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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: ED DP 6-5-1-0 |
HB 2383: school districts; leases; housing development
Sponsor: Representative Gress, LD 4
House Engrossed
Overview
Mandates a school district governing board (governing board) spend the proceeds from the lease of school property for the payment of bonded indebtedness or to reduce school district taxes. Allows a governing board to lease school property for a housing development project. Modifies property tax exemptions for property and buildings leased from a school district.
History
A governing board may: 1) enter into leases or lease-purchase agreements for school buildings or grounds for less than 20 years without voter approval, unless the lease is to construct school buildings, in which case voter approval is required; 2) enter into leases or lease-purchase agreements for school buildings or grounds for between 20 and 99 years with voter approval, though statute outlines specific conditions in which voter approval is not required; 3) enter into option agreements to purchase school sites; and 4) lease school sites without voter approval if totally funded from specified sources. A governing board, or the superintendent or chief administrative officer with governing board approval, may lease school property to any person, group or organization for any lawful purpose in the interest of the community and for a reasonable fee (A.R.S. §§ 15-342, 15-491 and 15-1105).
A school district may expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or to reduce school district taxes. Statute details the permissible uses of such monies based on a school district's percent of outstanding bonded indebtedness. However, the restrictions on the permissible uses of proceeds from the sale or lease of school property do not apply to proceeds from specified sources (A.R.S. § 15-1102).
Statute exempts the following properties from property taxes: 1) school buildings and other buildings that are used for education, including the land, if used for education and not used or held for profit; 2) property and buildings if leased from a school district pursuant to a lease or lease-purchase agreement that is for less than 20 years without voter approval or for between 20 and 99 years with voter approval; and 3) property used exclusively for affordable rental housing if prescribed criteria are met (A.R.S. §§ 42-11104 and 42-11133).
Provisions
1. Requires, rather than allows, a governing board, or the superintendent or chief administrative officer with governing board approval, to spend the proceeds from the lease of school property for the:
a. payment of any outstanding bonded indebtedness of the school district; or
b. reduction of school district taxes. (Sec. 1)
2. Allows a governing board to lease, or approve the lease, of school property to any person for a housing development project subject to existing statutory requirements relating to the lease of school property. (Sec. 2)
3. Stipulates that property and buildings that are leased from a school district are:
a. eligible for a property tax exemption for educational and library property only if the property and buildings are used for education purposes; and
b. not eligible for the property tax exemption for affordable housing projects. (Sec. 2, 3)
4. Makes technical and conforming changes. (Sec. 1, 2, 3)
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8. Initials CH/JD HB 2383
9. 2/25/2026 Page 0 House Engrossed
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