ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
FINAL AMENDED
FACT SHEET FOR H.B. 2702
Rio Nuevo; shared revenue
Purpose
Extends the diversion of state transaction privilege tax revenues to the Rio Nuevo Multipurpose Facilities District for an additional 12 years.
Background
Laws 1990, Chapter 390 authorized Maricopa County to form a county stadium district and impose a transaction privilege tax (TPT) upon the award of a Major League Baseball franchise within the district. Laws 1991, Chapter 285 expanded the authorization to form county stadium districts to any county in which a Major League Baseball organization establishes or seeks to establish a spring training operation. Finally, Laws 1997, Chapter 297 further expanded the county stadium district concept to multipurpose facilities defined as facilities located in the district designed to accommodate sporting and entertainment, cultural, civic, meeting or convention events. This legislation also expanded the ability to form a district between two or more municipalities located within a county and authorized the diversion of 50 percent of state TPT collections generated at the multipurpose facility site or in the construction of the facility that costs at least $200 million for a ten-year period.
Laws 1999, Chapter 172 limited the formation of the expanded county stadium districts for multipurpose facilities and required that in order for a district to qualify to receive state TPT revenues, the municipality in which the multipurpose facility is located pay an equal match by the end of the ten-year period. Laws 1999, Chapter 162 increased the payment of TPT revenue to stadium districts by allowing the diversion of taxes from businesses adjacent to a multipurpose facility site. TPT payments are limited to net new revenues compared to revenues received prior to the year of the election authorizing the district. The Rio Nuevo Multipurpose Facilities District (District), located in the City of Tucson, meets the qualifications of the expanded county stadium district. The District is a downtown redevelopment project, which includes the Tucson Convention Center and proposes new hotels, residential housing, shops and parking.
According to the City of Tucson, an estimated $32.9 million has been contributed to meet the local match requirement and approximately $17.1 million in state TPT revenues has been distributed to the District.
Provisions
1. Extends the diversion of 50 percent of state TPT revenues generated at the multipurpose facility site or in the construction of the facility to the county stadium district, from ten years to July 1, 2025.
2. Prohibits the use of diverted TPT revenues for public buildings, except police, fire or other public safety facilities, tourism offices and office space used for the administration, maintenance and operation of the multipurpose facility.
3. Eliminates the authority for the district to use district funds to acquire land by eminent domain.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Reestablishes the District’s baseline year.
2. Eliminates the District’s authority to use eminent domain using TPT revenues.
3. Eliminates the provision of the bill that allows monies from any governmental entity to be included in the local match requirement.
4. Eliminates the provision of the bill that allows the District to use TPT revenues for the construction, operation, maintenance and repair of roads within and adjacent to the District to serve any incidental and necessary project in the District.
5. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Eliminates the new baseline year.
2. Prohibits TPT revenues from being used for public buildings.
3. Limits the extension of diverted TPT until July 1, 2025.
4. Makes technical and conforming changes.
House Action Senate Action
WM 2/6/06 DP 7-2-0-0 CED 3/22/06 DPA 5-2-1-0
3rd Read 2/21/06 35-18-7-0 FIN 3/28/06 W/D
Final Read 6/21/06 40-16-4-0 3rd Read 6/21/06 17-12-1-0
Signed by the Governor 6/23/06
Chapter 376
Prepared by Senate Research
July 6, 2006
SL/jas