Ariz. Rev. Stat. § 48-3781 – Annual replenishment tax; contract replenishment tax

A. On or before the third Monday of August of each year after the qualification of the member service area of any municipal provider, the district shall levy a replenishment tax against each municipal provider having a qualified member service area for the privilege of withdrawing and delivering excess groundwater within the member service area. The replenishment tax shall be calculated by the district in accordance with this article and shall be sufficient to produce the amount of money estimated as needed to pay the costs and expenses to replenish groundwater established under section 48-3772, subsection A, and taking into account any annual replenishment assessment levied under section 48-3778 and any member service area agreements entered pursuant to section 48-3771, subsections H and I.
B. The district shall promptly transmit a statement to each municipal provider having a member service area stating the amount of the annual replenishment tax and any replenishment reserve fee due under section 48-3780.01.
C. On or before the third Monday of August of each year after the district enters into any contract to replenish water pursuant to section 48-3772, subsection B, paragraph 9, the district shall levy a tax against each municipal provider that is a party to a contract to replenish groundwater at the assessment rate provided in the applicable contract. The district shall promptly transmit a statement to each municipal provider that is a party to a contract to replenish groundwater stating the amount of the replenishment tax due under the contract.
D. On or before October 15 of each year, each municipal provider that has a member service area shall pay to the district an amount equal to the annual replenishment tax levied by the district and any replenishment reserve fee due under section 48-3780.01.
E. On or before October 15 of each year, each municipal provider that is a party to a contract to replenish groundwater under section 48-3772, subsection B, paragraph 9 shall pay to the district the contract replenishment tax levied by the district pursuant to the contract.
F. Annual replenishment taxes and contract replenishment taxes collected by the district shall be deposited, pursuant to sections 35-146 and 35-147, in the special fund established pursuant to section 48-3773, subsection A, paragraph 3 and shall be expended by the district only for the purposes authorized by this article.
G. If a municipal provider is delinquent for more than ninety days in the payment of its replenishment tax, the district shall promptly notify the director of water resources of the delinquency. Except as provided in subsection H of this section, for any municipal provider that is delinquent for more than ninety days in the payment of its replenishment tax, the district shall complete the replenishment of the service area replenishment obligation. The district shall complete that obligation within three full calendar years after the year that the district is paid an amount equal to the delinquent replenishment tax, plus interest calculated in accordance with section 48-3782, subsection A, or within ten full calendar years after the year that the district incurs the service area replenishment obligation, whichever is sooner.
H. The district is not required to complete the replenishment of the service area obligation of a municipal provider that is delinquent for more than ninety days in the payment of its replenishment tax if both of the following apply:
1. 1. The district is not paid an amount equal to the delinquent replenishment tax, plus interest calculated in accordance with section 48-3782, subsection A, within ten full calendar years after the year that the district incurs the service area replenishment obligation.
2. 2. The municipal provider or its successor has violated section 45-492, subsection D or section 45-493, subsection D and the director of water resources has not commenced an enforcement action against the municipal provider or its successor for the violation within ten full calendar years after the year that the district incurs the service area replenishment obligation.