition, redevelopment, relocation assistance, capital improvements, and infrastructure designed to increase commerce or industry development using revenue bonds, general obligation bonds, and tax increment revenues.

• Property tax increments are calculated by comparing current assessed values to a base roll established at district formation, with only increases allocated to the district; transaction privilege tax increments are the difference between current collections and a base year amount.

• Districts have corporate powers including ability to enter contracts, sell/lease property, establish user fees, issue bonds (with voter approval for general obligation bonds), and maintain separate accounting with public records and open meeting requirements.