AZ SB1003

Counties, cities, and towns that received American Rescue Plan Act section 603 funds must use those monies to reduce their 2022 primary property tax levy so it does not exceed the 2021 tax year amount (excluding new construction).

For tax year 2023, entities must use remaining American Rescue Plan funds to reduce the primary property tax levy to the level it would have been in 2022 without the prior year reduction (excluding new construction).

Excess American Rescue Plan funds not needed for tax levy reductions may be spent at the county's, city's, or town's discretion at the end of each tax year.

Starting in tax year 2024, entities may disregard American Rescue Plan funds received and calculate the primary property tax levy as if those funds were not used for prior year reductions.

The Property Tax Oversight Commission shall review primary property tax levy calculations to determine compliance with this section; the act applies retroactively from December 31, 2021, and is repealed December 31, 2026.