2023 Arizona Revised Statutes › Title 15 - Education › § 15-905.01 - Truth in taxation; calculation; notice and hearing; vote on tax increase

15-905.01.
Truth in taxation;  calculation;  notice and hearing;  vote on tax increase
A. Each school district shall determine its truth in taxation base limit for expenditures as follows:
1. Determine the amounts budgeted in fiscal year 1999-2000 for expenditures in the following categories:
(a) Desegregation pursuant to section 15-910.
(b) Dropout prevention programs.
(c) Career and technical education and vocational education center operations pursuant to section 15-910.01.
(d) Small school adjustments pursuant to section 15-949.
2. The sum of the expenditures in paragraph 1 of this subsection for fiscal year 1999-2000 shall become the truth in taxation base limit.
3. For any year after fiscal year 1999-2000,  a school district whose aggregate budgeted expenditures for the expenditures prescribed in paragraph 1 of this subsection exceed the truth in taxation base limit shall publish a truth in taxation hearing notice that meets the requirements of subsection B of this section. If the amount exceeding the previous truth in taxation base limit is approved by the school district governing board following the hearing prescribed in subsection B of this section,  the excess amount plus the previous truth in taxation base limit becomes the school district's new truth in taxation base limit.
4. If a school district no longer qualifies for one or more of the expenditures prescribed in paragraph 1 of this subsection,  the amount budgeted for the most recent fiscal year in which the school district was eligible for that expenditure shall be deducted from the school district's truth in taxation base limit.
B. For any fiscal year in which a school district governing board budgets an amount that is higher than the truth in taxation base limit calculated pursuant to subsection A of this section,  any fiscal year in which a school district levies any amount for adjacent ways pursuant to section 15-995 or any fiscal year in which the school district levies any amount for liabilities in excess of the school district budget pursuant to section 15-907:
1. The school district shall publish a notice that meets the following requirements:
(a) The notice shall be published once in a newspaper of general circulation in the school district. The publication shall be at least ten but not more than twenty days before the date of the hearing.
(b) The notice shall be published in a location other than the classified or legal advertising section of the newspaper in which it is published.
(c) The notice shall be at least one-fourth page in size and shall be surrounded by a solid black border at least one-eighth inch in width.
(d) The notice shall be in the following form,  excluding the parenthetical explanations,  and with the " truth in taxation hearing - notice of tax increase"  headline in at least eighteen-point type:
Truth in Taxation Hearing
Notice of Tax Increase
In compliance with section 15-905.01,  Arizona Revised Statutes,  _________ school district is notifying its property taxpayers of _________ school district's intention to raise its primary property taxes over the current level to pay for increased expenditures in those areas where the governing board has the authority to increase property taxes for the fiscal year beginning July 1,  ____. The _________ school district is proposing an increase in its primary property tax levy of $_________ (amount of levy increase to pay for truth in taxation base increase,  the amount of the total levy for the adjacent ways fund and amounts for liabilities in excess of the school district budget pursuant to section 15-907).
The amount proposed above will cause _________ school district's primary property taxes on a $100, 000 home to be $_________ (the amount used to pay for the budget year's proposed truth in taxation base limit and adjacent ways levy,  including adjacent ways and liabilities in excess of the school district budget [the amount divided by the current net assessed value available February 10 pursuant to section 42-17052] applied to $100, 000). Without the tax increase,  the total taxes that would be owed would have been $_________ (the amount used to pay for the current year's truth in taxation base limit [the amount divided by the current net assessed value available February 10 pursuant to section 42-17052] applied to $100, 000).
These amounts proposed are above the qualifying tax levies as prescribed by state law,  if applicable. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.
All interested citizens are invited to attend the public hearing on the proposed tax increase scheduled to be held (date and time) at (location).
2. In lieu of publishing the truth in taxation notice,  the governing board may mail the truth in taxation notice prescribed by paragraph 1,  subdivision (d) of this subsection to all registered voters in the district at least ten but not more than twenty days before the date of the hearing.
3. In addition to publishing the truth in taxation notice under paragraph 1 of this subsection or mailing the notice under paragraph 2 of this subsection,  the governing board shall issue a press release containing the truth in taxation notice to all newspapers of general circulation in the school district.
4. The governing board shall consider a motion to levy the increased property taxes by roll call vote.
5. Within three days after the hearing,  the governing board shall mail a copy of the truth in taxation notice,  a statement of its publication or mailing and the result of the governing board's vote under paragraph 4 of this subsection to the property tax oversight commission established by section 42-17002.
6. The governing board shall hold the truth in taxation hearing on or before the adoption of the school district budget under section 15-905.
7. Expenditures for adjacent ways and liabilities in excess of the school district budget do not become part of the school district's truth in taxation base limit.
C. The department of education shall maintain a listing of each school district's truth in taxation base limit and shall verify the accuracy of the school district's computations. A school district governing board shall notify the department of education of any change in the district's truth in taxation base limit.
D. The department of education shall develop a budget form for school districts to show the primary tax rate associated for each of the expenditure categories mentioned in subsection A,  paragraph 1 of this section and for expenditures for adjacent ways pursuant to section 15-995 or any other expenditure in excess of the school district budget pursuant to section 15-907. A school district shall make this information available to the general public at truth in taxation hearings and shall submit the information to the department of education.