Assigned to TRANSIT AS
PASSED BY COMMITTEE
Assigned to TRANSIT AS
PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
county excise tax for transportation.
Purpose
Allows the electors of a county to approve an additional county transportation plan and excise tax on submission of a ballot measure by the county Board of Supervisors (BOS). Allows the BOS in certain counties, upon written request of the regional planning agency or regional transportation authority, to call and conduct an election to approve a renewal and extension of a transportation excise tax for a new transportation plan.
Background
Statute authorizes counties to hold a countywide election to approve the levying and collection of a county transportation excise tax. The county transportation excise tax is distributed based on the size of the county and the type of transportation authority organized.
The county transportation tax rate is limited to not more than 10 percent of the Transaction Privilege Tax rate levied in the county and not more than 10 percent of the statutory jet fuel tax rate (A.R.S. §§ 42-6105; 42-6106; and 42-6107).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Additional Transportation Excise Tax and Plan
1. Allows a county BOS to submit an additional transportation plan and accompanying excise tax to the county voters for approval.
2. Specifies that the additional transportation plan and excise tax are one issue on the ballot.
3. Stipulates that the additional county transportation excise tax begins the January 1 or July 1 following the vote, whichever is sooner.
4. Specifies that the tax base for an additional transportation excise tax applies to the same tax base as the existing county transportation excise tax.
5. Limits the total county transportation excise tax, including existing and primary taxes, to one percent of the gross proceeds of sales or gross income from a taxed business.
6. Allows the BOS to propose an automatic increase of the additional excise tax to reach the one percent limit if other county transportation excise tax rates expire or are reduced during the life of the approved supplemental county transportation excise tax.
7. Requires the BOS to include whether the additional county transportation excise tax terminates or is perpetual on the ballot measure for approval by the electors.
8. Requires revenues collected under an approved additional country transportation excise tax to be deposited into a dedicated fund for the payment of costs and obligations under the accompanying supplemental county transportation plan.
9. Requires the additional county transportation plan submitted to the electors to:
a) be developed in collaboration with specified authorities; and
b) specify the allocation of revenues collected under the plan.
10. Allows the additional county transportation plan submitted to the electors to include:
a) multimodal transportation systems and improvements; and
b) coordination with neighboring counties.
11. Restricts collected revenues to transportation purposes outlined in the Arizona Constitution and specifies monies are exempt from county expenditure limitations.
Transportation Plan and Excise Tax Renewal
12. Allows the county BOS, at the written request of the regional planning agency in a county of greater than 1,200,000 persons or the regional transportation authority in a county with a population between 400,000 and 1,200,000 persons, to call and conduct an election to approve a renewal and extension of a transportation excise tax for a new transportation plan
13. Requires that the ballot measure submitted to the voters be the approval or disapproval of the renewal or extension of the transportation excise tax on a specified election day.
14. Specifies that the renewed or extended transportation excise tax begins:
a) for a county of greater than 1,200,000 persons, January 1, 2026, continuing for 20 years; and
b) for a county with a population between 400,000 and 1,200,000 persons, beginning the April 1 after the election and continuing between 10 and 20 years.
15. Stipulates that the tax rate is:
a) for a county of greater than 1,200,000 persons, the current statutory rate for an existing county transportation excise tax; and
b) for a county with a population between 400,000 and 1,200,000 persons, not more than 20 percent of the 1990 transaction privilege tax rate or the jet fuel tax rate.
16. Directs revenues collected from the renewal of a transportation excise tax in a county of greater than 1,200,000 persons to:
a) the Regional Area Road Fund to use for capital expense and maintenance of the state highway system, and capital expense and implementation studies of major arterial street and intersection improvements; and
b) the Public Transportation Fund for capital costs, maintenance and operation of public transportation systems included in the transportation plan.
17. Directs revenues collected from the renewal of a transportation excise tax in a county with a population between 400,000 and 1,200,000 persons to the Regional Transportation Fund to carry out the regional transportation plan.
Miscellaneous
18. Specifies that this legislation does not constitute a submission for referendum approval.
19. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Excludes a renewal or extension of an existing transportation excise tax from the process established to adopt an additional transportation excise tax.
2. Allows the BOS in a county with a population greater than 400,000 persons to conduct a countywide election to approve an extension to an existing county transportation excise tax and the accompanying transportation plan.
3. Outlines requirements for submission of a county transportation excise tax extension measure to the ballot for approval by the voters.
4. Directs monies collected from the extension of a county transportation excise tax to the existing Regional Area Road Fund and Public Transportation Fund in a county with 1,200,000 persons or greater and to the Regional Transportation Fund in a county with a population between 400,000 and 1,200,000 persons.
5. Makes conforming changes.
Senate Action
TRANSIT 1/30/18 DPA 7-0-0
Prepared by Senate Research
January 30, 2018
KN/lb