Arizona SB 1293: health insurance; hearing aids; children

Bill Text

SB1293 - 572R - S Ver 

 Senate Engrossed

 GPLET; abatement; 
 limitation

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 SENATE BILL 1293

AN 
ACT

amending section 42-6209, Arizona 
Revised Statutes; relating to government property lease excise tax.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it 
enacted by the Legislature of the State of Arizona:

Section 1.1. Section 
42-6209, Arizona Revised Statutes, is amended to read:

START_STATUTE42-6209. Abatement of tax for government property improvements in single 
central business district; definition

A. A city or town may abate the tax provided for 
under this article for a limited period beginning when the certificate of 
occupancy is issued and ending eight years after the certificate of occupancy 
is issued on a government property improvement that is constructed either 
before or after July 20, 1996 and that meets the following requirements:

1. The government property improvement 
is located in a single central business district in the city or town and is 
subject to a lease or development agreement entered into on or after April 1, 
1985.� For the purposes of this section:

(a) A city or town shall not designate more than one 
central business district within its corporate boundaries.

(b) A city or town shall not approve or enter into a 
development agreement or lease for a government property improvement within one 
year after the designation of the central business district in which the government property improvement is located.

(c) "Central business district" means a 
single and contiguous geographical area that is designated by resolution of the 
governing body of the city or town and that is geographically compact and not 
larger than the greatest of the existing total land area of the central 
business district of the city or town as of January 1, 2018, two and one-half 
percent of the total land area within the exterior boundaries of the city or 
town or nine hundred sixty acres. For the purposes of this 
subdivision, any central business district formed before January 1, 2018 
is considered to be geographically compact. For the expanded areas 
of an existing central business district only and the new designation of a 
central business district formed on or after January 1, 2018 and for the 
purposes of this subdivision, "geographically compact" means a form 
or shape that has a length that is not more than twice its width as measured 
from at least four points on the exterior boundary of the expanded areas of an 
existing central business district or a central business district formed on or 
after January 1, 2018.

2. The government property improvement 
is located entirely within a slum or blighted area that is designated pursuant 
to title 36, chapter 12, article 3.

3. The government property improvement resulted or 
will result in an increase in property value of at least one hundred percent.

B. The prime lessee 
shall notify the county treasurer and the government lessor and apply for the 
abatement before the taxes under this article are due and payable in the first 
year after the certificate of occupancy is issued. 

C. Except as provided by subsection D of this 
section, each lease between a prime lessee and a government lessor for which 
the tax is abated under this section that is entered into from and after May 
31, 2010, and that does not meet the conditions 
provided in section 42-6203, subsection A must be approved by a simple 
majority vote of the governing body without using a consent calendar and shall 
not be approved unless:

1. The government lessor notifies the governing 
bodies of the county and any city, town and school district in which the 
government property improvement is located at least sixty days before the 
approval.� The notice must include the name and address of the intended prime 
lessee, the location and proposed use of the government property improvement 
and the proposed term of the lease or development agreement.

2. The government lessor determines that, within the 
term of the lease or development agreement, the economic and fiscal benefit to 
this state and the county, city or town in which the government property 
improvement is located will exceed the benefits received by the prime lessee as 
a result of the development agreement or lease on the basis of an estimate of 
those benefits prepared by an independent third party in a manner and method 
acceptable to the governing body of the government lessor.� The estimate must 
be provided to the government lessor and the governing bodies of the county and 
any city, town and school district in which the government property improvement 
is located at least thirty days before the vote of the governing 
body. A lease or development agreement between a prime lessee and a 
government lessor involving residential rental housing is exempt from the 
economic estimate analysis requirements of this paragraph.

3. The l