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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
schools; state aid; adjustment
Purpose
Requires the Superintendent of Public Instruction (SPI), subject to review by the Joint Legislative Budget Committee (JLBC), to adjust state aid for a school district in the current year if requested by a school district governing board due to changes in assessed valuation as outlined.
Background
If the SPI determines that the calculation of state aid or budget limits for a school district or charter school within the previous three years does not conform with statutory requirements, the SPI requires the errors to be corrected. Errors in the calculation of state aid must be corrected by increasing or decreasing the state aid to the school district or charter school in the year or years in which the correction is made. Errors in the calculation of the school district's or charter school's budget limits must be corrected at a public hearing where the governing board reduces or increases its budget by the amount of the correction to be made for that year.
For corrections made in the current year or budget year, the SPI may approve corrections partly in one year and partly in the subsequent year. Subject to the review by the JLBC, the SPI must adjust state aid for a school district in the current year if the school district's governing board requests the recalculation of state aid for a prior year due to a change in assessed valuation that occurred as the result of a property tax appeal court judgement (A.R.S. § 15-915).
A person who is not satisfied with the valuation or classification of the person's property by a county assessor may either petition the assessor for review or appeal to a tax court. If the county assessor denies all or part of a petition, the petitioner may appeal the assessor's decision to a county board of equalization (county BOE) or the State Board of Equalization (SBOE) (A.R.S. §§ 42-15104 and 42-16056).
For counties with a population of fewer than 500,000 persons, the county
board of supervisors constitutes the county BOE. A
county BOE is not established in counties with a population of more than
500,000 persons. The SBOE is an independent agency that is not subject to the
supervision or control of the Arizona Department of Revenue (A.R.S. §§ 42-16102
and
42-16152).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
a) a decision by a county BOE;
b) a decision by the SBOE; or
c) the correction of a property tax error.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date, retroactive to July 1, 2019.
Amendments Adopted by the House of Representatives
· Requires the SPI, subject to review by the JLBC, to adjust state aid for a school district in the current year if a school district governing board requests the recalculation of state aid for a prior year due to a change in assessed valuation that occurred as a result of a statutorily outlined property tax error correction.
Senate Action House Action
APPROP 2/9/21 DP 10-0-0 WM 3/10/21 DPA 10-0-0-0
3rd Read 2/22/21 30-0-0 3rd Read 3/18/21 60-0-0
Prepared by Senate Research
March 18, 2021
LMM/DH/gs/kja