A.R.S. tit. 42 ch. 17 — Arizona Revised Statutes Title 42 Chapter 17 — Levy

42-17001. Definitions In this chapter, unless the context otherwise requires: 1. "Commission" means the property tax oversight commission established by section 42-17002. 2. "Fire district" means a fire district established pursuant to title 48, chapter 5. 3. "Political subdivision" means a county, charter county, city, charter city, town, community college district or school district. 42-17002. Property tax oversight commission A. The property tax oversight commission is established to: 1. Further the public confidence in property tax limitations. 2. Provide a uniform methodology for determining those limitations. 3. Provide a continuing review of practices for ensuring a fair and equitable administration of the property tax laws. B. The commission consists of: 1. The director of the department of revenue or the director's designee, who serves as chairman. 2. Four persons who are knowledgeable in the area of property tax assessment and levy, one appointed by the governor and three appointed jointly by the president of the senate and the speaker of the house of representatives. The appointive members' terms are three years. C. An appointment to fill a vacancy on the commission resulting from other than expiration of a term is for the unexpired portion of the term only. D. The department shall provide secretarial and staff support services to the commission. E. The private citizen members of the commission shall receive fifty dollars per day for time spent in performing their duties. F. The commission shall meet at least annually and, in addition, at the call of the chairman. The commission shall meet at such other times and places as convenient or necessary to conduct its affairs and shall render its findings, reports and recommendations in writing to the governor, to the director of the department of revenue and to the legislature. 42-17003. Duties; notification A. The commission shall: 1. Establish procedures for deriving the information required by sections 15-905.01, 15-1461.01 and 42-17107, article 2 of this chapter, section 48-254 and paragraph 4 of this subsection. 2. Review the primary property tax levy of each political subdivision to determine violations of sections 15-905.01, 15-1461.01 and 42-17107 and article 2 of this chapter. 3. Beginning in tax year 2017, review the secondary property tax levy of each special taxing district to determine violations of section 48-254. 4. Review the secondary property tax levy of each county, city, town and community college district to identify violations of constitutional and statutory requirements. 5. Review the secondary property tax levy of each fire district to determine violations of section 48-807. 6. Review for accuracy the tax levy and rate as prescribed by section 15-992. 7. Review the reports made by the department concerning valuation accuracy. 8. Hold hearings to determine the adequacy of compliance with articles 2 and 3 of this chapter. 9. Upon the request of a county, city, town or community college district, hold hearings as prescribed in section 42-17004 regarding the calculation of the maximum allowable primary property tax levy limits prescribed in section 42-17051, subsection A. B. If the commission determines that a political subdivision has violated section 15-905.01, 15-1461.01 or 42-17107 or article 2 of this chapter, that a special taxing district has violated section 48-254, that a fire district has violated section 48-807 or that a school district incorrectly calculated the tax levy and rate as prescribed by section 15-992, on or before September 15 the commission shall notify the political subdivision or district, and the county board of supervisors, in writing, of: 1. The nature of the violation. 2. The necessary adjustment to: (a) The primary property tax levy and tax rate to comply with section 15-905.01, 15-1461.01 or 42-17107 or article 2 of this chapter. (b) The secondary property tax levy and tax rate to comply with sections 48-254 and 48-807. (c) For school districts, the tax levy and rate to comply with section 15-992. C. If the commission determines that a county, city, town or community college district has levied a secondary property tax in violation of constitutional or statutory law, on or before December 31 the commission shall notify in writing the affected political subdivision, the county board of supervisors, the county attorney and the attorney general of the violation. 42-17004. Hearing and appeals of commission findings A. If the commission notifies a political subdivision of a violation of section 15-905.01, 15-1461.01 or 42-17107 or article 2 of this chapter, notifies a special taxing district of a violation of section 48-254, notifies a fire district of a violation of section 48-807 or notifies a school district of an incorrect calculation of the tax levy and rate as prescribed by section 15-992, and the political subdivision, special taxing district or fire district disputes the commission's findings, then on or before October 1 the political subdivision, special taxing district or fire district may request a hearing before the commission to attempt to resolve the dispute. B. A governing body of a county, city, town, community college district, school district or fire district may request a hearing before the commission regarding the calculation of the maximum allowable primary or secondary property tax levy limits prescribed in section 42-17051 or 48-807 or the calculation of the tax levy and rate as prescribed in section 15-992, as applicable. The commission may resolve any disputes. C. The commission shall conduct the hearing as prescribed in title 41, chapter 6, article 10. D. If the dispute is resolved at the hearing, the commission shall immediately notify the county board of supervisors of the proper primary or secondary tax levy and tax rate. E. If a political subdivision, special taxing district or fire district continues to dispute the commission's findings after the hearing under this section, the political subdivision, special taxing district or fire district may: 1. Appeal the matter to tax court within thirty days after the commission renders the decision. 2. Levy primary or secondary property taxes in the amount that the political subdivision, special taxing district or fire district considers to be proper, pending the outcome of the appeal. 42-17005. Adjustments to levy A. If a governing body of a political subdivision or a fire district 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 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 or district's 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 property tax levy shall be set aside in a special fund and used to reduce the 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 primary property tax levy pursuant to section 15-992 or the secondary property tax levy limit pursuant to section 48-807, the commission shall have five days to notify the governing body of the county, city, town, community college district, school district or fire 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. The corrected maximum allowable secondary property tax levy shall be used in section 48-807 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 or fire district shall hold the difference between the amount the political subdivision or district actually levied and the allowable property tax levy prescribed by the commission in a separate fund to be used to reduce the property taxes levied by the political subdivision or district 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 or fire district'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 property tax levy being raised: 1. 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. 2. The corrected maximum allowable secondary property tax levy shall be used for the purposes of section 48-807 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 property tax levy in an amount that is less than the amount levied by the political subdivision or fire district, the political subdivision or district shall hold the difference between the amounts in a separate fund to be used to reduce the property taxes levied by the political subdivision or district in the following year. 42-17051. Limit on county, municipal and community college primary property tax levy A. In addition to any other limitation that may be imposed, a county, charter county, city, charter city, town or community college district shall not levy primary property taxes in any year in excess of an aggregate amount computed as follows: 1. Determine the maximum allowable primary property tax levy limit for the jurisdiction for the preceding tax year. 2. Multiply the amount determined in paragraph 1 of this subsection by 1.02. 3. Determine the assessed value for the current tax year of all property in the political subdivision that was subject to tax in the preceding tax year. 4. Divide the dollar amount determined in paragraph 3 of this subsection by one hundred and then divide the dollar amount determined in paragraph 2 of this subsection by the resulting quotient. The result, rounded to four decimal places, is the maximum allowable tax rate for the political subdivision. 5. Determine the finally equalized valuation of all property, less exemptions, appearing on the tax roll for the current tax year including an estimate of the personal property tax roll determined pursuant to section 42-17053. 6. Divide the dollar amount determined in paragraph 5 of this subsection by one hundred and then multiply the resulting quotient by the rate determined in paragraph 4 of this subsection. The resulting product is the maximum allowable primary property tax levy limit for the current year for all political subdivisions. 7. The allowable levy of primary property taxes for the current fiscal year for all political subdivisions is the maximum allowable primary property tax levy limit less any amounts required to reduce the levy pursuant to subsections B and C of this section. B. Any monies that a political subdivision received from primary property taxation in excess of the sum of the amount of taxes collectible pursuant to section 42-15053, subsection G, paragraph 2 and the allowable levy determined under subsection A of this section shall be maintained in a separate fund and used to reduce the primary property tax levy in the following year. Monies that are received and that are attributable to the payment of delinquent taxes that were properly assessed in prior years shall not be applied to reduce the levy in the following year. C. If, pursuant to section 41-1279.07, the auditor general determines that in any fiscal year a county has exceeded its expenditure limitation, the allowable levy of primary property taxes of the county determined under subsection A of this section shall be reduced in the fiscal year following the auditor general's hearing by the amount of the expenditures that exceeded the county's expenditure limitation. D. The limitations prescribed by this section do not apply to levies made pursuant to article 5 of this chapter. E. The levy limitation for a political subdivision is considered to be increased each year to the maximum permissible limit under subsection A of this section regardless of whether the county, city, town or district actually levies taxes in any year up to the maximum permissible amount. F. For purposes of determining a county's levy limit under this article, remote municipal property, as defined in section 42-15251, is considered to be taxable property in the county. 42-17052. Values furnished by county assessor and fire districts A. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the governing body of the political subdivision or district in the county the values that are required to compute the levy limit prescribed by sections 42-17051 and 48-807. For the purposes of this section, these values shall not be changed for the official calculation of levy limits and tax rates after February 10 without the approval of the property tax oversight commission. These values shall include: 1. The finally equalized valuation of all property, less estimated exemptions, appearing on the tax roll for the current tax year to be used to fix, levy and assess the political subdivision's taxes. 2. The value of the property on the personal property tax roll determined pursuant to section 42-17053. B. On or before February 10 of the tax year, the county assessor shall determine the limited property value for the current tax year of each school district in the county and shall transmit the values to the county school superintendent to assist the superintendent in computing equalization assistance for education as provided in section 15-991. C. On or before February 10 of the tax year, the county assessor shall transmit to the staff of the joint legislative budget committee and to the governor's office of strategic planning and budgeting the values that are required to compute the truth in taxation rates prescribed by section 41-1276. D. On or before February 10 of the tax year, the governing board of each fire district shall transmit to the property tax oversight commission the total assessed value of all property annexed by the district in the preceding calendar year. 42-17053. Estimate of personal property tax roll A. When a tax rate is to be determined and taxes are levied, the county assessor shall make an estimate of the personal property to be added to the tax roll for purposes of computing the property tax rates pursuant to section 42-17151. B. The estimate shall be at least equal to the prior year's taxable personal property value, except that if the assessor has verifiable information that an item or items on the personal property tax roll during the current tax year will not be in the county during the next tax year, the assessor shall not include that item or items in the estimate under this section. 42-17054. Levy limit worksheet A. When the county assessor transmits valuations under section 42-17052, the assessor shall prepare and transmit a final levy limit worksheet to each city, town and community college district that imposes a primary property tax, to each fire district that imposes a secondary property tax and to the property tax oversight commission. B. Each city, town, community college district and fire district shall notify the property tax oversight commission in writing within ten days of its agreement or disagreement with the final levy limit worksheet. 42-17055. Public inspection of values used in computing levy limitation A. On or before February 15 of the tax year, the governing body of each county, city, town, community college district and fire district shall make available for public inspection the values determined in each numbered paragraph of section 42-17051, subsection A and in section 48-807. B. The property tax oversight commission shall not alter the values that have been determined and made available for public inspection under this section unless the county assessor transmits and certifies new values to the governing body. The new values shall be made available for public inspection on the request of any individual. 42-17056. Initial base levy limit if no primary property taxes were levied in the preceding tax year; subsequent levy amount A. If a county, city, town or community college district did not levy primary property taxes in the preceding tax year, the governing body shall submit a proposed amount to be raised by primary property taxes for approval of the voters. B. The election shall be held on the third Tuesday in May before the beginning of the fiscal year in as nearly as practicable the same manner as prescribed by title 35, chapter 3, article 3. The ballot shall state that if the amount is approved by the voters, it will be the base for determining levy limitations for the county, city, town or district for subsequent fiscal years. C. If a majority of the qualified electors voting approve the proposed levy amount for primary property taxes, the levy applicable for the county, city, town or district for the next fiscal year shall be an amount not exceeding the approved amount. D. On acceptance by the voters, the governing body shall send a copy of the approved resolution to the property tax oversight commission. E. If the proposed levy amount is not approved, the county, city, town or community college district shall not levy a primary property tax for that year. F. At least twenty but not more than thirty-five years after the date of an initial approval pursuant to this section, a community college district with a primary property tax levy that was initially established pursuant to this section may resubmit a proposed amount to be raised by primary property taxes for approval by the voters. The proposed amount must be less than or equal to two times the otherwise authorized levy amount for the same year. The election shall be conducted as prescribed in subsection B of this section. If a majority of the qualified electors voting: 1. Approve the proposed levy amount, the levy applicable for the district for: (a) The first tax year following approval pursuant to this paragraph must be less than or equal to the previously approved amount plus one-third of the difference between the previously approved amount and the amount approved pursuant to this paragraph. (b) The second tax year following approval pursuant to this paragraph must be less than or equal to the previously approved amount plus two-thirds of the difference between the previously approved amount and the amount approved pursuant to this paragraph. (c) The third tax year following approval pursuant to this paragraph and each subsequent tax year must be less than or equal to the amount approved pursuant to this paragraph. 2. Disapprove the proposed levy amount, the district shall levy a primary property tax based on the previously authorized levy and may not resubmit another proposed amount until at least two years after the proposed levy amount was disapproved. G. This section does not apply to community college tuition financing districts formed pursuant to section 15-1409, except that the property tax oversight commission shall set a property tax levy limit that is not less than the amount required pursuant to section 15-1409, subsection C. 42-17057. Computing new levy limits in the case of county division or consolidation; election on revised levy limit A. In the event of a division of a county into two or more new counties or the consolidation of counties, the property tax oversight commission shall determine the maximum allowable levy of primary property taxes in each new county for the first full fiscal year after the new county governments are established by: 1. Computing the maximum levy allowable for the fiscal year under section 42-17051 for the old county or counties, assuming no division or consolidation had occurred. 2. Assigning that maximum amount to the new county, in the case of a consolidation, or apportioning that maximum amount among the new counties, in the case of a division, according to their respective net assessed limited property valuations. B. The amounts thus assigned to the new counties are the levy limits for purposes of this article for that fiscal year. C. On or before April 1 of the first full fiscal year after the new county government is established, the board of supervisors of a new county, by a two-thirds vote, may call a special election to submit a revised levy limit to the qualified electors of the county. The special election shall be held on the third Tuesday in May. Immediately after calling the election the board shall publicize and distribute to the registered voters of the county information regarding the date and polling places of the election and a comparison of the current levy limit and the proposed levy limit. The ballot shall be printed with the question "Shall the proposed levy limit be adopted for _______________ county?" followed by squares marked "yes" and "no" in which the voter may indicate a vote for or against the proposition. If a majority of the voters voting: 1. Approves the proposed levy limit, it shall be applied to the county for all purposes under this article for the next fiscal year and is the basis from which to determine the levy limit under section 42-17051 for subsequent fiscal years. 2. Rejects the proposed levy limit, the levy limit for the county assigned pursuant to subsection A of this section is the basis from which to determine the levy limit under section 42-17051 for subsequent fiscal years. 42-17058. Values for computing levy limit in the case of a merger of a community college district with a contiguous county If an existing community college district merges with a contiguous county that is not a part of a community college district, the values used in computing the levy limit under section 42-17051 for the first year of the new district shall be: 1. For section 42-17051, subsection A, paragraph 2, the sum of the values of the existing community college district and the values of the contiguous county that is not a part of a community college district. 2. For section 42-17051, subsection A, paragraph 1, the maximum allowable primary property tax levy for the existing community college district for the preceding year plus the amount of out county tuition paid by the contiguous county that is not part of a community college district in the preceding year. 42-17101. Annual county and municipal financial statement and estimate of expenses On or before the third Monday in July each year the governing body of each county and incorporated city or town shall prepare: 1. A full and complete statement of the political subdivision's financial affairs for the preceding fiscal year. 2. An estimate of the different amounts that will be required to meet the political subdivision's public expense for the current fiscal year entered in the minutes of the governing body and containing the items prescribed by section 42-17102. 3. A summary schedule of estimated expenditures and revenues that shall be: (a) Entered in the minutes of the governing body. (b) Prepared according to forms supplied by the auditor general. 42-17102. Contents of estimate of expenses A. The annual estimate of expenses of each county, city and town shall include: 1. An estimate of the amount of money required for each item of expenditure necessary for county, city or town purposes, which must include, by fund: (a) Beginning in fiscal year 2013-2014, the estimated number of full-time employees. (b) Beginning in fiscal year 2013-2014, the total estimated personnel compensation, which shall separately include the employee salaries and employee related expenses for retirement costs and health care costs. 2. The amounts necessary to pay the interest and principal of outstanding bonds. 3. The items and amounts of each special levy provided by law. 4. An amount for unanticipated contingencies or emergencies. 5. A statement of the receipts for the preceding fiscal year from sources other than direct property taxes. 6. The amounts that are estimated to be received during the current fiscal year from sources other than direct property taxes and voluntary contributions. 7. The amounts that were actually levied and the amounts that were actually collected for county, city or town purposes on the primary and secondary property tax rolls of the preceding fiscal year. 8. The amounts that were collected through primary property taxes and secondary property taxes levied for the years before the preceding fiscal year. 9. The amount that is proposed to be raised by direct property taxation for the current fiscal year for the general fund, bonds, special assessments and district levies. 10. The separate amounts to be raised by primary property tax levies and by secondary property tax levies for the current fiscal year. 11. The amount of voluntary contributions estimated to be received pursuant to section 48-242, based on the information transmitted to the governing body by the department of revenue. 12. The maximum amount that can be raised by primary property tax levies by the county, city or town pursuant to article 2 of this chapter for the current fiscal year. 13. The amount that the county, city or town proposes to raise by secondary property tax levies and the additional amounts, if any, that the county, city or town will levy pursuant to the authority given to the governing body by the voters at an election called pursuant to article 5 of this chapter. 14. The property tax rate for county, city or town purposes for the preceding fiscal year for the primary property tax and the secondary property tax. 15. The estimated property tax rate for county, city or town purposes for the current fiscal year for the primary property tax and the secondary property tax. 16. The expenditure limitation for the preceding fiscal year and the total amount that was proposed to be spent for the preceding fiscal year. 17. The total expenditure limitation for the current fiscal year. 18. The amount of monies received from primary property taxation in the preceding fiscal year in excess of the maximum allowable amount as computed pursuant to article 2 of this chapter. B. The estimate shall be fully itemized according to forms supplied by the auditor general showing under separate headings: 1. The amounts that are estimated as required for each department, public office or official. 2. A complete disclosure and statement of the contemplated expenditures for the current fiscal year, showing the amount proposed to be spent from each fund and the total amount of proposed public expense. C. The total of amounts proposed in the estimates to be spent shall not exceed the expenditure limitation established for the county, city or town. 42-17103. Public access to estimates of revenues and expenses; notice of public hearing; access to adopted budget A. The governing body of each county, city or town shall publish the estimates of revenues and expenses, or a summary of the estimates of revenues and expenses, and a notice of a public hearing of the governing body to hear taxpayers and make tax levies at designated times and places. The summary shall set forth the total estimated revenues and expenditures by fund type, truth in taxation calculations and primary and secondary property tax levies for all districts. A complete copy of the estimates of revenues and expenses shall be made available at the city, town or county libraries and city, town or county administrative offices and shall be posted in a prominent location on the official website of the city, town or county no later than seven business days after the estimates of revenues and expenses are initially presented before the governing body. A complete copy of the budget finally adopted under section 42-17105 shall be posted in a prominent location on the official websites no later than seven business days after final adoption. B. Beginning with fiscal year 2011-2012, both the estimates of revenues and expenses initially presented before the governing body and the budget finally adopted under section 42-17105 shall be retained and accessible in a prominent location on the official website of the city, town or county for at least sixty months. C. The summary of estimates and notice, together with the library addresses and websites where the complete copy of estimates may be found, shall be published once a week for at least two consecutive weeks after the estimates are tentatively adopted in the official newspaper of the county, city or town, if there is one, and, if not, in a newspaper of general circulation in the county, city or town. D. If a truth in taxation notice and hearing is required under section 42-17107, the governing body may combine the notice under this section with the truth in taxation notice. 42-17104. Public hearing on expenditures and tax levy A. The governing body of each county, city or town shall hold a public hearing on or before the fourteenth day before the day on which it levies taxes as stated in the notice under section 42-17103. Any taxpayer may appear and be heard in favor of or against any proposed expenditure or tax levy. B. If a truth in taxation notice and hearing is required under section 42-17107, the governing body may combine the hearing under this section with the truth in taxation hearing. 42-17105. Adoption of budget A. After the hearing on estimates under section 42-17104 is concluded, the governing body shall convene in a special meeting and finally determine and adopt estimates of proposed expenditures for the purposes stated in the published proposal. B. The adopted estimates constitute the budget of the county, city or town for the current fiscal year. C. The total amounts that are proposed to be spent in the budget shall not exceed the total of amounts that were proposed for expenditure in the published estimates. 42-17106. Expenditures limited to budgeted purposes; transfer of monies A. Except as provided in subsection B, a county, city or town shall not: 1. Spend money for a purpose that is not included in its budget. 2. Spend money or incur or create a debt, obligation or liability in a fiscal year in excess of the amount stated for each purpose in the finally adopted budget for that year, except as provided by law, regardless of whether the county, city or town has received at any time, or has on hand, monies or revenue in excess of the amount required to meet expenditures, debts, obligations and liabilities that are incurred under the budget. B. A governing body may transfer monies between budget items if all of the following apply: 1. The monies are available. 2. The transfer is in the public interest and based on a demonstrated need. 3. The transfer does not result in a violation of the limitations prescribed in article IX, sections 19 and 20, Constitution of Arizona. 4. A majority of the members of the governing body votes affirmatively on the transfer at a public meeting. 42-17107. Truth in taxation notice and hearing; roll call vote on tax increase; definition A. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the governing body of the county, city or town the total net assessed values that are required to compute the levy limit prescribed by section 42-17051. If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the county, city or town in the preceding tax year in the county, city or town: 1. The governing body shall publish a notice that meets all of the following requirements: (a) Is published twice in a newspaper of general circulation in the county, city or town. The first publication shall be at least fourteen but not more than twenty days before the date of the hearing. The second publication shall be at least seven but not more than ten days before the date of the hearing. (b) Is published in a location other than the classified or legal advertising section of the newspaper in which it is published. (c) Is at least one-fourth page in size and is surrounded by a solid black border at least one-eighth inch in width. (d) Is in the following form, 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 42-17107, Arizona Revised Statutes, (name of county, city or town) is notifying its property taxpayers of (name of county, city or town)'s intention to raise its primary property taxes over last year's level. (name of county, city or town) is proposing an increase in primary property taxes of $__________ or _____%. For example, the proposed tax increase will cause (name of county, city or town)'s primary property taxes on a $100,000 home to be $(total proposed taxes including the tax increase). Without the proposed tax increase, the total taxes that would be owed on a $100,000 home would have been $_____. This proposed increase is exclusive of increased primary property taxes received from new construction. 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 tax increase that is scheduled to be held (date and time) at (location). (e) Is included in the estimates of revenues and expenses pursuant to section 42-17103 and in the budget finally adopted pursuant to section 42-17105. 2. In lieu of publishing the truth in taxation notice, the governing body may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this subsection to all registered voters in the county, city or town at least ten but not more than twenty days before the date of the hearing on the estimates pursuant to section 42-17104. 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 body shall issue a press release containing the truth in taxation notice. The press release must: (a) Include the name of the newspaper of general circulation in which the truth in taxation notice will be published and the dates on which the truth in taxation notice will be published. (b) Be posted on the official website of the county, city or town. 4. The governing body shall consider a motion to levy the increased property taxes by roll call vote. If the proposed levy, exclusive of increased property taxes received from new construction, constitutes an increase over the preceding tax year's levy by fifteen percent or more, the motion to levy the increased property taxes must be approved by a unanimous roll call vote of the governing body. 5. Within three days after the hearing, the governing body shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the governing body's vote under paragraph 4 of this subsection to the property tax oversight commission. 6. The governing body shall hold the truth in taxation hearing on or before the adoption of the county, city or town budget under section 42-17105. B. If the governing body fails to comply with the requirements of this section, the governing body shall not fix, levy or assess an amount of primary property taxes that exceeds the preceding year's amount, except for amounts attributable to new construction. C. For the purposes of this section, "amount attributable to new construction" means the net assessed valuation of property added to the tax roll since the previous year multiplied by a property tax rate computed by dividing the primary property tax levy of the county, city or town in the preceding year by the estimate of the total net assessed valuation of the county, city or town for the current year, excluding the net assessed valuation attributable to new construction. 42-17108. Encumbering municipal monies to pay obligations after close of fiscal year A. A city or town may encumber monies at the end of a fiscal year for any liabilities incurred during that fiscal year and still outstanding at the end of the fiscal year. B. Payments may be made from encumbered monies for a period of sixty days immediately after the end of the fiscal year. After the expiration of the sixty day period: 1. Any remaining encumbered balance lapses. 2. No further payments may be made from the budget of the preceding fiscal year. 42-17109. Alternative and additional method of leasing municipal facilities A. This section provides an alternative and additional method for leasing municipal facilities. This section does not apply to leases entered into before or after March 31, 1965, nor to leases executed and existing on March 31, 1965, if the leases would have been valid regardless of the enactment of this section. B. Nothing contained in this article shall be construed to limit the right of a city or town, as lessee, to enter into leases of real or personal property to be used for municipal auditorium and convention center purposes running for a term of not more than fifty years. A city or town may enter into such leases if title to the property leased is to vest in the lessee at the expiration of the term of the lease if the lessee has performed all of its obligations under the lease. No such lease need be included in the budget for the fiscal year in which it is executed, but provision shall be made in each annual budget thereafter during the term of the lease for the levy of taxes or the provision of other revenues fully sufficient to pay any rental falling due during that fiscal year. No such lease may be entered into without submitting the question to the qualified electors of the municipality and approval of the lease by a majority of those voting on the issue at an election to be ordered, conducted and canvassed in the manner provided in title 9, chapter 7, article 3. C. Monies for any rental payments due under any lease pursuant to subsection B shall be derived from revenues other than those collected to pay the general obligation bonds of the city or town and shall be used for municipal auditorium and convention center purposes. A tax shall not be imposed on real property to support the operation or maintenance of a municipal auditorium or convention center financed under this section. A tax shall not be imposed, or the proceeds of a tax shall not be used, for the payment of rentals under any lease entered into under this section. 42-17110. Budget of a newly incorporated city or town A. Notwithstanding any other provision of this article, a city or town that is incorporated after the third Monday in July or before June 30 in any fiscal year may adopt an interim budget by ordinance for the remainder of the fiscal year in which the city or town was incorporated. B. The city or town shall hold hearings on the proposed budget as prescribed by this article. C. The city or town may issue warrants pursuant to sections 9-247 through 9-250 to pay necessary expenses, which shall be redeemed when monies become available in the next fiscal year. D. The interim budget is not a base for computing allowable increases in the budget for the succeeding full fiscal year. The budget for the succeeding full fiscal year may be made as if no interim budget had been adopted. 42-17151. County, municipal, community college and school tax levy A. On or before the third Monday in August each year, the governing body of each county, city, town, community college district and school district shall: 1. Fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation. This amount, plus all other sources of revenue, as estimated, and restricted and unrestricted unencumbered balances from the preceding fiscal year, shall equal the total of amounts proposed to be spent in the budget for the current fiscal year. 2. Designate the amounts to be levied for each purpose appearing in the adopted budget. 3. Fix and determine a primary property tax rate and a secondary property tax rate, each rounded to four decimal places on each $100 of taxable property shown by the finally equalized valuations of property, minus exemptions, that appear on the tax rolls for the fiscal year, as determined by the assessor on or before February 10 of the tax year pursuant to section 42-17052, and that when extended on those valuations will produce, in the aggregate, the entire amount to be raised by direct taxation for that year. Amounts levied for debt service on bonds payable from the secondary tax are and shall be considered special revenues of the county, city, town or district, shall be kept in a special, segregated fund, are not and shall not be general property taxes and may not be used for any other purpose of the county, city, town or district. B. The governing body of a county, city, town or community college district shall not fix, levy or assess an amount of primary property taxes in excess of the amount permitted by section 42-17051, subsection A, paragraph 7 or section 42-17005 as determined by the property tax oversight commission. C. The governing board of a common school district, a high school district or a unified school district shall not fix, levy or assess a primary property tax rate higher than the current year's rate if the district meets both of the following criteria, as determined by the property tax oversight commission: 1. The total primary property taxes levied for all taxing jurisdictions on at least one-half of the residential property of the district exceed the limitation described in section 15-972, subsection E. 2. The school district primary property tax rate exceeds one hundred fifty percent of the applicable qualifying tax rate pursuant to section 41-1276. For the purposes of this paragraph, the school district primary property tax rate does not include the tax rates computed pursuant to section 15-992, subsections B and F. D. Not later than December 31, the property tax oversight commission shall notify those school districts that meet the criteria described in subsection C of this section and the county school superintendents and boards of supervisors of the counties in which the school districts are located. E. Within three days after the final levies are determined for a county, city, town or community college district, the chief county fiscal officer shall notify the property tax oversight commission of the amount of the primary property tax levied. F. Pursuant to section 15-465.01, subsection E, an accommodation school governing board shall not levy a primary or secondary property tax. The property tax oversight commission shall consider any amount of property tax levied by a county in support of an accommodation school to be part of the county's primary levy for the purposes of determining the county's compliance with subsection B of this section. 42-17152. Extending tax roll; limitation on residential property tax; effect of informalities A. As soon as the county board of supervisors finally determines the estimated amounts provided for in article 2 of this chapter, it shall assess taxes for the estimated amounts on the taxable property of the county, according and in proportion to the individual and particular valuation as specified in the assessment roll for the year, except that pursuant to article IX, section 18, Constitution of Arizona, primary property taxes may not be assessed in any tax year against real property, improvements and personal property classified as class three pursuant to section 42-12003 in excess of one per cent of the property's limited property value. B. The board of supervisors shall compute and list the property taxes and totals of taxes of each parcel, shall add the several taxes levied and shall compute the totals. The completed document constitutes the assessment and tax roll for the year. C. In addition to the requirements of subsection B of this section, if the board of supervisors authorizes tax statements to be delivered to the taxpayers of the county, the board shall list and compute the totals of the taxes by jurisdiction, for the current and the previous year. D. Any informality in complying with the requirements of this chapter does not render any tax collection proceeding illegal. E. For the purposes of this section, items of merchandise property that are exempt pursuant to article IX, sections 2 and 13, Constitution of Arizona, need not be listed on the tax rolls or tax statements. 42-17153. Lien for taxes; time lien attaches; priority A. Except as provided in subsection B of this section, a tax that is levied on real or personal property is a lien on the assessed property. B. A tax that is levied against personal property of a person who owns real property of a value of less than two hundred dollars in the county is a personal liability of the property owner, in addition to being a lien against the property. C. The lien: 1. Attaches on January 1 of the tax year. 2. Is not satisfied or removed until one of the following occurs: (a) The taxes, penalties, charges and interest are paid. (b) Title to the property has finally vested in a purchaser under a sale for taxes. (c) A certificate of removal and abatement has been issued pursuant to section 42-18353. 3. Is prior and superior to all other liens and encumbrances on the property, except: (a) Liens or encumbrances held by this state. (b) Liens for taxes accruing in any other years. D. For taxpayers valued by the department pursuant to section 42-14151, the lien shall attach to all property, real and personal, regardless of the taxing jurisdiction where such property is located. Such lien will attach to the entire system and may not be released by payment of a portion of the tax liability relating to a single portion or component of the system. E. If a political subdivision of this state acquires title to property after December 31, 1998, any lien for delinquent taxes on the property: 1. Is not abated, extinguished, discharged or merged in the title to the property unless approved by the county board of supervisors. 2. Is enforceable in the same manner as other delinquent tax liens. 42-17154. Attachment of lien to real and personal property, improvements and severed mineral rights A. Personal property is liable for taxes levied on real property, and real property is liable for taxes levied on personal property. A judgment against real property for nonpayment of taxes or assessed to the personal property of the same person shall not be prevented by a showing that the owner was possessed of personal property from which the taxes could have been made, but real property occupied as a homestead shall not be charged for taxes other than taxes due on the homestead. B. Taxes that are imposed on improvements to real estate and that are assessed to a person who is not the owner of the real estate are a lien on the land and improvements. C. If the owner of minerals or mineral rights in land does not also own the remaining interest in the land: 1. The taxes on the minerals or mineral rights are not a lien on the remaining interest in the land. 2. The taxes on the remaining interest in the land are not a lien on the separately owned minerals or mineral rights. 3. A tax sale resulting from failing to pay taxes on the minerals or mineral rights does not affect the ownership of the remaining interest in the land. 4. A tax sale resulting from failing to pay taxes on the remaining interest in the land does not affect the ownership of the minerals or mineral rights. 5. The failure to assess the minerals or mineral rights separately from the remaining interest in the land does not result in any lien for taxes imposed on the land being a lien on the minerals or mineral rights. 42-17155. County property tax information worksheet Within seven days after adopting the rates and levies pursuant to section 42-17151, the county board of supervisors shall compile and make available to the public the adopted property tax rates, levies and valuations for all taxing jurisdictions in the county on a worksheet prescribed by the department. The board shall post a complete copy of the worksheet in a prominent location on the county's official website. 42-17201. County levy limit override A. The board of supervisors of a county may conduct an election to authorize a property tax levy that is not within the limitations on primary property taxation otherwise prescribed by section 42-17051. B. In order to levy taxes exceeding the limitations prescribed on primary property tax, the board of supervisors shall adopt a resolution, by an affirmative vote of at least two-thirds of its membership, requesting the voters to approve a secondary property tax levy. C. The board of supervisors shall submit the question to the qualified electors of the county at an election held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d). D. In the resolution requesting the voters to approve the levy, the board shall state: 1. The number of years in which the authority to levy taxes in excess of the limitations otherwise prescribed is to be in effect. The board shall not request authority from the voters for a period of less than two years nor more than seven years. 2. The purpose for providing revenue to the county. 3. The maximum dollar amount of secondary property tax that may be collected in each year of the authority if voters approve the levy. 4. The estimated secondary property tax rate that will be levied in the first year if the voters approve the levy. E. If the levy is approved by the voters, the maximum amount of taxes that the board may levy for any year in which the authority is in effect is the amount stated in the resolution requesting voter approval of the levy. The board shall levy the tax in the same manner as county secondary property taxes as provided in section 42-17151. F. The board may use monies it collects pursuant to this section only for the purposes stated in the resolution requesting approval of the levy. If an unexpended balance of the monies collected pursuant to this section remains after satisfying the requirements of the resolution requesting the approval of the levy, the board shall use the balance to reduce the levy in the following year. If the balance exceeds the requirements for the following year or if the authority granted by the voters to collect the taxes pursuant to this section expires and is not renewed, the board shall use the balance to reduce the county primary property tax in the following year. G. The board shall deposit and separately account for the amounts collected pursuant to this section in a fund in the county treasury. H. The amounts collected pursuant to this section: 1. Shall not be included in the primary property tax levy limitation prescribed by section 42-17051 for any subsequent year, except as provided in this section. 2. Shall be collected from a levy of secondary property taxes. 3. Are not subject to limitations on taxes prescribed by article IX, section 18, Constitution of Arizona. 42-17202. Community college district levy limit override A. If the governing board of a community college district determines that the amounts permitted to be levied as primary property taxes in any year pursuant to section 42-17051 would provide insufficient revenue to the district, the board may conduct an election to authorize a property tax levy that is not within the limitations on primary property taxation. B. In order to levy taxes exceeding the limitations prescribed on primary property tax, the board shall adopt a resolution, by an affirmative vote of at least two-thirds of its membership, requesting the voters to approve a secondary property tax levy. C. The resolution shall state: 1. The maximum dollar amount of secondary property tax that may be collected in each year of the authority if the voters approve the levy. 2. The number of years for which the authority to levy in excess of the levy limitation is to be in effect, which shall be at least two years but not more than seven years. D. The election shall be held at a regularly scheduled election on the first Tuesday after the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d). E. The impact of the proposal shall appear on the ballot and in publicity pamphlets in the same manner as provided for local alternative expenditure limitations pursuant to section 41-563.03. F. If a majority of the qualified electors voting at the election approves, the governing board may levy the additional amount as authorized in the election. The additional amount approved by the voters: 1. Shall not be included in computing the primary property tax levy limitation for any subsequent year. 2. Shall be collected from a levy of secondary property taxes. 3. Is not subject to the limitations on taxes prescribed by article IX, section 18, Constitution of Arizona. 42-17203. County levy for community college; election A. A county that is not in an organized community college district may conduct an election to authorize a property tax levy for community college purposes that is not within the limitation on primary property taxes that is otherwise prescribed by section 42-17051. B. In order to levy taxes for community college purposes in excess of the limitations otherwise prescribed on primary property tax, the board of supervisors of a county that is not in an organized community college district shall adopt a resolution by an affirmative vote of at least two-thirds of its membership requesting the voters to approve a community college reimbursement levy and setting the time and place for the election. C. The board shall submit the questions to the qualified electors at an election held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection F. Except as otherwise provided in this section, the election shall be held according to the provisions applying to bond issuance elections in title 35, chapter 3, article 3. D. In the resolution requesting the voters to approve the levy and setting the time and place for the election, the board shall state: 1. The estimated maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection C, paragraph 1. 2. The estimated secondary property tax rate that will be levied if the voters approve the levy. 3. The estimated decrease of the primary property tax rate if the voters approve the levy for the payment of tuition under section 15-1469, subsection C, paragraph 1. 4. That the amount of community college reimbursement levy will vary from year to year to pay tuition under section 15-1469, subsection C, paragraph 1. 5. The maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. 6. The maximum growth rate that will be allowed for secondary property taxes collected in each subsequent year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section. E. The board may use monies it collects under this section to either: 1. Reimburse the costs of students pursuant to section 15-1469, subsection B, paragraphs 1 and 2 as approved by the voters. 2. Establish a campus in the county that is affiliated with a community college district. F. If the levy is approved by the voters for purposes of reimbursement pursuant to section 15-1469, the maximum amount of taxes that the board may levy for any year in which the authority is in effect is the amount of reimbursement pursuant to section 15-1469, subsection C, paragraph 1 and any portion of the reimbursement as specified in the resolution pursuant to subsection D, paragraphs 5 and 6 of this section as approved by the board of supervisors. G. The board of supervisors shall levy the tax in the same manner as county property taxes as provided in section 42-17151. If an unexpended balance of the monies collected pursuant to this section remains after satisfying the requirements of subsection E of this section, the board shall use the balance to reduce the community college levy under this section in the following year. If the balance exceeds the requirements for the following year, the board shall use the balance to reduce any other property tax authorized by law to be collected by the county. H. The amounts collected pursuant to this section: 1. Shall not be included in the levy limitation pursuant to section 42-17051 for any subsequent year. 2. Shall be collected from a levy of secondary property taxes. 3. Except as provided in this section, are exempt pursuant to article IX, section 19, subsection (5), Constitution of Arizona, from levy limitations. 42-17251. Extension of assessment roll to all taxing jurisdictions in the county; equalization A. Each county assessor shall compile the assessment roll, showing: 1. The total valuations of all property subject to taxation. 2. The valuation assessed to each taxpayer for each taxing jurisdiction in the county to show each assessment. 3. The total valuation of all of the property that is subject to taxation in the county and in each taxing jurisdiction in the county. B. The county roll constitutes the assessment roll for each taxing jurisdiction. C. The state and county boards of equalization shall equalize the assessments for each taxing jurisdiction to the same extent, in the same manner and at the same time that taxes for general county purposes are equalized. 42-17252. Municipal assessment and tax roll A. The board of supervisors shall compute and carry out separate entries for each city and town in the county. This constitutes the assessment and tax roll for the city or town. B. When the roll is completed and the extensions are revised and equalized, no other roll may be made for the purpose of collecting a general tax for any city or town. 42-17253. Computing municipal tax rate; levy A. Within five days after the assessment roll has been finally made, revised and equalized, the clerk of the board