2017 Arizona Revised Statutes
Title 15 - Education
§ 15-980 Uncollected property tax; property tax loss; supplemental state aid
15-980. Uncollected property tax; property tax loss; supplemental state aid
A. A school district is eligible for supplemental state aid pursuant to this section if a county treasurer certifies to the school district after January 1 that, in the treasurer's reasonable belief, more than ten percent of the primary property tax revenues that the school district is entitled by law to receive pursuant to section 42-18052 will not be remitted to the district due to one of the following circumstances:
1. Property tax delinquencies.
2. A loss of property tax revenue resulting from a decrease in assessed valuation due to a natural disaster such as fire or flood.
B. On receiving a certificate pursuant to subsection A of this section, the school district may apply to the department of education for supplemental state aid. The application shall include the county treasurer's certified estimate of the total amount of uncollected primary property taxes or the amount of lost property tax revenue for the school district for the tax year payable in the current fiscal year.
C. Within forty-five days after receiving a complete and correct application, the state board of education shall pay to the school district from amounts appropriated for state aid the amount determined in subsection B of this section. The department of education shall notify the county treasurer and the county school superintendent of the amount and the date of the payment of the supplemental state aid. Supplemental state aid paid under this section shall be excluded from the calculation made pursuant to section 15-973, subsection C.
D. The superintendent of a school district that receives supplemental state aid due to delinquent property taxes pursuant to subsection A, paragraph 1 of this section shall report to the department of education between May 5 and May 25 the actual amount of primary property taxes that was not collected and remitted to the district during the current fiscal year, based on information from the county treasurer. If the amount of supplemental state aid paid pursuant to subsection C of this section exceeds the actual amount of the uncollected primary property taxes that the district is entitled to receive, the state board of education shall deduct the difference between the amount of supplemental state aid paid and the amount of the uncollected primary property taxes from the June 15 and, if necessary, subsequent apportionments of state aid pursuant to section 15-973, subsection B.
E. Beginning on June 1 after the payment of supplemental state aid, the county school superintendent shall report quarterly to the department of education the amount of any payments of delinquent primary property taxes received by the district during the previous quarter with respect to a tax year for which the supplemental state aid was paid and not previously deducted from state aid pursuant to subsection D of this section. The department shall deduct the amount reported from the next apportionment of state aid to the district pursuant to section 15-973, subsection B until the supplemental state aid is repaid. If the district does not receive any apportionment pursuant to section 15-973, subsection B, the department shall direct the school district superintendent to pay that amount to the state treasurer for deposit in the state general fund.
F. A school district that receives supplemental state aid due to loss of assessed valuation pursuant to subsection A, paragraph 2 of this section may receive supplemental state aid for up to three fiscal years. The amount of supplemental state aid shall be reduced each year by one-third and any increased property tax revenue due to higher assessed valuation.
