FACT SHEET FOR S.B. 1221
Urban Revenue Sharing; Distribution Freeze
Limits distribution of urban revenue sharing monies, until FY 2029, to the net proceed amount collected in FY 2010 and distributed in FY 2012.
The Urban Revenue Sharing (URS) program provides that a percentage of state income tax revenues (including both individual and corporate income tax) be shared with incorporated cities and town within the state. The amount that is currently distributed to cities and towns is 15% of net income tax collections from two years prior. Total URS distributions reached a peak of $728 million in FY 2009, declined to $629 million in FY 2010, and will decline from $474.0 million in FY 2011 to $424.4 million in FY 2012.
The passage of S.B. 1221 would result in a net positive gain of any state income tax revenues retained in the state general fund that would have otherwise been distributed to the cities by the URS formula.
1. Limits distribution of urban revenue sharing monies, until FY 2029, to the net proceed amount collected in FY 2010 and distributed in FY 2012.
2. Requires any excess amount to be credited to the state general fund and appropriated to:
a) pay lease-purchase and sale and leaseback agreements relating to state capital assets, and
b) supplant all or part of TPT payments for the Phoenix Civic Plaza Convention Center and Rio Nuevo.
3. Restores urban revenue sharing monies, beginning in FY 2031, to the present distribution.
4. Stipulates that upon restoration of current funding in FY 2031, the distribution to the water quality assurance revolving fund shall not affect the calculation of net proceeds.
5. Becomes effective on the general effective date.
· Corrects the net proceed distribution freeze dates.