Senate Bill 1398 Summary

• Amends school district revenue control limits by adding $1,500,000 to the general budget limit for school districts with at least 5,000 average daily membership that are ineligible for equalization assistance.

• Repeals section 28-2007, Arizona Revised Statutes, effective December 31, 2020, and establishes a new annual tax on electric, hybrid, and alternative fuel vehicles ($110 for single-fuel vehicles, $44 for multi-fuel vehicles) effective June 30, 2021.

• Modifies property tax rates for school districts and state equalization assistance by reducing the state equalization assistance property tax rate to $0.3520 for tax year 2021 and $0.2776 for tax year 2022, and adjusts assessed valuation percentages for class one property.

• Makes various technical amendments to the Arizona tax code including adjustments to income tax deductions and credits, dependent tax credits (increasing from $100/$25 to $120/$30), and capital gains deductions for investments acquired after December 31, 2019.

• Extends the Arizona job training fund encumbrance deadline and modifies fire district tax levies, allowing increases up to $3.375 per $100 assessed valuation for tax year 2021 and $3.50 for tax year 2022 and thereafter.