HB 2375
Initials VP Page 1 Ways & Means
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2375: urban revenue sharing; public safety
Sponsor: Representative Cobb, LD 5
Committee on Ways & Means
Overview
Requires, beginning July 1, 2023, cities and towns to only use their Urban Revenue Sharing
(URS) allocation for public safety services.
History
The Urban Revenue Sharing Fund was established in 1972 and provides that a percentage of
individual and corporate income tax revenues be shared with incorporated cities and towns.
Currently, 15% of these net income tax revenues from two years prior is distributed to the cities
and towns. Laws 2021, Ch. 412 changed the URS percentage to 18% beginning in FY 2024.
(A.R.S. § 43-206) The distribution is based on the most recent population estimates made
annually by the U.S. Census Bureau. (A.R.S. § 42-5033.01)
Provisions
1. Requires URS allocations to incorporated cities and towns to be used solely for public safety
services beginning July 1, 2023. (Sec. 1)
2. Requires the State Treasurer to withhold from a city or town an equal amount to any URS
allocations not used not used for public safety purposes in the following fiscal year. (Sec. 1)
3. Defines Public Safety Services. (Sec. 1)
4. Makes technical changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note