AZ SB1281

Amends Arizona Revised Statutes section 48-616 to allow municipalities to consolidate two or more existing improvement districts (formed under sections 48-615, 48-617, or 48-616) into a single district through an ordinance or resolution process.

Requires consolidation petitions to be signed by a majority of real property owners in each district being consolidated, with districts remaining contiguous and no new territory added through consolidation.

Mandates public notice and hearing at least ten days before consolidation consideration, including information on district boundaries, assessed values, estimated tax changes, and potential benefits and injuries from consolidation.

Specifies that consolidated districts take effect July 1 following timely notice to the Department of Revenue, county assessor, and county treasurer by June 1, with remaining liabilities paid and funds transferred from separate districts.

Permits new territory to be added to consolidated districts through the same improvement notice process used for other districts, with protests limited to property owners in the territory proposed for addition.