AZ SB1274

Counties, cities, and towns that received American Rescue Plan Act section 603 monies and proposed primary property tax increases for tax year 2022 must use those federal funds to reduce the levy to match 2021 tax year levels (excluding new construction).

For tax year 2023, jurisdictions must use remaining federal monies to reduce the proposed levy to match what the 2022 levy would have been without the reduction required in subsection A.

Jurisdictions may spend excess federal monies received under section 603 of the American Rescue Plan Act at their discretion at the end of each tax year.

Beginning in tax year 2024, jurisdictions may disregard the federal monies when calculating primary property tax levies, treating them as if they were not used for the prior two years' reductions.

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