Arizona Revised Statutes Title 42. Taxation § 42-5041. Assessment of fees; integrated tax system modernization project; fund

A. From and after June 30, 2022 through June 30, 2028, the department shall assess and collect fees from counties, cities, towns, councils of governments and regional transportation authorities as determined by the director and as provided by this section to implement an integrated tax system modernization project at the department.

B. From and after June 30, 2022 through June 30, 2028, a fee is assessed to each county, city and town that receives state shared revenues pursuant to § 42-5029 or 43-206, to each council of governments that receives revenues pursuant to § 42-6105 and to each regional transportation authority located in a county with a population of more than eight hundred thousand persons that receives revenues pursuant to § 42-6106.

C. The department shall assess the fees under subsection A and B of this section not later than October 31 each year, and the fees are payable immediately on assessment. If a county, city, town, council of governments or regional transportation authority fails to pay the fees in full on or before December 31, the department shall notify the state treasurer who shall withhold the delinquent amount from the distribution of monies to the affected county, city or town pursuant to §§ 42-5029 and 43-206, from the distribution of monies to the affected council of governments pursuant to § 42-6105 and from the distribution of monies to the affected regional transportation authority pursuant to § 42-6106, and who shall continue to withhold monies until the entire amount of the assessment has been satisfied.

D. Counties, cities and towns may meet their cost sharing obligation from any source of county, city or town revenue designated by the appropriate county, city or town. The county sources may include monies of any countywide special taxing jurisdiction in which the board of supervisors serves as the board of directors.

E. From and after June 30, 2022 through June 30, 2028, pursuant to § 42-5029.02, the department shall transfer an amount from monies collected pursuant to § 42-5010.01 and § 42-5155, subsection E as determined by the director to implement the integrated tax system modernization project at the department. The amount transferred pursuant to this subsection shall be the actual reasonable costs incurred by the department for integrated tax system modernization upgrades related to the taxes authorized and levied pursuant to § 42-5010.01 and § 42-5155, subsection E.

F. From and after June 30, 2022 through June 30, 2028, pursuant to § 36-2856, subsection B, paragraph 2, the state treasurer shall transfer an amount from monies collected pursuant to § 42-5452 as determined by the director to implement the integrated tax system modernization project at the department. The amount transferred pursuant to this subsection shall be the actual reasonable costs incurred by the department for integrated tax system modernization upgrades related to the tax authorized and levied by § 42-5452.

G. All monies paid to the department or withheld by the state treasurer for the fees assessed pursuant to subsection B of this section or transferred pursuant to subsections E and F of this section shall be credited to the department of revenue integrated tax system project fund established by subsection H of this section.

H. The department of revenue integrated tax system project fund is established consisting of monies deposited or transferred to the fund pursuant to this section. The director shall administer the fund. Monies in the fund are subject to legislative appropriation. The director shall use monies in the fund solely for the administrative, development and other operating costs incurred in implementing the integrated tax system modernization project at the department.