AZ HB2726

Amends Arizona Revised Statutes section 42-5205 to modify the distribution of severance tax revenues.

Allocates 2.5 percent of the 80 percent distribution base to cities and towns with populations under 15,000 located in counties with populations under 900,000, distributed proportionally by population for any municipal purpose.

Directs the remaining portion of the 80 percent distribution base to be distributed pursuant to section 42-5029, subsection D.

Maintains the existing allocation of 20 percent of severance tax revenue to the state general fund for public educational purposes.

Effective date: June 30, 2023.