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REFERENCE TITLE: property tax increment; affordable housing |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SB 1555 |
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Introduced by Senator Rogers
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AN ACT
Amending Title 11, chapter 2, article 13, Arizona Revised Statutes, by adding section 11-382; amending title 42, chapter 13, article 2, Arizona Revised Statutes, by adding section 42-13057; relating to housing.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
The article heading of title 11, chapter 2, article 13, Arizona Revised Statutes, is changed from "COUNTY HOUSING TRUST FUND" to "COUNTY HOUSING FUNDS".
Sec. 2. Title 11, chapter 2, article 13, Arizona Revised Statutes, is amended by adding section 11-382, to read:
11-382. Housing affordability fund
A. The board of supervisors of each county shall establish a housing affordability fund consisting of monies deposited pursuant to section 42-13057.
B. Monies in the fund may be used to provide:
1. Down payment or closing costs assistance for residential property purchased by an employee of any of the following:
(a) This state or a city, town, county, school district or other political subdivision of this state.
(b) A charter school.
(c) A public safety, health care or education employer.
2. Grants, loans or incentives to builders or developers for constructing more affordable housing units, including:
(a) Residential units with a reduced square footage.
(b) Entry-level housing.
(c) Workforce housing.
(d) Middle housing.
3. Infrastructure or fee offsets for affordable housing development.
C. A county may enter into an intergovernmental agreement with a city or town or a housing authority to administer the fund and distribute the monies in the fund.
d. Monies in the fund shall be accounted for separately from other monies of the county and may not be used to supplant funding for EXISTING housing programs or for general governmental purposes.
Sec. 3. Title 42, chapter 13, article 2, Arizona Revised Statutes, is amended by adding section 42-13057, to read:
42-13057. Valuation of new residential construction
A. Notwithstanding any other law, the county assessor shall value newly constructed residential property within sixty days after the sale of the property.
B. the taxpayer shall pay the amount of tax on the property based on the new valuation on a prorated basis based on the days remaining in the tax year.
C. The county treasurer shall deposit an amount equal to the difference between the property's new valuation and the property's initial valuation in a housing affordability fund established pursuant to section 11-382.
D. The deposit required by subsection C of this section applies only to property tax revenues attributable to the period between the initial valuation of newly constructed residential property and the tax year in which the property is first fully assessed and taxed at the property's new valuation. Beginning the first tax year in which the property is fully taxed at the property's new valuation, all property tax revenues shall be distributed to applicable taxing jurisdictions in the same manner as other property tax revenues.