ARIZONA HOUSE OF REPRESENTATIVES

SB 1147: county excise tax for transportation.

PRIME SPONSOR: Senator Worsley, LD 25

BILL STATUS: Transportation & Infrastructure

Abstract

Relating to a county excise tax for transportation.

Provisions

Counties with less than 400,000 (Sec. 1)

1. Allows a BOS, on a majority vote, to submit a transportation plan funded by a supplemental excise tax to the voters of the county for approval. 

2. Requires the BOS to present the transportation plan and the excise tax on the ballot as a single question.

3. Instructs the county to levy and DOR to collect the new excise tax, upon voter approval.

4. Requires the excise tax to begin January 1 or July 1, whichever occurs first after voter approval.

5. Requires the new excise tax to be levied on the same tax base that applies to an excise tax in that county.

6. Restricts the total county transportation excise tax to 1% of the gross proceeds of sales or gross income from each business subject to the tax.

7. Requires the BOS, on the initial submission of the proposal, to set a termination date for the tax within 20 years.

8. Instructs the county to deposit monies collected from the tax into a special county transportation fund to be used for the cost of implementing the approved transportation plan.

9. Requires the transportation plan:

a. Be developed in collaboration with existing state, regional and local transportation authorities and planning agencies; and

b. Specify where the collected monies will be allocated.

10. Allows the transportation plan to include:

a. Multimodal transportation systems and improvements; and

b. Coordination with authorities and agencies in neighboring counties.

Regional Planning Agency (Sec. 1)

11. Allows the BOS, at the written request of the county's regional planning agency, conduct a countywide election to approve the renewal and extension of the county's excise tax.

12. Requires the issue on the ballot be presented as a single question and put on the next regularly scheduled countywide election.

13. Requires the renewed tax be levied at the current rate for a 20-year term, starting on January 1, 2026.

14. Allocates the revenues collected to fund the regional transportation plan and to be deposited into the Regional Area Road Fund and the Public Transportation Fund.

15. Stipulates the monies deposited into the Regional Area Road Fund be used for freeways, major arterial street and intersection improvements including capital expenses, maintenance and implementation studies.

Regional Transportation Authority (Sec. 1)

16. Allows the BOS, at the written request of a regional transportation authority, to conduct a countywide election to approve an extension of the county's current excise tax.

17. Requires the election be held within six months of receiving the request and be presented on the ballot as a single question.

18. Limits the tax rate to 20% of the 1990 state TPT rate for businesses, 20% of the jet fuel tax rate or the utilities TPT rate for the use or consumption of retail electricity or natural gas.

19. Stipulates the regional transportation authority must determine the term of the tax beginning on January 1 or July 1, whichever occurs first at least 60 days after the election, and ending between 10 to 20 years.

20. Permits any preexisting excise tax, regardless of election results, stay in effect unless amended by the ballot initiative.

21. Requires the revenues collected be deposited in the Regional Transportation Fund for the purposes of the regional transportation plan, including capital expense and maintenance costs.

Miscellaneous (Sec. 1)

22. Exempts monies collected from the tax that are spent on transportation from the county's expenditure limitation.

23. Stipulates this section of statute does not constitute a submission of any provision of law to the people for approval under the power of the referendum.

Current Law

A county my hold a countywide election to approve the levying and collection of a county transportation excise tax.  The taxes collected are distributed based on the population of the county and the transportation authority organized in each county.  The county transportation excise tax rate is limited to 10% of the state TPT rate (A.R.S. §§ 42-6105, 42-6106, 42-6107). A regional public transportation authority is established in statute for a county that has a population of 1.2 million persons or more and that approves a transportation excise tax (A.R.S. § 48-5102).

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  SB 1147

Second Regular Session                               Version 1: Transportation & Infrastructure

---------- DOCUMENT FOOTER ---------