| 1 | 1 | | REFERENCE TITLE: data centers; qualification period; distribution State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2893 Introduced by Representatives Cavero: Biasiucci, Kupper, Rivero AN ACT Amending title 3, chapter 1, article 3, Arizona Revised Statutes, by adding section 3-129; amending sections 41-1519, 42-5010 and 42-5029, Arizona Revised Statutes; Amending Title 42, chapter 5, article 1, Arizona Revised Statutes, by adding section 42-5032.03; amending sections 42-5155 and 49-1331, Arizona Revised Statutes; relating to transaction privilege and use tax. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: data centers; qualification period; distribution |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 |
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| 11 | 11 | | HB 2893 |
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| 12 | 12 | | Introduced by Representatives Cavero: Biasiucci, Kupper, Rivero |
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| 14 | 14 | | REFERENCE TITLE: data centers; qualification period; distribution |
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| 24 | 24 | | State of Arizona |
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| 28 | 28 | | Fifty-seventh Legislature |
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| 30 | 30 | | First Regular Session |
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| 32 | 32 | | 2025 |
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| 40 | 40 | | HB 2893 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representatives Cavero: Biasiucci, Kupper, Rivero |
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| 64 | 64 | | AN ACT |
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| 68 | 68 | | Amending title 3, chapter 1, article 3, Arizona Revised Statutes, by adding section 3-129; amending sections 41-1519, 42-5010 and 42-5029, Arizona Revised Statutes; Amending Title 42, chapter 5, article 1, Arizona Revised Statutes, by adding section 42-5032.03; amending sections 42-5155 and 49-1331, Arizona Revised Statutes; relating to transaction privilege and use tax. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Title 3, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 3-129, to read: START_STATUTE3-129. On-farm irrigation efficiency program; fund; grants; requirements; annual report; definitions A. The on-farm irrigation efficiency program is established for the purposes of providing grants and collecting data for on-farm irrigation efficiency systems to reduce on-farm use of groundwater, surface water, mainstream Colorado River water or water delivered through the central Arizona project while minimizing or eliminating the use of flood irrigation or fallowing to reduce on-farm use. For applicants whose on-farm irrigation use of mainstream Colorado River water or water delivered through the central Arizona project was not delivered as a result of water shortages in Lake Mead, water savings may be used to farm fallowed irrigated acreage. For all other applicants, water savings may not be used to irrigate additional lands. B. The on-farm irrigation efficiency fund is established consisting of monies distributed pursuant to section 42-5032.03, legislative appropriations, grants from federal agencies and monies from any other lawful source. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. C. The university of Arizona cooperative extension shall administer the on-farm irrigation efficiency fund and may use not more than ten percent of the monies in the fund for the costs of administering the fund and the on-farm irrigation efficiency program. the university of Arizona cooperative extension may use up to $1,000,000 of the monies in the fund for irrigation efficiency demonstration, research and education. The university of Arizona cooperative extension may accept and deposit in the fund monies, grants, gifts, contributions and devises to assist in carrying out the purposes of this section. D. The university of Arizona cooperative extension may grant monies from the fund to qualified applicants for acquiring and installing an on-farm irrigation efficiency system that is approved by the university of Arizona cooperative extension to replace or modify flood irrigation systems if: 1. The grant does not exceed $1,000,000 for a single qualified applicant or related qualified applicants on the same farm unit. 2. The grant does not exceed $1,500 per acre of irrigable land that is served by the on-farm irrigation efficiency system. 3. The approved on-farm irrigation efficiency system has demonstrated at least a twenty percent savings in the amount of water used as compared to flood irrigation systems. The demonstration must be made through independently verified demonstration projects in this state or an accredited university analysis that examines irrigation and energy efficiency and any other benefits to the irrigable land and to crops grown on the irrigable land that take into account this state's climate and crop and farming practices. 4. The projected water savings from the approved on-farm irrigation efficiency system, the crop type and estimated water usage based on water frequency and durations is likely to result in a water savings of twenty precent or more, as compared to normal flood irrigation practices. 5. at the time of application, The qualified applicant provides a record of active farming for three of the previous five years for the proposed acreage. 6. at the time of application, The type of crop to be irrigated with the installed on-farm irrigation efficiency system has been grown in the agricultural region during the previous five years to allow for an appropriate comparison of water savings. E. In determining whether to grant on-farm irrigation efficiency fund monies to a qualified applicant, the university of Arizona cooperative extension may give preference to an on-farm irrigation EFFICIENCY system that the university of Arizona cooperative extension determines will: 1. Most cost-effectively reduce on-farm water usage. 2. Minimize energy usage to the benefit of this state. 3. Maximize any other benefits to the irrigable land or crops grown on the irrigable land. 4. Provide opportunities for data collection for use by diverse high agricultural water use regions in this state. F. The application for a grant of monies shall be on a form prescribed by the university of Arizona cooperative extension and shall include all of the following: 1. The name of the landowner to which the title to the real property is vested. 2. The name of the irrigation district that is delivering water to the land, if applicable. 3. The legal description of the irrigated fields that are intended to benefit from the grant. 4. A description of the water right or entitlement that currently supports the irrigated fields. 5. Water use and cropping history for the five calendar years immediately preceding the application. 6. A description of the current irrigation delivery system and the proposed on-farm irrigation efficiency system technology. 7. Any other information that the university of Arizona cooperative extension may require. G. Recipients of monies under this program may not receive a state tax credit for that portion of an on-farm irrigation efficiency system that is purchased with grant monies under the on-farm irrigation efficiency program. H. As a condition of the grant, the university of Arizona cooperative extension shall require the qualified applicant that is approved to use grant monies to certify the installation of the new on-farm irrigation efficiency system, agree to use the new on-farm irrigation efficiency system for three years and report on the individual fields that receive the benefit of the monies in order to demonstrate water delivery reductions on the affected individual fields. I. Before December 31 of each year, the university of Arizona cooperative extension shall submit to the president of the senate and the speaker of the house of representatives a written report describing the activities of the university of Arizona cooperative extension for the preceding fiscal year related to expenditures from the on-farm irrigation efficiency fund for on-farm irrigation efficiency systems and shall provide a copy of the report to the secretary of state. The report shall include an accounting of expenditures from the fund and how the monies were used to implement on-farm irrigation efficiency systems. The report shall identify at least the following: 1. The specific fields and locations where on-farm irrigation efficiency systems were implemented. 2. The legal character of the water used on those specific fields. 3. The soil type and the types of crops produced. 4. The quantity of water conserved by implementing the on-farm irrigation efficiency system. 5. Any other relevant data to better inform future decisions on strategically deploying on-farm irrigation efficiency systems or programs to more efficiently use agricultural water in this state. J. For the purposes of this section: 1. "Farm unit" means one or more farms that are irrigated with groundwater, surface water, mainstream Colorado River water or water delivered through the central Arizona project and that are contiguous or in proximity to each other and with similar soil conditions. 2. "On-farm irrigation efficiency system" means a water delivery system consisting of all component parts and equipment necessary to deliver water to an irrigable field through a method other than flood irrigation. 3. "Qualified applicant" means an agricultural landowner or lessee of agricultural land with the landowner's consent required by state law to hold a grower permit issued by the department pursuant to section 3-363 that has actively farmed the land in three of the five calendar years immediately preceding the date of the application by using some quantity of groundwater, surface water, Colorado River water or water delivered through the central Arizona project.END_STATUTE Sec. 2. Section 41-1519, Arizona Revised Statutes, is amended to read: START_STATUTE41-1519. Computer data center tax relief; definitions A. From and after August 31, 2013, tax relief is allowed for the owner or operator of a computer data center certified pursuant to this section. The same tax relief is allowed for qualified colocation tenants of the computer data center. All tax relief applies during the qualification period. B. To qualify for the tax relief, the owner or operator shall submit to the authority an application on a form prescribed by the authority that includes all of the following: 1. The owner's or operator's name, address and telephone number. 2. The address of the site where the facility is or will be located, including, if applicable, information sufficient to identify the specific portion or portions of the facility composing the computer data center. 3. If the computer data center is to qualify under subsection E, paragraph 1 of this section, both of the following: (a) The anticipated investment associated with the computer data center for which the tax relief is being sought and whether the computer data center is anticipated to qualify as a sustainable redevelopment project. (b) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy one of the certification requirements prescribed in subsection E, paragraph 1 of this section and that the computer data center will not violate subsection M of this section. 4. If the computer data center is to qualify under subsection E, paragraph 2 of this section, an affirmation, signed by an authorized executive representing the owner or operator, that the computer data center has satisfied the certification requirements prescribed in subsection E, paragraph 2 of this section, whether the computer data center qualifies as a sustainable redevelopment project and that the computer data center will not violate subsection M of this section. C. Within sixty days after receiving a complete and correct application, the authority shall review the application and either issue a written certification that the computer data center qualifies for the tax relief or provide written reasons for its denial. Failure to approve or deny the application within sixty days after the date the owner or operator submits the application to the authority constitutes approval of the computer data center, and the authority shall issue written certification to the owner or operator within fourteen days. The effective date of the certification is either the date on which the application was submitted to the authority or a prospective date stated in the application that does not exceed five years after the date on which the application was submitted. The authority shall send a copy of the certification, including its effective date, to the department of revenue. The authority shall not certify any new computer data center that submits an application to the authority after December 31, 2033. D. An owner or operator may separate a facility into one or more computer data centers, which may each receive a separate certification if each computer data center individually meets the requirements prescribed in subsection E of this section. A portion of a facility or an article of computer data center equipment shall not be deemed to be a part of more than one computer data center. The owner or operator may aggregate one or more of the parcels, buildings, condominiums or modular data centers in a facility into a single computer data center if, in the aggregate, the parcels, buildings, condominiums and modular data centers meet the requirements of subsection E of this section. E. A computer data center must meet one of the following requirements after taking into account the combined investments made by the owner, operator or qualified colocation tenants of a computer data center: 1. On or before the fifth anniversary of certification, the computer data center creates a minimum investment of at least: (a) $25,000,000 of new investment, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement, if the computer data center is located in a county with a population of eight hundred thousand or less persons. (b) $50,000,000 of new investment, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement, if the computer data center is located in a county with a population of more than eight hundred thousand persons. 2. During the seventy-two months immediately before September 1, 2013, the computer data center created an investment of at least $250,000,000, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement. F. On or before the fifth anniversary of the certification of a new computer data center, the owner or operator shall notify the authority in writing that the computer data center for which the certification is requested has or has not satisfied the requirements prescribed in subsection E, paragraph 1 of this section. Until a new computer data center satisfies the requirements prescribed in subsection E, paragraph 1 of this section, the owner or operator shall keep detailed records of all investment created by the new computer data center, including costs of land, buildings, improvements, modular data centers and computer data center equipment, and all tax relief directly received by the owner or operator. This subsection does not apply to an existing computer data center. G. If the authority determines that: 1. A new computer data center that is certified under subsection E, paragraph 1 of this section has not complied with the requirements and time periods prescribed by subsection E, paragraph 1 of this section, the authority shall revoke the computer data center's certification. If the certification is revoked, the qualification period of any owner, operator or qualified colocation tenant of the computer data center automatically terminates, and the department of revenue may recapture all or part of the tax relief provided directly to the owners and operators. A qualified colocation tenant is not subject to recapture of any part of tax relief received pursuant to this section, except that a contributing qualified colocation tenant may be subject to recapture if it is located in a computer data center that is certified from and after August 31, 2016. An owner or operator may appeal any revocation under this paragraph pursuant to chapter 6, article 10 of this title. 2. There has been a violation of subsection M of this section with respect to a computer data center: (a) The authority shall revoke the computer data center's certification and, if revoked, the qualification period of any owner, operator or qualified colocation tenant of the computer data center automatically terminates. (b) The department of revenue may not recapture any tax relief provided directly to the owner, operator or qualified colocation tenant before the date of revocation. (c) An owner or operator may appeal any revocation under this paragraph pursuant to chapter 6, article 10 of this title. H. The authority and the department of revenue shall adopt rules and prescribe forms and procedures as necessary for the purposes of this section. The authority and the department shall collaborate in adopting rules as necessary to avoid duplication and inconsistencies while accomplishing the purposes of this section. The authority has exclusive authority over issues related to certification, including determinations as to whether a computer data center has satisfied the requirements of subsection E of this section, constitutes a qualified sustainable redevelopment project or has committed a violation of this section. The department of revenue has exclusive authority over the administration of tax relief. I. Proprietary business information contained in the application described in subsection B of this section, the written notice described in subsection F of this section and the list described in subsection J of this section are confidential and shall not be disclosed to the public except that the information shall be transmitted to the department of revenue. The authority or the department may disclose the name of a computer data center that has been certified pursuant to this section. J. The owner or operator shall provide the authority and the department of revenue with a list of qualified colocation tenants, including the commencement and expiration dates of each qualified colocation tenant's agreement to use or occupy all or part of the computer data center, and shall notify the authority and the department of any changes within thirty days. The failure of an owner or operator to provide the list or notify the authority and department of revenue of changes within the required time is not grounds for termination of the computer data center's certification, but may preclude unlisted colocation tenants from receiving tax relief until the list is provided or updated. K. Except as provided in subsection G of this section, if a computer data center has been certified, the certification remains in effect, even in the event of a future transfer, sale or disposition, directly or indirectly, of the computer data center. L. For the purposes of qualifying and continuing as a sustainable redevelopment project: 1. After receiving certification, an owner may substantially demolish all or part of an existing building to the extent reasonably necessary to accommodate future computer data center use, and the demolition is not cause for loss of certification as a sustainable redevelopment project. An existing building that has been substantially demolished before certification is not eligible to qualify as a sustainable redevelopment project. 2. An owner or operator may expand the boundaries of a certified computer data center by increasing the size of an existing building within a sustainable redevelopment project or by building additional improvements in an unlimited manner to the extent the expansion is constructed on the same parcel of land on which the original sustainable redevelopment project is located or on a contiguous parcel, regardless of whether the contiguous parcel was within the original description of the boundaries of the certified computer data center. Expansion activities do not prevent a facility from maintaining its classification as a sustainable redevelopment project. 3. All construction activities and investments related to demolition and expansion activities described in this subsection are considered to be a part of the sustainable redevelopment project. M. This section does not allow a computer data center to do either of the following: 1. Generate electricity for resale purposes. 2. Generate, provide or sell electricity outside of the computer data center. N. The owner or operator may be a single individual or entity or multiple affiliated entities. O. For the purposes of this section: 1. "Computer data center" means all or part of a facility that may be composed of multiple businesses or owners, that is or will be predominantly used to house working servers and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. 2. "Computer data center equipment" means equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements and upgrades to this equipment, regardless of whether affixed to or incorporated into real property, and whether owned, leased or used by the owner or operator pursuant to a contract for the right to use the equipment, including: (a) All equipment necessary for the transformation, generation, distribution or management of electricity that is required to operate computer server equipment, including generators, uninterruptible energy, supplies, conduit, gaseous fuel piping, cabling, duct banks, switches, switchboards, batteries and testing equipment. (b) All equipment necessary to cool and maintain a controlled environment for the operation of the computer server and other components of the computer data center, including mechanical equipment, refrigerant piping, gaseous fuel piping, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters. (c) All water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water. (d) All enabling software, computer server equipment, chassis, networking equipment, switches, racks, cabling, trays and conduit. (e) All monitoring equipment and security systems. (f) Modular data centers and preassembled components of any item described in this paragraph, including components used in the manufacturing of modular data centers. (g) Other tangible personal property that is essential to the operations of a computer data center. 3. "Contributing qualified colocation tenant" means a qualified colocation tenant that is an operator or that had its anticipated investment included in an application for certification for the purposes of satisfying subsection E, paragraph 1 of this section. 4. "Existing building" means any existing vertical building improvement located at a facility used for commercial purposes at the time of its acquisition by an owner, but not including single family residential structures, barns or other agricultural structures. 5. "Existing computer data center" means a computer data center that is certified under subsection E, paragraph 2 of this section. 6. "Facility" means one or more parcels of land in this state and any structures and personal property contained on the land. 7. "Investment" means all monies spent to acquire a facility regardless of prior use and all monies spent to construct or expand a computer data center, including costs of land, buildings, improvements, modular data centers and computer data center equipment. For new data centers, investment includes all costs incurred on or after a date that is thirty days before the date the application is submitted to the authority. 8. "Modular data center" means a portable system of information technology, climate control, energy supply and energy distribution machinery, equipment and related tangible personal property contained in an intermodal freight container or similar structure. 9. "New computer data center" means a computer data center that is certified under subsection E, paragraph 1 of this section. 10. "Operator" means any individual or entity that operates a computer data center as an operator or lessor or pursuant to a contract with an owner or lessor. Operator includes a licensed property management company, a property lessor or any other individual or entity responsible for the control, oversight or maintenance of a facility. 11. "Qualification period" means: (a) With respect to the owner or operator of a computer data center, a period of time beginning on the effective date of the computer data center's certification and expiring at the end of the tenth fifth full calendar year following the calendar year containing the effective date, except, if a computer data center is a sustainable redevelopment project, qualification period means a period of time beginning on the effective date of the computer data center's certification and expiring at the end of the twentieth tenth full calendar year following the calendar year containing the effective date. (b) With respect to the qualified colocation tenant of the owner or operator of a computer data center certified under this section, a period of time beginning on the date that the qualified colocation tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the tenth fifth full calendar year following the calendar year in which the qualified colocation tenant entered into the agreement, except, if a computer data center is a sustainable redevelopment project, qualification period means a period of time beginning on the date that the qualified colocation tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the twentieth tenth full calendar year following the calendar year in which the tenant entered into the agreement. The qualification period for a qualified colocation tenant may not extend beyond the qualification period for the owner or operator of the computer data center. 12. "Qualified colocation tenant" means an entity that contracts with the owner, the operator or another qualified colocation tenant of a computer data center that is certified pursuant to this section to use or occupy all or part of the computer data center for at least five hundred kilowatts per month for a period of two or more years. 13. "Sustainable redevelopment project" means a computer data center that satisfies the requirements in subsection E of this section and is either: (a) A newly constructed data center, with at least a $200,000,000 investment, that attains certification under the energy star or green globes standard, the leadership in energy and environmental design green building rating standard developed by the United States green building council or an equivalent green building standard and was not previously certified under these standards. (b) A data center that occupies an existing facility that either: (i) Was at least fifty percent vacant for six of the twelve consecutive months before the acquisition by purchase or lease of or with respect to the facility. (ii) Attains certification under the energy star or green globes standard, the leadership in energy and environmental design green building rating standard developed by the United States green building council or an equivalent green building standard and was not previously certified under these standards. 14. "Tax relief" means the deductions of the gross proceeds of sale or gross income from the sale, use, installation, assembly, repair or maintenance of computer data center equipment as prescribed by sections 42-5061, 42-5075, 42-5159 and 42-6004 for use at a computer data center. END_STATUTE Sec. 3. Section 42-5010, Arizona Revised Statutes, is amended to read: START_STATUTE42-5010. Rates; distribution base A. The tax imposed by this article is levied and shall be collected at the following rates: 1. Five percent of the tax base as computed for the business of every person engaging or continuing in this state in the following business classifications described in article 2 of this chapter: (a) Transporting classification. (b) Utilities classification. (c) Telecommunications classification. (d) Pipeline classification. (e) Private car line classification. (f) Publication classification. (g) Job printing classification. (h) Prime contracting classification. (i) Amusement classification. (j) Restaurant classification. (k) Personal property rental classification. (l) Retail classification and amounts equal to retail transaction privilege tax due pursuant to section 42-5008.01. 2. Five and one-half percent of the tax base as computed for the business of every person engaging or continuing in this state in: (a) The transient lodging classification described in section 42-5070. (b) The online lodging marketplace classification described in section 42-5076 who has entered into an agreement with the department to register for, or has otherwise obtained from the department, a license to collect tax pursuant to section 42-5005, subsection L. 3. Three and one-eighth percent of the tax base as computed for the business of every person engaging or continuing in this state in the mining classification described in section 42-5072. 4. Zero percent of the tax base as computed for the business of every person engaging or continuing in this state in the commercial lease classification described in section 42-5069. B. Except as provided by subsection J of this section, twenty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (a) through (h) of this section is designated as distribution base for the purposes of section 42-5029. C. Forty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (i) through (l) of this section is designated as distribution base for the purposes of section 42-5029. D. Thirty-two percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 3 of this section is designated as distribution base for the purposes of section 42-5029. E. Fifty-three and one-third percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 4 of this section is designated as distribution base for the purposes of section 42-5029. F. Fifty percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 2 of this section is designated as distribution base for the purposes of section 42-5029. G. In addition to the rates prescribed by subsection A of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment is imposed and shall be collected through June 30, 2021. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection A of this section. The department shall separately account for the revenues collected with respect to the rates imposed pursuant to this subsection and the state treasurer shall distribute all of those revenues in the manner prescribed by section 42-5029, subsection E. The rates imposed pursuant to this subsection shall not be considered local revenues for purposes of article IX, section 21, Constitution of Arizona. The additional tax rate increment is levied at the rate of six-tenths of one per cent of the tax base of every person engaging or continuing in this state in a business classification listed in subsection A, paragraph 1 of this section. H. Any increase in the rate of tax that is imposed by this chapter and that is enacted by the legislature or by a vote of the people does not apply with respect to contracts entered into by prime contractors or pursuant to written bids made by prime contractors on or before the effective date of the legislation or the date of the election enacting the increase. To qualify for the exemption under this subsection, the prime contractor must maintain sufficient documentation, in a manner and form prescribed by the department, to verify the date of the contract or written bid. I. For taxpayers that are taxable under this chapter other than prime contractors taxable pursuant to section 42-5075: 1. Any increase in the rate of tax that is levied by this article or article 2 of this chapter enacted by the legislature or by a vote of the people does not apply for a period of one hundred twenty days from after the date of the tax rate increase to the gross proceeds of sales or gross income from the business of the taxpayer with respect to written contracts entered into before the effective date of the tax rate increase unless the taxpayer has entered into a contract that contains a provision that entitles the taxpayer to recover from the purchaser the amount of the additional tax levied. 2. The provisions of this subsection apply without regard to the accounting method used by the taxpayer to report the taxes imposed under article 2 of this chapter. 3. The provisions of this subsection shall not be considered in determining the rate of tax imposed under chapter 6, article 3 of this title. J. Zero percent of the tax revenues that are collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classification listed in subsection A, paragraph 1, subdivision (h) of this section, and that are subject to any distribution required by section 42-5032.02, is designated as distribution base for the purposes of section 42-5029 until the total amount subject to distribution pursuant to section 42-5032.02 has reached the maximum amount prescribed by section 42-5032.02, subsection C. Thereafter, twenty percent of the remaining tax revenues is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section. K. For the ten-year period after the qualification period for tax relief under section 41-1519 expires, zero percent of the tax revenues that are collected at the rate prescribed by subsection A of this section from persons that engage in business under the business classifications listed in subsection A, paragraph 1, subdivisions (h) and (l) of this section from transactions with a computer data center, qualified colocation tenant or sustainable redevelopment project that received tax relief under section 41-1519 and are subject to distribution pursuant to section 42-5032.03 is designated as distribution base of the purposes of section 42-5029. Thereafter, twenty percent of the remaining tax revenues is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section for the business classification listed in subsection A, paragraph 1, subdivision (h) of this section and forty percent for the business classification listed in subsection A, paragraph 1, subdivision (l) of this section. For the purposes of this subsection, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE Sec. 4. Section 42-5029, Arizona Revised Statutes, is amended to read: START_STATUTE42-5029. Remission and distribution of monies; withholding; definition A. The department shall deposit, pursuant to sections 35-146 and 35-147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42-1116, separately accounting for: 1. Payments of estimated tax under section 42-5014, subsection D. 2. Revenues collected pursuant to section 42-5070. 3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state. 4. Revenues collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D. 5. Revenues collected pursuant to section 42-5010.01 and section 42-5155, subsection E. 6. Revenues collected pursuant to section 42-5061 from a remote seller. 7. Revenues collected pursuant to section 42-5010, subsection K and section 42-5155, subsection H. B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account. The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-5010, 42-5164 and 42-5205. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter. C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-5164 and 42-5205, after deducting warrants drawn against the account pursuant to sections 42-1118 and 42-1254. D. Of the monies designated as distribution base, the department shall: 1. Pay twenty-five percent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose, except a municipality shall use monies paid from revenues separately accounted for pursuant to subsection A, paragraph 6 of this section and paid pursuant to this paragraph for public safety before any other municipal purpose. 2. Pay 38.08 percent to the counties in this state by averaging the following proportions: (a) The proportion that the population of each county bears to the total state population. (b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout the this state for the calendar month. 3. Pay an additional 2.43 percent to the counties in this state as follows: (a) Average the following proportions: (i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item. (ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout this state for the calendar month. (b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection. 4. After any distributions required by sections 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01 and 42-5032.02, and after making any transfer to the water quality assurance revolving fund as required by section 49-282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund. From this amount the legislature shall annually appropriate to: (a) The department of revenue, sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter. (b) The department of economic security, monies to be used for the purposes stated in title 46, chapter 1. (c) The firearms safety and ranges fund established by section 17-273, $50,000 derived from the taxes collected from the retail classification pursuant to section 42-5061 for the current fiscal year. E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows: 1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one-twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15-2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations. 2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities for the purpose of investment in technology and research-based initiatives. 3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs. 4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42-5031.01, subsection D. 5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases enacted in 2000: (a) In fiscal year 2001-2002, $15,305,900. (b) In fiscal year 2002-2003, $31,530,100. (c) In fiscal year 2003-2004, $48,727,700. (d) In fiscal year 2004-2005, $66,957,200. (e) In fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500. 6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15-154.01. 7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15-241 and title 15, chapter 9, article 8. 8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241. 9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43-1072.01. 10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated as follows in the manner prescribed by section 15-977: (a) Forty per cent shall be allocated for teacher compensation based on performance. (b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses. (c) Forty per cent shall be allocated for maintenance and operation purposes. F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42-5030.01. G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by 1/36 of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten percent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered. H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41-2257 or 41-2258 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section. I. Except as provided by sections 42-5033 and 42-5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section. J. Except as otherwise provided by this subsection, on notice from the department of revenue pursuant to section 42-6010, subsection B, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city or town the amount of the penalty for business location municipal tax incentives provided by the city or town to a business entity that locates a retail business facility in the city or town. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount of the penalty has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. The state treasurer shall not withhold any amount that the city or town certifies to the department of revenue and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the city or town that were issued or incurred before the location incentives provided by the city or town. K. On notice from the auditor general pursuant to section 9-626, subsection D, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city the amount computed pursuant to section 9-626, subsection D. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount specified in the notice has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. L. Except as otherwise provided by this subsection, on notice from the attorney general pursuant to section 41-194.01, subsection B, paragraph 1 that an ordinance, regulation, order or other official action adopted or taken by the governing body of a county, city or town violates state law or the Constitution of Arizona, the state treasurer shall withhold the distribution of monies pursuant to this section to the affected county, city or town and shall continue to withhold monies pursuant to this subsection until the attorney general certifies to the state treasurer that the violation has been resolved. The state treasurer shall redistribute the monies withheld pursuant to this subsection among all other counties, cities and towns in proportion to their population as provided by subsection D of this section. The state treasurer shall not withhold any amount that the county, city or town certifies to the attorney general and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the county, city or town that were issued or incurred before committing the violation. M. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409. END_STATUTE Sec. 5. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5032.03, to read: START_STATUTE42-5032.03. Distribution of revenues for water infrastructure; definitions A. Each month the state treasurer shall deposit, pursuant to sections 35-146 and 35-147, the monies collected from persons engaging in business under the business classifications listed in section 42-5010, subsection A, paragraph 1, subdivisions (h) and (l) from transactions with a computer data center, qualified colocation tenant or sustainable redevelopment project whose qualification period for tax relief under section 41-1519 expired for the ten-year period after the qualification period under section 41-1519 expired as follows: 1. Fifty percent of the monies collected in the water conservation grant fund established by section 49-1331. 2. Fifty percent of the monies collected in the on-farm irrigation efficiency fund established by section 3-129. B. For the purposes of this section, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE Sec. 6. Section 42-5155, Arizona Revised Statutes, is amended to read: START_STATUTE42-5155. Levy of tax; tax rate; purchaser's liability A. There is levied and imposed an excise tax on the storage, use or consumption in this state of tangible personal property purchased from a retailer or utility business, as a percentage of the sales price. A manufactured building purchased outside this state and set up in this state is subject to tax under this section and in this case the rate is a percentage of sixty-five percent of the sales price. B. The tax imposed by this section applies to any purchaser that purchased tangible personal property for resale but subsequently uses or consumes the property. C. The tax rate shall equal the rate of tax prescribed by section 42-5010, subsection A as applied to retailers and utility businesses according to the respective classification under articles 1 and 2 of this chapter for the same type of transaction or business activity. D. In addition to the rate prescribed by subsection C of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment of six-tenths of one per cent is imposed and shall be collected through June 30, 2021. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection C of this section. The department shall separately account for the revenues collected with respect to the rate imposed pursuant to this subsection, and the state treasurer shall pay all of those revenues in the manner prescribed by section 42-5029, subsection E. E. From and after June 30, 2021 through June 30, 2041, in addition to the rate prescribed by subsection C of this section, an additional rate increment of six-tenths of one percent is imposed and shall be collected. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection C of this section. The department shall separately account for the revenues collected with respect to the rate imposed pursuant to this subsection, and the state treasurer shall pay all of those revenues in the manner prescribed by section 42-5029.02, subsection A. F. Every person storing, using or consuming in this state tangible personal property purchased from a retailer or utility business is liable for the tax. The person's liability is not extinguished until the tax has been paid to this state. G. A receipt from a retailer or utility business that maintains a place of business in this state or from a retailer or utility business that is authorized by the department to collect the tax, under such rules as it may prescribe, and that is for the purposes of this article regarded as a retailer or utility business maintaining a place of business in this state, given to the purchaser as provided in section 42-5161 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. H. For the ten-year period after the qualification period for tax relief under section 41-1519 expires, the revenues collected pursuant to this section from a computer data center, qualified colocation tenant or sustainable redevelopment project that received tax relief under section 41-1519 shall be deposited pursuant to section 42-5032.03. For the purposes of this subsection, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE Sec. 7. Section 49-1331, Arizona Revised Statutes, is amended to read: START_STATUTE49-1331. Water conservation grant fund; exemption; administration; report A. The water conservation grant fund is established to be maintained in perpetuity consisting of all the following: 1. Legislative appropriations. 2. Monies received for water conservation purposes from the United States government. 3. Interest and other income received from investing monies in the fund. 4. Gifts, grants and donations received for water conservation purposes from any public or private source. 5. Monies deposited pursuant to section 42-5032.03. 5. 6. Any other monies received by the authority in connection with the purpose of the fund. B. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. All monies deposited in the fund shall be held in trust. The monies in the fund may not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the state general fund unless approved by a three-fourths vote of the members of each house of the legislature. This subsection does not apply to any taxes or other levies that are imposed pursuant to title 42 or 43. D. The authority shall administer the fund and establish as many other accounts and subaccounts as required to administer the fund. E. Monies and other assets in the fund shall be used solely for the purposes authorized by this article. F. The annual report required by section 49-1204 shall include: 1. The expenditures made from the fund in the previous fiscal year. 2. Whether programs or projects funded by the fund in the previous fiscal year did in fact: (a) Result in long-term, sustainable reductions in water use. (b) Improve water use efficiency. (c) Improve water reliability. 3. The environmental impacts of programs or projects funded by the fund in the previous fiscal year. END_STATUTE Sec. 8. Applicability This act applies to qualification periods as defined in section 41-1519, Arizona Revised Statutes, that begin from and after the effective date of this act. |
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| 79 | 79 | | |
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| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: |
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| 81 | 81 | | |
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| 82 | 82 | | Section 1. Title 3, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 3-129, to read: |
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| 83 | 83 | | |
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| 84 | 84 | | START_STATUTE3-129. On-farm irrigation efficiency program; fund; grants; requirements; annual report; definitions |
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| 85 | 85 | | |
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| 86 | 86 | | A. The on-farm irrigation efficiency program is established for the purposes of providing grants and collecting data for on-farm irrigation efficiency systems to reduce on-farm use of groundwater, surface water, mainstream Colorado River water or water delivered through the central Arizona project while minimizing or eliminating the use of flood irrigation or fallowing to reduce on-farm use. For applicants whose on-farm irrigation use of mainstream Colorado River water or water delivered through the central Arizona project was not delivered as a result of water shortages in Lake Mead, water savings may be used to farm fallowed irrigated acreage. For all other applicants, water savings may not be used to irrigate additional lands. |
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| 87 | 87 | | |
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| 88 | 88 | | B. The on-farm irrigation efficiency fund is established consisting of monies distributed pursuant to section 42-5032.03, legislative appropriations, grants from federal agencies and monies from any other lawful source. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. |
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| 89 | 89 | | |
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| 90 | 90 | | C. The university of Arizona cooperative extension shall administer the on-farm irrigation efficiency fund and may use not more than ten percent of the monies in the fund for the costs of administering the fund and the on-farm irrigation efficiency program. the university of Arizona cooperative extension may use up to $1,000,000 of the monies in the fund for irrigation efficiency demonstration, research and education. The university of Arizona cooperative extension may accept and deposit in the fund monies, grants, gifts, contributions and devises to assist in carrying out the purposes of this section. |
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| 91 | 91 | | |
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| 92 | 92 | | D. The university of Arizona cooperative extension may grant monies from the fund to qualified applicants for acquiring and installing an on-farm irrigation efficiency system that is approved by the university of Arizona cooperative extension to replace or modify flood irrigation systems if: |
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| 93 | 93 | | |
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| 94 | 94 | | 1. The grant does not exceed $1,000,000 for a single qualified applicant or related qualified applicants on the same farm unit. |
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| 95 | 95 | | |
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| 96 | 96 | | 2. The grant does not exceed $1,500 per acre of irrigable land that is served by the on-farm irrigation efficiency system. |
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| 97 | 97 | | |
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| 98 | 98 | | 3. The approved on-farm irrigation efficiency system has demonstrated at least a twenty percent savings in the amount of water used as compared to flood irrigation systems. The demonstration must be made through independently verified demonstration projects in this state or an accredited university analysis that examines irrigation and energy efficiency and any other benefits to the irrigable land and to crops grown on the irrigable land that take into account this state's climate and crop and farming practices. |
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| 99 | 99 | | |
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| 100 | 100 | | 4. The projected water savings from the approved on-farm irrigation efficiency system, the crop type and estimated water usage based on water frequency and durations is likely to result in a water savings of twenty precent or more, as compared to normal flood irrigation practices. |
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| 101 | 101 | | |
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| 102 | 102 | | 5. at the time of application, The qualified applicant provides a record of active farming for three of the previous five years for the proposed acreage. |
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| 103 | 103 | | |
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| 104 | 104 | | 6. at the time of application, The type of crop to be irrigated with the installed on-farm irrigation efficiency system has been grown in the agricultural region during the previous five years to allow for an appropriate comparison of water savings. |
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| 105 | 105 | | |
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| 106 | 106 | | E. In determining whether to grant on-farm irrigation efficiency fund monies to a qualified applicant, the university of Arizona cooperative extension may give preference to an on-farm irrigation EFFICIENCY system that the university of Arizona cooperative extension determines will: |
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| 107 | 107 | | |
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| 108 | 108 | | 1. Most cost-effectively reduce on-farm water usage. |
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| 109 | 109 | | |
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| 110 | 110 | | 2. Minimize energy usage to the benefit of this state. |
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| 111 | 111 | | |
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| 112 | 112 | | 3. Maximize any other benefits to the irrigable land or crops grown on the irrigable land. |
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| 113 | 113 | | |
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| 114 | 114 | | 4. Provide opportunities for data collection for use by diverse high agricultural water use regions in this state. |
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| 115 | 115 | | |
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| 116 | 116 | | F. The application for a grant of monies shall be on a form prescribed by the university of Arizona cooperative extension and shall include all of the following: |
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| 117 | 117 | | |
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| 118 | 118 | | 1. The name of the landowner to which the title to the real property is vested. |
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| 119 | 119 | | |
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| 120 | 120 | | 2. The name of the irrigation district that is delivering water to the land, if applicable. |
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| 121 | 121 | | |
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| 122 | 122 | | 3. The legal description of the irrigated fields that are intended to benefit from the grant. |
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| 123 | 123 | | |
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| 124 | 124 | | 4. A description of the water right or entitlement that currently supports the irrigated fields. |
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| 125 | 125 | | |
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| 126 | 126 | | 5. Water use and cropping history for the five calendar years immediately preceding the application. |
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| 127 | 127 | | |
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| 128 | 128 | | 6. A description of the current irrigation delivery system and the proposed on-farm irrigation efficiency system technology. |
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| 129 | 129 | | |
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| 130 | 130 | | 7. Any other information that the university of Arizona cooperative extension may require. |
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| 131 | 131 | | |
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| 132 | 132 | | G. Recipients of monies under this program may not receive a state tax credit for that portion of an on-farm irrigation efficiency system that is purchased with grant monies under the on-farm irrigation efficiency program. |
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| 133 | 133 | | |
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| 134 | 134 | | H. As a condition of the grant, the university of Arizona cooperative extension shall require the qualified applicant that is approved to use grant monies to certify the installation of the new on-farm irrigation efficiency system, agree to use the new on-farm irrigation efficiency system for three years and report on the individual fields that receive the benefit of the monies in order to demonstrate water delivery reductions on the affected individual fields. |
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| 135 | 135 | | |
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| 136 | 136 | | I. Before December 31 of each year, the university of Arizona cooperative extension shall submit to the president of the senate and the speaker of the house of representatives a written report describing the activities of the university of Arizona cooperative extension for the preceding fiscal year related to expenditures from the on-farm irrigation efficiency fund for on-farm irrigation efficiency systems and shall provide a copy of the report to the secretary of state. The report shall include an accounting of expenditures from the fund and how the monies were used to implement on-farm irrigation efficiency systems. The report shall identify at least the following: |
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| 137 | 137 | | |
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| 138 | 138 | | 1. The specific fields and locations where on-farm irrigation efficiency systems were implemented. |
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| 139 | 139 | | |
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| 140 | 140 | | 2. The legal character of the water used on those specific fields. |
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| 141 | 141 | | |
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| 142 | 142 | | 3. The soil type and the types of crops produced. |
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| 143 | 143 | | |
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| 144 | 144 | | 4. The quantity of water conserved by implementing the on-farm irrigation efficiency system. |
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| 145 | 145 | | |
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| 146 | 146 | | 5. Any other relevant data to better inform future decisions on strategically deploying on-farm irrigation efficiency systems or programs to more efficiently use agricultural water in this state. |
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| 147 | 147 | | |
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| 148 | 148 | | J. For the purposes of this section: |
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| 149 | 149 | | |
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| 150 | 150 | | 1. "Farm unit" means one or more farms that are irrigated with groundwater, surface water, mainstream Colorado River water or water delivered through the central Arizona project and that are contiguous or in proximity to each other and with similar soil conditions. |
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| 151 | 151 | | |
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| 152 | 152 | | 2. "On-farm irrigation efficiency system" means a water delivery system consisting of all component parts and equipment necessary to deliver water to an irrigable field through a method other than flood irrigation. |
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| 153 | 153 | | |
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| 154 | 154 | | 3. "Qualified applicant" means an agricultural landowner or lessee of agricultural land with the landowner's consent required by state law to hold a grower permit issued by the department pursuant to section 3-363 that has actively farmed the land in three of the five calendar years immediately preceding the date of the application by using some quantity of groundwater, surface water, Colorado River water or water delivered through the central Arizona project.END_STATUTE |
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| 155 | 155 | | |
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| 156 | 156 | | Sec. 2. Section 41-1519, Arizona Revised Statutes, is amended to read: |
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| 157 | 157 | | |
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| 158 | 158 | | START_STATUTE41-1519. Computer data center tax relief; definitions |
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| 159 | 159 | | |
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| 160 | 160 | | A. From and after August 31, 2013, tax relief is allowed for the owner or operator of a computer data center certified pursuant to this section. The same tax relief is allowed for qualified colocation tenants of the computer data center. All tax relief applies during the qualification period. |
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| 161 | 161 | | |
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| 162 | 162 | | B. To qualify for the tax relief, the owner or operator shall submit to the authority an application on a form prescribed by the authority that includes all of the following: |
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| 163 | 163 | | |
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| 164 | 164 | | 1. The owner's or operator's name, address and telephone number. |
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| 165 | 165 | | |
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| 166 | 166 | | 2. The address of the site where the facility is or will be located, including, if applicable, information sufficient to identify the specific portion or portions of the facility composing the computer data center. |
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| 167 | 167 | | |
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| 168 | 168 | | 3. If the computer data center is to qualify under subsection E, paragraph 1 of this section, both of the following: |
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| 169 | 169 | | |
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| 170 | 170 | | (a) The anticipated investment associated with the computer data center for which the tax relief is being sought and whether the computer data center is anticipated to qualify as a sustainable redevelopment project. |
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| 171 | 171 | | |
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| 172 | 172 | | (b) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy one of the certification requirements prescribed in subsection E, paragraph 1 of this section and that the computer data center will not violate subsection M of this section. |
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| 173 | 173 | | |
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| 174 | 174 | | 4. If the computer data center is to qualify under subsection E, paragraph 2 of this section, an affirmation, signed by an authorized executive representing the owner or operator, that the computer data center has satisfied the certification requirements prescribed in subsection E, paragraph 2 of this section, whether the computer data center qualifies as a sustainable redevelopment project and that the computer data center will not violate subsection M of this section. |
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| 175 | 175 | | |
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| 176 | 176 | | C. Within sixty days after receiving a complete and correct application, the authority shall review the application and either issue a written certification that the computer data center qualifies for the tax relief or provide written reasons for its denial. Failure to approve or deny the application within sixty days after the date the owner or operator submits the application to the authority constitutes approval of the computer data center, and the authority shall issue written certification to the owner or operator within fourteen days. The effective date of the certification is either the date on which the application was submitted to the authority or a prospective date stated in the application that does not exceed five years after the date on which the application was submitted. The authority shall send a copy of the certification, including its effective date, to the department of revenue. The authority shall not certify any new computer data center that submits an application to the authority after December 31, 2033. |
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| 177 | 177 | | |
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| 178 | 178 | | D. An owner or operator may separate a facility into one or more computer data centers, which may each receive a separate certification if each computer data center individually meets the requirements prescribed in subsection E of this section. A portion of a facility or an article of computer data center equipment shall not be deemed to be a part of more than one computer data center. The owner or operator may aggregate one or more of the parcels, buildings, condominiums or modular data centers in a facility into a single computer data center if, in the aggregate, the parcels, buildings, condominiums and modular data centers meet the requirements of subsection E of this section. |
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| 179 | 179 | | |
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| 180 | 180 | | E. A computer data center must meet one of the following requirements after taking into account the combined investments made by the owner, operator or qualified colocation tenants of a computer data center: |
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| 181 | 181 | | |
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| 182 | 182 | | 1. On or before the fifth anniversary of certification, the computer data center creates a minimum investment of at least: |
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| 183 | 183 | | |
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| 184 | 184 | | (a) $25,000,000 of new investment, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement, if the computer data center is located in a county with a population of eight hundred thousand or less persons. |
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| 185 | 185 | | |
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| 186 | 186 | | (b) $50,000,000 of new investment, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement, if the computer data center is located in a county with a population of more than eight hundred thousand persons. |
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| 187 | 187 | | |
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| 188 | 188 | | 2. During the seventy-two months immediately before September 1, 2013, the computer data center created an investment of at least $250,000,000, including costs of land, buildings, improvements, modular data centers and computer data center equipment, whether owned or leased or paid for pursuant to a right to use agreement. |
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| 189 | 189 | | |
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| 190 | 190 | | F. On or before the fifth anniversary of the certification of a new computer data center, the owner or operator shall notify the authority in writing that the computer data center for which the certification is requested has or has not satisfied the requirements prescribed in subsection E, paragraph 1 of this section. Until a new computer data center satisfies the requirements prescribed in subsection E, paragraph 1 of this section, the owner or operator shall keep detailed records of all investment created by the new computer data center, including costs of land, buildings, improvements, modular data centers and computer data center equipment, and all tax relief directly received by the owner or operator. This subsection does not apply to an existing computer data center. |
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| 191 | 191 | | |
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| 192 | 192 | | G. If the authority determines that: |
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| 193 | 193 | | |
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| 194 | 194 | | 1. A new computer data center that is certified under subsection E, paragraph 1 of this section has not complied with the requirements and time periods prescribed by subsection E, paragraph 1 of this section, the authority shall revoke the computer data center's certification. If the certification is revoked, the qualification period of any owner, operator or qualified colocation tenant of the computer data center automatically terminates, and the department of revenue may recapture all or part of the tax relief provided directly to the owners and operators. A qualified colocation tenant is not subject to recapture of any part of tax relief received pursuant to this section, except that a contributing qualified colocation tenant may be subject to recapture if it is located in a computer data center that is certified from and after August 31, 2016. An owner or operator may appeal any revocation under this paragraph pursuant to chapter 6, article 10 of this title. |
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| 195 | 195 | | |
|---|
| 196 | 196 | | 2. There has been a violation of subsection M of this section with respect to a computer data center: |
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| 197 | 197 | | |
|---|
| 198 | 198 | | (a) The authority shall revoke the computer data center's certification and, if revoked, the qualification period of any owner, operator or qualified colocation tenant of the computer data center automatically terminates. |
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| 199 | 199 | | |
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| 200 | 200 | | (b) The department of revenue may not recapture any tax relief provided directly to the owner, operator or qualified colocation tenant before the date of revocation. |
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| 201 | 201 | | |
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| 202 | 202 | | (c) An owner or operator may appeal any revocation under this paragraph pursuant to chapter 6, article 10 of this title. |
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| 203 | 203 | | |
|---|
| 204 | 204 | | H. The authority and the department of revenue shall adopt rules and prescribe forms and procedures as necessary for the purposes of this section. The authority and the department shall collaborate in adopting rules as necessary to avoid duplication and inconsistencies while accomplishing the purposes of this section. The authority has exclusive authority over issues related to certification, including determinations as to whether a computer data center has satisfied the requirements of subsection E of this section, constitutes a qualified sustainable redevelopment project or has committed a violation of this section. The department of revenue has exclusive authority over the administration of tax relief. |
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| 205 | 205 | | |
|---|
| 206 | 206 | | I. Proprietary business information contained in the application described in subsection B of this section, the written notice described in subsection F of this section and the list described in subsection J of this section are confidential and shall not be disclosed to the public except that the information shall be transmitted to the department of revenue. The authority or the department may disclose the name of a computer data center that has been certified pursuant to this section. |
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| 207 | 207 | | |
|---|
| 208 | 208 | | J. The owner or operator shall provide the authority and the department of revenue with a list of qualified colocation tenants, including the commencement and expiration dates of each qualified colocation tenant's agreement to use or occupy all or part of the computer data center, and shall notify the authority and the department of any changes within thirty days. The failure of an owner or operator to provide the list or notify the authority and department of revenue of changes within the required time is not grounds for termination of the computer data center's certification, but may preclude unlisted colocation tenants from receiving tax relief until the list is provided or updated. |
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| 209 | 209 | | |
|---|
| 210 | 210 | | K. Except as provided in subsection G of this section, if a computer data center has been certified, the certification remains in effect, even in the event of a future transfer, sale or disposition, directly or indirectly, of the computer data center. |
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| 211 | 211 | | |
|---|
| 212 | 212 | | L. For the purposes of qualifying and continuing as a sustainable redevelopment project: |
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| 213 | 213 | | |
|---|
| 214 | 214 | | 1. After receiving certification, an owner may substantially demolish all or part of an existing building to the extent reasonably necessary to accommodate future computer data center use, and the demolition is not cause for loss of certification as a sustainable redevelopment project. An existing building that has been substantially demolished before certification is not eligible to qualify as a sustainable redevelopment project. |
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| 215 | 215 | | |
|---|
| 216 | 216 | | 2. An owner or operator may expand the boundaries of a certified computer data center by increasing the size of an existing building within a sustainable redevelopment project or by building additional improvements in an unlimited manner to the extent the expansion is constructed on the same parcel of land on which the original sustainable redevelopment project is located or on a contiguous parcel, regardless of whether the contiguous parcel was within the original description of the boundaries of the certified computer data center. Expansion activities do not prevent a facility from maintaining its classification as a sustainable redevelopment project. |
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| 217 | 217 | | |
|---|
| 218 | 218 | | 3. All construction activities and investments related to demolition and expansion activities described in this subsection are considered to be a part of the sustainable redevelopment project. |
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| 219 | 219 | | |
|---|
| 220 | 220 | | M. This section does not allow a computer data center to do either of the following: |
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| 221 | 221 | | |
|---|
| 222 | 222 | | 1. Generate electricity for resale purposes. |
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| 223 | 223 | | |
|---|
| 224 | 224 | | 2. Generate, provide or sell electricity outside of the computer data center. |
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| 225 | 225 | | |
|---|
| 226 | 226 | | N. The owner or operator may be a single individual or entity or multiple affiliated entities. |
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| 227 | 227 | | |
|---|
| 228 | 228 | | O. For the purposes of this section: |
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| 229 | 229 | | |
|---|
| 230 | 230 | | 1. "Computer data center" means all or part of a facility that may be composed of multiple businesses or owners, that is or will be predominantly used to house working servers and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. |
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| 231 | 231 | | |
|---|
| 232 | 232 | | 2. "Computer data center equipment" means equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements and upgrades to this equipment, regardless of whether affixed to or incorporated into real property, and whether owned, leased or used by the owner or operator pursuant to a contract for the right to use the equipment, including: |
|---|
| 233 | 233 | | |
|---|
| 234 | 234 | | (a) All equipment necessary for the transformation, generation, distribution or management of electricity that is required to operate computer server equipment, including generators, uninterruptible energy, supplies, conduit, gaseous fuel piping, cabling, duct banks, switches, switchboards, batteries and testing equipment. |
|---|
| 235 | 235 | | |
|---|
| 236 | 236 | | (b) All equipment necessary to cool and maintain a controlled environment for the operation of the computer server and other components of the computer data center, including mechanical equipment, refrigerant piping, gaseous fuel piping, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters. |
|---|
| 237 | 237 | | |
|---|
| 238 | 238 | | (c) All water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water. |
|---|
| 239 | 239 | | |
|---|
| 240 | 240 | | (d) All enabling software, computer server equipment, chassis, networking equipment, switches, racks, cabling, trays and conduit. |
|---|
| 241 | 241 | | |
|---|
| 242 | 242 | | (e) All monitoring equipment and security systems. |
|---|
| 243 | 243 | | |
|---|
| 244 | 244 | | (f) Modular data centers and preassembled components of any item described in this paragraph, including components used in the manufacturing of modular data centers. |
|---|
| 245 | 245 | | |
|---|
| 246 | 246 | | (g) Other tangible personal property that is essential to the operations of a computer data center. |
|---|
| 247 | 247 | | |
|---|
| 248 | 248 | | 3. "Contributing qualified colocation tenant" means a qualified colocation tenant that is an operator or that had its anticipated investment included in an application for certification for the purposes of satisfying subsection E, paragraph 1 of this section. |
|---|
| 249 | 249 | | |
|---|
| 250 | 250 | | 4. "Existing building" means any existing vertical building improvement located at a facility used for commercial purposes at the time of its acquisition by an owner, but not including single family residential structures, barns or other agricultural structures. |
|---|
| 251 | 251 | | |
|---|
| 252 | 252 | | 5. "Existing computer data center" means a computer data center that is certified under subsection E, paragraph 2 of this section. |
|---|
| 253 | 253 | | |
|---|
| 254 | 254 | | 6. "Facility" means one or more parcels of land in this state and any structures and personal property contained on the land. |
|---|
| 255 | 255 | | |
|---|
| 256 | 256 | | 7. "Investment" means all monies spent to acquire a facility regardless of prior use and all monies spent to construct or expand a computer data center, including costs of land, buildings, improvements, modular data centers and computer data center equipment. For new data centers, investment includes all costs incurred on or after a date that is thirty days before the date the application is submitted to the authority. |
|---|
| 257 | 257 | | |
|---|
| 258 | 258 | | 8. "Modular data center" means a portable system of information technology, climate control, energy supply and energy distribution machinery, equipment and related tangible personal property contained in an intermodal freight container or similar structure. |
|---|
| 259 | 259 | | |
|---|
| 260 | 260 | | 9. "New computer data center" means a computer data center that is certified under subsection E, paragraph 1 of this section. |
|---|
| 261 | 261 | | |
|---|
| 262 | 262 | | 10. "Operator" means any individual or entity that operates a computer data center as an operator or lessor or pursuant to a contract with an owner or lessor. Operator includes a licensed property management company, a property lessor or any other individual or entity responsible for the control, oversight or maintenance of a facility. |
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| 263 | 263 | | |
|---|
| 264 | 264 | | 11. "Qualification period" means: |
|---|
| 265 | 265 | | |
|---|
| 266 | 266 | | (a) With respect to the owner or operator of a computer data center, a period of time beginning on the effective date of the computer data center's certification and expiring at the end of the tenth fifth full calendar year following the calendar year containing the effective date, except, if a computer data center is a sustainable redevelopment project, qualification period means a period of time beginning on the effective date of the computer data center's certification and expiring at the end of the twentieth tenth full calendar year following the calendar year containing the effective date. |
|---|
| 267 | 267 | | |
|---|
| 268 | 268 | | (b) With respect to the qualified colocation tenant of the owner or operator of a computer data center certified under this section, a period of time beginning on the date that the qualified colocation tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the tenth fifth full calendar year following the calendar year in which the qualified colocation tenant entered into the agreement, except, if a computer data center is a sustainable redevelopment project, qualification period means a period of time beginning on the date that the qualified colocation tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the twentieth tenth full calendar year following the calendar year in which the tenant entered into the agreement. The qualification period for a qualified colocation tenant may not extend beyond the qualification period for the owner or operator of the computer data center. |
|---|
| 269 | 269 | | |
|---|
| 270 | 270 | | 12. "Qualified colocation tenant" means an entity that contracts with the owner, the operator or another qualified colocation tenant of a computer data center that is certified pursuant to this section to use or occupy all or part of the computer data center for at least five hundred kilowatts per month for a period of two or more years. |
|---|
| 271 | 271 | | |
|---|
| 272 | 272 | | 13. "Sustainable redevelopment project" means a computer data center that satisfies the requirements in subsection E of this section and is either: |
|---|
| 273 | 273 | | |
|---|
| 274 | 274 | | (a) A newly constructed data center, with at least a $200,000,000 investment, that attains certification under the energy star or green globes standard, the leadership in energy and environmental design green building rating standard developed by the United States green building council or an equivalent green building standard and was not previously certified under these standards. |
|---|
| 275 | 275 | | |
|---|
| 276 | 276 | | (b) A data center that occupies an existing facility that either: |
|---|
| 277 | 277 | | |
|---|
| 278 | 278 | | (i) Was at least fifty percent vacant for six of the twelve consecutive months before the acquisition by purchase or lease of or with respect to the facility. |
|---|
| 279 | 279 | | |
|---|
| 280 | 280 | | (ii) Attains certification under the energy star or green globes standard, the leadership in energy and environmental design green building rating standard developed by the United States green building council or an equivalent green building standard and was not previously certified under these standards. |
|---|
| 281 | 281 | | |
|---|
| 282 | 282 | | 14. "Tax relief" means the deductions of the gross proceeds of sale or gross income from the sale, use, installation, assembly, repair or maintenance of computer data center equipment as prescribed by sections 42-5061, 42-5075, 42-5159 and 42-6004 for use at a computer data center. END_STATUTE |
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| 283 | 283 | | |
|---|
| 284 | 284 | | Sec. 3. Section 42-5010, Arizona Revised Statutes, is amended to read: |
|---|
| 285 | 285 | | |
|---|
| 286 | 286 | | START_STATUTE42-5010. Rates; distribution base |
|---|
| 287 | 287 | | |
|---|
| 288 | 288 | | A. The tax imposed by this article is levied and shall be collected at the following rates: |
|---|
| 289 | 289 | | |
|---|
| 290 | 290 | | 1. Five percent of the tax base as computed for the business of every person engaging or continuing in this state in the following business classifications described in article 2 of this chapter: |
|---|
| 291 | 291 | | |
|---|
| 292 | 292 | | (a) Transporting classification. |
|---|
| 293 | 293 | | |
|---|
| 294 | 294 | | (b) Utilities classification. |
|---|
| 295 | 295 | | |
|---|
| 296 | 296 | | (c) Telecommunications classification. |
|---|
| 297 | 297 | | |
|---|
| 298 | 298 | | (d) Pipeline classification. |
|---|
| 299 | 299 | | |
|---|
| 300 | 300 | | (e) Private car line classification. |
|---|
| 301 | 301 | | |
|---|
| 302 | 302 | | (f) Publication classification. |
|---|
| 303 | 303 | | |
|---|
| 304 | 304 | | (g) Job printing classification. |
|---|
| 305 | 305 | | |
|---|
| 306 | 306 | | (h) Prime contracting classification. |
|---|
| 307 | 307 | | |
|---|
| 308 | 308 | | (i) Amusement classification. |
|---|
| 309 | 309 | | |
|---|
| 310 | 310 | | (j) Restaurant classification. |
|---|
| 311 | 311 | | |
|---|
| 312 | 312 | | (k) Personal property rental classification. |
|---|
| 313 | 313 | | |
|---|
| 314 | 314 | | (l) Retail classification and amounts equal to retail transaction privilege tax due pursuant to section 42-5008.01. |
|---|
| 315 | 315 | | |
|---|
| 316 | 316 | | 2. Five and one-half percent of the tax base as computed for the business of every person engaging or continuing in this state in: |
|---|
| 317 | 317 | | |
|---|
| 318 | 318 | | (a) The transient lodging classification described in section 42-5070. |
|---|
| 319 | 319 | | |
|---|
| 320 | 320 | | (b) The online lodging marketplace classification described in section 42-5076 who has entered into an agreement with the department to register for, or has otherwise obtained from the department, a license to collect tax pursuant to section 42-5005, subsection L. |
|---|
| 321 | 321 | | |
|---|
| 322 | 322 | | 3. Three and one-eighth percent of the tax base as computed for the business of every person engaging or continuing in this state in the mining classification described in section 42-5072. |
|---|
| 323 | 323 | | |
|---|
| 324 | 324 | | 4. Zero percent of the tax base as computed for the business of every person engaging or continuing in this state in the commercial lease classification described in section 42-5069. |
|---|
| 325 | 325 | | |
|---|
| 326 | 326 | | B. Except as provided by subsection J of this section, twenty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (a) through (h) of this section is designated as distribution base for the purposes of section 42-5029. |
|---|
| 327 | 327 | | |
|---|
| 328 | 328 | | C. Forty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (i) through (l) of this section is designated as distribution base for the purposes of section 42-5029. |
|---|
| 329 | 329 | | |
|---|
| 330 | 330 | | D. Thirty-two percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 3 of this section is designated as distribution base for the purposes of section 42-5029. |
|---|
| 331 | 331 | | |
|---|
| 332 | 332 | | E. Fifty-three and one-third percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 4 of this section is designated as distribution base for the purposes of section 42-5029. |
|---|
| 333 | 333 | | |
|---|
| 334 | 334 | | F. Fifty percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 2 of this section is designated as distribution base for the purposes of section 42-5029. |
|---|
| 335 | 335 | | |
|---|
| 336 | 336 | | G. In addition to the rates prescribed by subsection A of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment is imposed and shall be collected through June 30, 2021. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection A of this section. The department shall separately account for the revenues collected with respect to the rates imposed pursuant to this subsection and the state treasurer shall distribute all of those revenues in the manner prescribed by section 42-5029, subsection E. The rates imposed pursuant to this subsection shall not be considered local revenues for purposes of article IX, section 21, Constitution of Arizona. The additional tax rate increment is levied at the rate of six-tenths of one per cent of the tax base of every person engaging or continuing in this state in a business classification listed in subsection A, paragraph 1 of this section. |
|---|
| 337 | 337 | | |
|---|
| 338 | 338 | | H. Any increase in the rate of tax that is imposed by this chapter and that is enacted by the legislature or by a vote of the people does not apply with respect to contracts entered into by prime contractors or pursuant to written bids made by prime contractors on or before the effective date of the legislation or the date of the election enacting the increase. To qualify for the exemption under this subsection, the prime contractor must maintain sufficient documentation, in a manner and form prescribed by the department, to verify the date of the contract or written bid. |
|---|
| 339 | 339 | | |
|---|
| 340 | 340 | | I. For taxpayers that are taxable under this chapter other than prime contractors taxable pursuant to section 42-5075: |
|---|
| 341 | 341 | | |
|---|
| 342 | 342 | | 1. Any increase in the rate of tax that is levied by this article or article 2 of this chapter enacted by the legislature or by a vote of the people does not apply for a period of one hundred twenty days from after the date of the tax rate increase to the gross proceeds of sales or gross income from the business of the taxpayer with respect to written contracts entered into before the effective date of the tax rate increase unless the taxpayer has entered into a contract that contains a provision that entitles the taxpayer to recover from the purchaser the amount of the additional tax levied. |
|---|
| 343 | 343 | | |
|---|
| 344 | 344 | | 2. The provisions of this subsection apply without regard to the accounting method used by the taxpayer to report the taxes imposed under article 2 of this chapter. |
|---|
| 345 | 345 | | |
|---|
| 346 | 346 | | 3. The provisions of this subsection shall not be considered in determining the rate of tax imposed under chapter 6, article 3 of this title. |
|---|
| 347 | 347 | | |
|---|
| 348 | 348 | | J. Zero percent of the tax revenues that are collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classification listed in subsection A, paragraph 1, subdivision (h) of this section, and that are subject to any distribution required by section 42-5032.02, is designated as distribution base for the purposes of section 42-5029 until the total amount subject to distribution pursuant to section 42-5032.02 has reached the maximum amount prescribed by section 42-5032.02, subsection C. Thereafter, twenty percent of the remaining tax revenues is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section. |
|---|
| 349 | 349 | | |
|---|
| 350 | 350 | | K. For the ten-year period after the qualification period for tax relief under section 41-1519 expires, zero percent of the tax revenues that are collected at the rate prescribed by subsection A of this section from persons that engage in business under the business classifications listed in subsection A, paragraph 1, subdivisions (h) and (l) of this section from transactions with a computer data center, qualified colocation tenant or sustainable redevelopment project that received tax relief under section 41-1519 and are subject to distribution pursuant to section 42-5032.03 is designated as distribution base of the purposes of section 42-5029. Thereafter, twenty percent of the remaining tax revenues is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section for the business classification listed in subsection A, paragraph 1, subdivision (h) of this section and forty percent for the business classification listed in subsection A, paragraph 1, subdivision (l) of this section. For the purposes of this subsection, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE |
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| 351 | 351 | | |
|---|
| 352 | 352 | | Sec. 4. Section 42-5029, Arizona Revised Statutes, is amended to read: |
|---|
| 353 | 353 | | |
|---|
| 354 | 354 | | START_STATUTE42-5029. Remission and distribution of monies; withholding; definition |
|---|
| 355 | 355 | | |
|---|
| 356 | 356 | | A. The department shall deposit, pursuant to sections 35-146 and 35-147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42-1116, separately accounting for: |
|---|
| 357 | 357 | | |
|---|
| 358 | 358 | | 1. Payments of estimated tax under section 42-5014, subsection D. |
|---|
| 359 | 359 | | |
|---|
| 360 | 360 | | 2. Revenues collected pursuant to section 42-5070. |
|---|
| 361 | 361 | | |
|---|
| 362 | 362 | | 3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state. |
|---|
| 363 | 363 | | |
|---|
| 364 | 364 | | 4. Revenues collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D. |
|---|
| 365 | 365 | | |
|---|
| 366 | 366 | | 5. Revenues collected pursuant to section 42-5010.01 and section 42-5155, subsection E. |
|---|
| 367 | 367 | | |
|---|
| 368 | 368 | | 6. Revenues collected pursuant to section 42-5061 from a remote seller. |
|---|
| 369 | 369 | | |
|---|
| 370 | 370 | | 7. Revenues collected pursuant to section 42-5010, subsection K and section 42-5155, subsection H. |
|---|
| 371 | 371 | | |
|---|
| 372 | 372 | | B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account. The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-5010, 42-5164 and 42-5205. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter. |
|---|
| 373 | 373 | | |
|---|
| 374 | 374 | | C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-5164 and 42-5205, after deducting warrants drawn against the account pursuant to sections 42-1118 and 42-1254. |
|---|
| 375 | 375 | | |
|---|
| 376 | 376 | | D. Of the monies designated as distribution base, the department shall: |
|---|
| 377 | 377 | | |
|---|
| 378 | 378 | | 1. Pay twenty-five percent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose, except a municipality shall use monies paid from revenues separately accounted for pursuant to subsection A, paragraph 6 of this section and paid pursuant to this paragraph for public safety before any other municipal purpose. |
|---|
| 379 | 379 | | |
|---|
| 380 | 380 | | 2. Pay 38.08 percent to the counties in this state by averaging the following proportions: |
|---|
| 381 | 381 | | |
|---|
| 382 | 382 | | (a) The proportion that the population of each county bears to the total state population. |
|---|
| 383 | 383 | | |
|---|
| 384 | 384 | | (b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout the this state for the calendar month. |
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| 385 | 385 | | |
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| 386 | 386 | | 3. Pay an additional 2.43 percent to the counties in this state as follows: |
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| 387 | 387 | | |
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| 388 | 388 | | (a) Average the following proportions: |
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| 389 | 389 | | |
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| 390 | 390 | | (i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item. |
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| 391 | 391 | | |
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| 392 | 392 | | (ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout this state for the calendar month. |
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| 393 | 393 | | |
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| 394 | 394 | | (b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection. |
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| 395 | 395 | | |
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| 396 | 396 | | 4. After any distributions required by sections 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01 and 42-5032.02, and after making any transfer to the water quality assurance revolving fund as required by section 49-282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund. From this amount the legislature shall annually appropriate to: |
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| 397 | 397 | | |
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| 398 | 398 | | (a) The department of revenue, sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter. |
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| 399 | 399 | | |
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| 400 | 400 | | (b) The department of economic security, monies to be used for the purposes stated in title 46, chapter 1. |
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| 401 | 401 | | |
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| 402 | 402 | | (c) The firearms safety and ranges fund established by section 17-273, $50,000 derived from the taxes collected from the retail classification pursuant to section 42-5061 for the current fiscal year. |
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| 403 | 403 | | |
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| 404 | 404 | | E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows: |
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| 405 | 405 | | |
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| 406 | 406 | | 1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one-twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15-2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations. |
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| 407 | 407 | | |
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| 408 | 408 | | 2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities for the purpose of investment in technology and research-based initiatives. |
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| 409 | 409 | | |
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| 410 | 410 | | 3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs. |
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| 411 | 411 | | |
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| 412 | 412 | | 4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42-5031.01, subsection D. |
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| 413 | 413 | | |
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| 414 | 414 | | 5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases enacted in 2000: |
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| 415 | 415 | | |
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| 416 | 416 | | (a) In fiscal year 2001-2002, $15,305,900. |
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| 417 | 417 | | |
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| 418 | 418 | | (b) In fiscal year 2002-2003, $31,530,100. |
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| 419 | 419 | | |
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| 420 | 420 | | (c) In fiscal year 2003-2004, $48,727,700. |
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| 421 | 421 | | |
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| 422 | 422 | | (d) In fiscal year 2004-2005, $66,957,200. |
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| 423 | 423 | | |
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| 424 | 424 | | (e) In fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500. |
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| 425 | 425 | | |
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| 426 | 426 | | 6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15-154.01. |
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| 427 | 427 | | |
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| 428 | 428 | | 7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15-241 and title 15, chapter 9, article 8. |
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| 429 | 429 | | |
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| 430 | 430 | | 8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241. |
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| 431 | 431 | | |
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| 432 | 432 | | 9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43-1072.01. |
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| 433 | 433 | | |
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| 434 | 434 | | 10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated as follows in the manner prescribed by section 15-977: |
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| 435 | 435 | | |
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| 436 | 436 | | (a) Forty per cent shall be allocated for teacher compensation based on performance. |
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| 437 | 437 | | |
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| 438 | 438 | | (b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses. |
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| 439 | 439 | | |
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| 440 | 440 | | (c) Forty per cent shall be allocated for maintenance and operation purposes. |
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| 441 | 441 | | |
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| 442 | 442 | | F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42-5030.01. |
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| 443 | 443 | | |
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| 444 | 444 | | G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by 1/36 of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten percent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered. |
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| 445 | 445 | | |
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| 446 | 446 | | H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41-2257 or 41-2258 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section. |
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| 447 | 447 | | |
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| 448 | 448 | | I. Except as provided by sections 42-5033 and 42-5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section. |
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| 449 | 449 | | |
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| 450 | 450 | | J. Except as otherwise provided by this subsection, on notice from the department of revenue pursuant to section 42-6010, subsection B, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city or town the amount of the penalty for business location municipal tax incentives provided by the city or town to a business entity that locates a retail business facility in the city or town. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount of the penalty has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. The state treasurer shall not withhold any amount that the city or town certifies to the department of revenue and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the city or town that were issued or incurred before the location incentives provided by the city or town. |
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| 451 | 451 | | |
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| 452 | 452 | | K. On notice from the auditor general pursuant to section 9-626, subsection D, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city the amount computed pursuant to section 9-626, subsection D. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount specified in the notice has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. |
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| 453 | 453 | | |
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| 454 | 454 | | L. Except as otherwise provided by this subsection, on notice from the attorney general pursuant to section 41-194.01, subsection B, paragraph 1 that an ordinance, regulation, order or other official action adopted or taken by the governing body of a county, city or town violates state law or the Constitution of Arizona, the state treasurer shall withhold the distribution of monies pursuant to this section to the affected county, city or town and shall continue to withhold monies pursuant to this subsection until the attorney general certifies to the state treasurer that the violation has been resolved. The state treasurer shall redistribute the monies withheld pursuant to this subsection among all other counties, cities and towns in proportion to their population as provided by subsection D of this section. The state treasurer shall not withhold any amount that the county, city or town certifies to the attorney general and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the county, city or town that were issued or incurred before committing the violation. |
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| 455 | 455 | | |
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| 456 | 456 | | M. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409. END_STATUTE |
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| 457 | 457 | | |
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| 458 | 458 | | Sec. 5. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5032.03, to read: |
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| 459 | 459 | | |
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| 460 | 460 | | START_STATUTE42-5032.03. Distribution of revenues for water infrastructure; definitions |
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| 461 | 461 | | |
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| 462 | 462 | | A. Each month the state treasurer shall deposit, pursuant to sections 35-146 and 35-147, the monies collected from persons engaging in business under the business classifications listed in section 42-5010, subsection A, paragraph 1, subdivisions (h) and (l) from transactions with a computer data center, qualified colocation tenant or sustainable redevelopment project whose qualification period for tax relief under section 41-1519 expired for the ten-year period after the qualification period under section 41-1519 expired as follows: |
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| 463 | 463 | | |
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| 464 | 464 | | 1. Fifty percent of the monies collected in the water conservation grant fund established by section 49-1331. |
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| 465 | 465 | | |
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| 466 | 466 | | 2. Fifty percent of the monies collected in the on-farm irrigation efficiency fund established by section 3-129. |
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| 467 | 467 | | |
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| 468 | 468 | | B. For the purposes of this section, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE |
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| 469 | 469 | | |
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| 470 | 470 | | Sec. 6. Section 42-5155, Arizona Revised Statutes, is amended to read: |
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| 471 | 471 | | |
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| 472 | 472 | | START_STATUTE42-5155. Levy of tax; tax rate; purchaser's liability |
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| 473 | 473 | | |
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| 474 | 474 | | A. There is levied and imposed an excise tax on the storage, use or consumption in this state of tangible personal property purchased from a retailer or utility business, as a percentage of the sales price. A manufactured building purchased outside this state and set up in this state is subject to tax under this section and in this case the rate is a percentage of sixty-five percent of the sales price. |
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| 475 | 475 | | |
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| 476 | 476 | | B. The tax imposed by this section applies to any purchaser that purchased tangible personal property for resale but subsequently uses or consumes the property. |
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| 477 | 477 | | |
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| 478 | 478 | | C. The tax rate shall equal the rate of tax prescribed by section 42-5010, subsection A as applied to retailers and utility businesses according to the respective classification under articles 1 and 2 of this chapter for the same type of transaction or business activity. |
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| 479 | 479 | | |
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| 480 | 480 | | D. In addition to the rate prescribed by subsection C of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment of six-tenths of one per cent is imposed and shall be collected through June 30, 2021. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection C of this section. The department shall separately account for the revenues collected with respect to the rate imposed pursuant to this subsection, and the state treasurer shall pay all of those revenues in the manner prescribed by section 42-5029, subsection E. |
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| 481 | 481 | | |
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| 482 | 482 | | E. From and after June 30, 2021 through June 30, 2041, in addition to the rate prescribed by subsection C of this section, an additional rate increment of six-tenths of one percent is imposed and shall be collected. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection C of this section. The department shall separately account for the revenues collected with respect to the rate imposed pursuant to this subsection, and the state treasurer shall pay all of those revenues in the manner prescribed by section 42-5029.02, subsection A. |
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| 483 | 483 | | |
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| 484 | 484 | | F. Every person storing, using or consuming in this state tangible personal property purchased from a retailer or utility business is liable for the tax. The person's liability is not extinguished until the tax has been paid to this state. |
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| 485 | 485 | | |
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| 486 | 486 | | G. A receipt from a retailer or utility business that maintains a place of business in this state or from a retailer or utility business that is authorized by the department to collect the tax, under such rules as it may prescribe, and that is for the purposes of this article regarded as a retailer or utility business maintaining a place of business in this state, given to the purchaser as provided in section 42-5161 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. |
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| 487 | 487 | | |
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| 488 | 488 | | H. For the ten-year period after the qualification period for tax relief under section 41-1519 expires, the revenues collected pursuant to this section from a computer data center, qualified colocation tenant or sustainable redevelopment project that received tax relief under section 41-1519 shall be deposited pursuant to section 42-5032.03. For the purposes of this subsection, "Computer data center", "qualification period", "qualified colocation tenant", "sustainable redevelopment project" and "tax relief" have the same meanings prescribed in section 41-1519. END_STATUTE |
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| 489 | 489 | | |
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| 490 | 490 | | Sec. 7. Section 49-1331, Arizona Revised Statutes, is amended to read: |
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| 491 | 491 | | |
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| 492 | 492 | | START_STATUTE49-1331. Water conservation grant fund; exemption; administration; report |
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| 493 | 493 | | |
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| 494 | 494 | | A. The water conservation grant fund is established to be maintained in perpetuity consisting of all the following: |
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| 495 | 495 | | |
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| 496 | 496 | | 1. Legislative appropriations. |
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| 497 | 497 | | |
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| 498 | 498 | | 2. Monies received for water conservation purposes from the United States government. |
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| 499 | 499 | | |
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| 500 | 500 | | 3. Interest and other income received from investing monies in the fund. |
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| 501 | 501 | | |
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| 502 | 502 | | 4. Gifts, grants and donations received for water conservation purposes from any public or private source. |
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| 503 | 503 | | |
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| 504 | 504 | | 5. Monies deposited pursuant to section 42-5032.03. |
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| 505 | 505 | | |
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| 506 | 506 | | 5. 6. Any other monies received by the authority in connection with the purpose of the fund. |
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| 507 | 507 | | |
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| 508 | 508 | | B. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. |
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| 509 | 509 | | |
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| 510 | 510 | | C. All monies deposited in the fund shall be held in trust. The monies in the fund may not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the state general fund unless approved by a three-fourths vote of the members of each house of the legislature. This subsection does not apply to any taxes or other levies that are imposed pursuant to title 42 or 43. |
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| 511 | 511 | | |
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| 512 | 512 | | D. The authority shall administer the fund and establish as many other accounts and subaccounts as required to administer the fund. |
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| 513 | 513 | | |
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| 514 | 514 | | E. Monies and other assets in the fund shall be used solely for the purposes authorized by this article. |
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| 515 | 515 | | |
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| 516 | 516 | | F. The annual report required by section 49-1204 shall include: |
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| 517 | 517 | | |
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| 518 | 518 | | 1. The expenditures made from the fund in the previous fiscal year. |
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| 519 | 519 | | |
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| 520 | 520 | | 2. Whether programs or projects funded by the fund in the previous fiscal year did in fact: |
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| 521 | 521 | | |
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| 522 | 522 | | (a) Result in long-term, sustainable reductions in water use. |
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| 523 | 523 | | |
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| 524 | 524 | | (b) Improve water use efficiency. |
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| 525 | 525 | | |
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| 526 | 526 | | (c) Improve water reliability. |
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| 527 | 527 | | |
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| 528 | 528 | | 3. The environmental impacts of programs or projects funded by the fund in the previous fiscal year. END_STATUTE |
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| 529 | 529 | | |
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| 530 | 530 | | Sec. 8. Applicability |
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| 531 | 531 | | |
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| 532 | 532 | | This act applies to qualification periods as defined in section 41-1519, Arizona Revised Statutes, that begin from and after the effective date of this act. |
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