2005 Arizona Revised Statutes - Revised Statutes §42-17005  Adjustments to levy

A. If a governing body of a political subdivision receives written notice of a violation of its allowable levy limit or truth in taxation limit under section 42-17003, and has not appealed the commission's decision pursuant to section 42-17004, the governing body shall correct its primary property tax levy and tax rate to properly reflect the allowable levy for the current year. The county board of supervisors shall make the necessary adjustments to the political subdivision's primary property tax levy and tax rate to ensure that the corrected information is contained in the assessment and tax roll that is transmitted to the county treasurer pursuant to section 42-18003. If the governing body receives the notice after it is too late to correct the levy in the current year, the difference between the amount actually levied and the allowable primary property tax levy shall be set aside in a special fund and used to reduce the primary property taxes levied in the following year.

B. If, after a hearing under section 42-17004, the commission determines that errors were made in the calculation of the maximum allowable primary property tax levy limit pursuant to section 42-17051, subsection A, the commission shall have five days to notify the governing board of a county, city, town or community college district of the corrected levy limit. The commission shall also notify the county board of supervisors within five days. The corrected maximum allowable primary property tax levy shall be used in section 42-17051, subsection A, paragraph 1 in determining the following year's levy limit.

C. If, after a hearing under section 42-17004, it is impossible for the board of supervisors to correct a property tax levy in the current year, the political subdivision shall hold the difference between the amount the political subdivision actually levied and the allowable primary property tax levy prescribed by the commission in a separate fund to be used to reduce the primary property taxes levied by the political subdivision in the following year.

D. If the commission discovers that it has made an error in computing the levy limit after September 15, it shall notify the political subdivision's governing body about the error. The error shall be corrected as prescribed in subsection A of this section. If the error results in the maximum allowable primary property tax levy being raised, the corrected maximum allowable primary property tax levy shall be used in section 42-17051, subsection A, paragraph 1 in determining the following year's levy limit.

E. If, on appeal under section 42-17004, subsection E, the ruling of the court provides for a primary property tax levy in an amount that is less than the amount levied by the political subdivision, the political subdivision shall hold the difference between the amounts in a separate fund to be used to reduce the primary property taxes levied by the political subdivision in the following year.