BILL #    SB 1144	TITLE: jail facilities excise tax; extension
SPONSOR:    Payne	STATUS: Senate Engrossed
PREPARED BY:    Benjamin Newcomb

Description

The bill authorizes Maricopa County to levy jail facilities tax of no more than 4% of the state Transaction Privilege Tax (which equates to 0.2% tax) for up to 20 years if approved by the voters. Maricopa County is currently levying a 0.2% jail facilities tax, which is scheduled to expire in March 2027. 

Estimated Impact

The bill would have no state fiscal impact.

If the existing 0.2% jail tax is allowed to expire in 2027, Maricopa County revenues are projected to decline by $(323.9) million in FY 2028.  If voters approve an extension at the 0.2% rate, Maricopa County would retain the $323.9 million in FY 2028.

Analysis

According to the Department of Revenue's (DOR) most recent Annual Report, the Maricopa County jail excise tax generated $279 million in revenues in FY 2024.  Based on the January 2025 JLBC Baseline projected percent growth in TPT collections, the 0.2% jail tax would generate $324 million in FY 2028.

3/5/25