Budget & Taxes (Property Tax)

HB 2933 establishes a tiered annual fee for entities transporting groundwater out of a county where it was withdrawn. The fee ranges from $3 to $30 per acre-foot based on total volume transported (e.g., $3 for 0-1 million acre-feet, $30 for over 5 million), adjusted yearly using GDP inflation. Collected fees become general county funds deposited into the county’s general fund. The bill also allows credits against fees for property tax increases from remote municipal land, donated land with groundwater restrictions, or intergovernmental agreements. This primarily affects agricultural or municipal entities moving groundwater across county lines.

HB 2932 imposes an annual fee on entities transporting groundwater across county lines in Arizona, directly affecting agricultural, municipal, and industrial users moving water between counties. The fee ranges from $3 to $30 per acre-foot based on cumulative transportation volume (e.g., $3 for 0-1 million acre-feet, $30 for over 5 million). It requires the director to post the fee schedule on a website and annually adjust fees using the GDP price deflator. The bill also establishes credit mechanisms for property tax increases, donated land with groundwater restrictions, or intergovernmental agreements.

SB 1044 would exempt virtual currency from property taxation in Arizona, directly affecting owners of digital assets like cryptocurrencies who hold them as property. The bill defines virtual currency as a digital medium of exchange, unit of account, and store of value - excluding U.S. dollars or foreign currencies - and specifies it would be tax-exempt under state property tax rules. However, the exemption would only take effect if Arizona voters approve a constitutional amendment at the next general election, as required by the bill’s conditional enactment clause. This proposal does not alter current tax treatment but seeks to establish a new exemption for virtual currency assets.