House Bill 2193 addresses several provisions related to state revenue distribution and local government funding in Arizona. The bill proposes the repeal of section 41-194.01 of the Arizona Revised Statutes, which previously set forth specific regulations regarding local violations relative to state law. This repeal is intended to streamline the state's approach to handling local regulation and compliance with overarching state laws. In addition to the repeal, the bill amends sections 42-5029 and 43-206, focusing on the distribution mechanisms of state tax revenues shared with local jurisdictions.
The bill significantly impacts the revenue-sharing framework between the state and local governments by modifying how the urban revenue sharing fund is calculated and distributed. Under the proposed changes, beginning in fiscal year 2023-2024, the fund will consist of an amount equal to eighteen percent of the net proceeds from state income taxes, increasing from the previous fifteen percent. This adjustment seeks to enhance the flow of funds to incorporated cities and towns, allowing local governments to benefit more equitably from state tax collections.
One notable point of contention surrounding HB 2193 is its potential effect on local governance and financial autonomy. Supporters of the bill argue that the revised distribution percentages and repeal of certain restrictions allow municipalities more flexibility and resources for essential services and initiatives. Opponents, however, may view these amendments as part of a broader strategy to centralize authority at the state level, potentially undermining local control in favor of a more uniform system dictated by state law.
Overall, HB 2193 represents an effort to recalibrate the relationship between state and local governments regarding revenue-sharing practices. By amending existing statutes and adjusting distribution percentages, this legislation aims to respond to the evolving needs of municipalities while also striving to maintain compliance with state policies and regulations.