AZ HB2177

Repeals one version of Arizona Revised Statutes Section 9-500.11 and amends another version to establish economic development reimbursement zones for cities and towns.

Allows cities and towns to establish economic development reimbursement authorities with consent of other member entities (county, school district, and other political subdivisions) to fund economic development activities through tax increment revenue.

Requires reimbursement zone plans to be in writing, not exceed 20 years, include public purpose statements, zone boundaries not greater than 5 square miles or 1% of city/town area, development strategy, and independent third-party verification of findings.

Establishes committee approval process requiring unanimous committee approval before authority can approve reimbursement zone plans at public hearings, with authority making specific findings about expected improvements and employment/value impacts.

Specifies that tax increment revenues must be placed in separate funds, used only for reimbursable improvements (infrastructure and capital improvements), and cannot be used for debt service or improvements outside the reimbursement zone except utility infrastructure with substantial nexus.