45-556. Transportation fee; annual adjustment; credits; enforcement

A. Except as provided in subsection B of this section, a person who directly or indirectly transports groundwater, withdrawn in a groundwater basin or sub-basin as provided by this article or in the Pinal active management area, away from the county in which it was withdrawn to an initial active management area shall pay annually to the county a groundwater transportation fee determined by the director for each acre-foot of groundwater transported directly or indirectly away from the county, less any amount of central Arizona project water actually used on the property from which the groundwater is transported.

B. A person is not required to pay a transportation fee under this section for stored water withdrawn pursuant to recovery well permits issued by the director pursuant to this title.

C. Except as provided in subsection D of this section the director shall set the fee as follows for the cumulative amount of groundwater transported away from the county, less any amount of central Arizona project water actually used on the property from which the groundwater is transported:

D. The director shall annually adjust the dollar amount of the fee according to the annual changes in the GDP price deflator, as defined in section 41-563, using the 1993 calendar year as the base year. The director shall immediately notify all concerned parties of the fee adjustments under this subsection.

E. Credits are allowed against the fees imposed by this section as described and in the amounts provided under this subsection. If the amount of the credit exceeds the amount of the fee imposed for any year, the unused portion of the credit may be carried forward and applied to subsequent years' fees until the amount of the credit is exhausted. The allowable credits are as follows:

1. The amount of any increase in property tax revenues, including contributions in lieu of property taxes under title 9, chapter 4, article 3, derived from remote municipal property, as defined in section 42-15251, from which the groundwater is withdrawn. The credit shall account for increased revenues due to improvements to the property and increased revenues due to higher property tax valuations and assessment ratios resulting from changes in use of the property. The credit shall not account for increased revenues due to normal market or economic factors. The amount of the credit for any year is the sum of the amounts computed under subdivisions (a) and (b) as follows:

(a) Delete from consideration under this subdivision any property with respect to which an amount is computed under subdivision (b). Subtract the amount of property tax or in lieu revenues that would have been derived from the remaining property during the immediately preceding tax year if the use of and improvements to the property had remained unchanged since the date the city or town acquired the property from the amount of property tax or in lieu revenues actually derived from that property during the immediately preceding tax year. If a city or town conveys all or part of its interest in remote municipal property to another political subdivision, the political subdivision succeeds to the credit allowed under this section. The amount of credit computed under this subdivision shall be computed each year, beginning in the year groundwater is first transported, and, if not used to offset the fee under this section, shall be cumulated from year to year.

(b) This subdivision applies with respect to any portion of the remote municipal property that, before January 1, 1992, was classified at that time as class four property for purposes of property taxation under title 42 but was developed or improved at any time after December 31, 1991 and is not currently classified as class two property. Subtract the amount of property tax or in lieu revenues that would have been derived from that developed or improved portion of the remote municipal property during the immediately preceding tax year if the use of and improvements to the property had remained unchanged since the date the city or town acquired the property from the amount of property tax or in lieu revenues actually derived from that portion of the property during the immediately preceding tax year. If a city or town conveys all or part of its interest in remote municipal property to another political subdivision, the political subdivision succeeds to the credit allowed under this section. The amount of credit computed under this subdivision shall be computed each year, beginning in the year that the property is developed or improved and reclassified for tax purposes, and, if not used to offset the fee under this section, shall be cumulated from year to year.

2. An amount equal to the market value of land donated to the county if the county agrees in writing to prohibit or limit the withdrawal of groundwater from the land. The amount of the credit shall account for the reduced value of the land due to the groundwater withdrawal limitations.

3. An amount agreed to by intergovernmental agreement between the county in which the groundwater is withdrawn and the city, town or other person transporting the groundwater.

F. The board of supervisors of a county to which fees are due and payable under this section may request the county attorney to commence and prosecute any action or proceeding to enforce the collection of the fees.