HB 2389 Arizona House · 57th Legislature - First Regular Session

business personal property; exemption.

HB 2389 amends Arizona school district boundary procedures to require detailed tax calculations for voters. It mandates that school superintendents include specific property tax estimates for businesses (based on Class One valuation) and homes at different valuations in election materials when proposing new school district boundaries or unification. The bill affects residents and businesses in unorganized territory seeking to join adjacent school districts, as well as school districts forming unified systems. Key provisions require disclosure of primary/secondary property tax impacts under four scenarios, including average business valuation. The bill title ("business personal property; exemption") misrepresents its actual focus on tax disclosure requirements, not creating exemptions.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
House Passage
Feb 2025
Senate Passage
Governor
Introduced Jan 23, 2025 Last action Mar 18, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version House Engrossed Version · 6 edits · Feb 25, 2025
MODERATE
This bill amends Arizona Revised Statutes to update school district consolidation and unification procedures, modify budget override election requirements, and revise tax exemptions for prime contracting and manufacturing businesses. The changes clarify how school districts can merge, establish clearer rules for unified school district governance, and update tax deduction thresholds and definitions for construction and manufacturing activities.
Scope change
The bill expands the scope of school district consolidation options and modifies the applicability of budget override provisions for small school districts and specific business classifications.
REQUIREMENT

School district unification now requires a public vote and pamphlet distribution at least 90 days before the governing boards vote, replacing the previous automatic effective date.

New provisions require unified school districts to maintain teacher base compensation and years of employment from prior districts during the first year of operation.

ELIGIBILITY

Budget override limits for small school districts are recalculated using specific formulas based on student counts and support level weights, with maximum periods capped at five years for certain overrides.

Tax exemptions for prime contracting now include additional deductions for environmental technology facilities, mixed waste processing facilities, and development fees, with updated definitions for landscaping and design services.

DEFINITION

New definitions clarify 'construction phase services' and 'design phase services' for prime contracting, separating them from taxable construction activities.

TIMELINE

Budget override elections for capital improvements must be held on the first Tuesday after the first Monday in November, with specific ballot language requirements and legislative council review processes.

Floor votes · House Feb 25, 2025

How they voted

3327
Passed
Total votes 60
Feb 25, 2025
D Democratic27
27 Nay
100% Nay
R Republican33
33 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
5
Committee
2
Amendments
2
Mar 18, 2025
Upper · Passed
DP
upper
Mar 10, 2025
Upper · Passed
DP
upper
Feb 25, 2025
Lower · Passed
PASSED
lower
Feb 20, 2025
Lower · Passed
DPA
lower
Feb 12, 2025
Lower · Passed
DPA
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Neal Carter
Neal Carter
RRepublican
AZ
15