House of Representatives

HB 2461

flight property tax; deposit

Sponsors: Marsh, Griffin, McGibbon, Hart et al

 

DPA

Committee on Appropriations

DPA

Caucus and COW

 

X

As Passed the House

 

HB 2461 amends a 1997 session law provision which deposited 50% of all flight property tax revenues into the state general fund and 50% into the state aviation fund.  Under the provisions of this bill, 66.67% of flight property tax revenues would be deposited into the state aviation fund while 33.33% will be deposited into the general fund.

 

History

Flight property tax (FPT) is a tax on airline property, which is considered a class 7 property for taxation purposes.  According to statute, the FPT rate is the current year average of tax rates assessed against all other taxable property in this state.  Other taxes are prohibited upon the flight property of airline companies operating in Arizona.  While originally all FPT collections were deposited in the state general fund, in following years, a growing percentage of FPT collections began to be deposited in the state aviation fund.  Beginning in 1989, all FPT revenue was deposited in the aviation fund pursuant to ARS § 42-705.  The state aviation fund, administered by the Arizona Department of Transportation (ADOT), is charged with providing for a state-owned airport and a grant source for eligible airports for the planning, development and construction of the aviation system in Arizona.  FPT collections provide the majority of revenue for the fund, though a number of sources deposit revenue into the aviation fund.

 

In 1997, the Legislature diverted 50 percent of FPT collections from the aviation fund to the general fund (Laws 1997, First Special Session, Chapter 3, Section 5, otherwise known as the 1997 Public Finances ORB).  On January 1, 1999, ARS § 42-705 was repealed as a result of a recodification of Title 42.  This section was replaced with ARS § 42-14255, which again provides for 100% of FPT revenue to be deposited in the aviation fund.  However, Laws 1999, 1st Special Session, Chapter 3, section 9 (the 1999 Public Finances ORB) conformed the 1997 session law with the recodified Title 42, thereby maintaining the current 50% general fund and 50% aviation fund revenue distribution.

 

Provisions

·                      Amends Laws 1997, 1st Special Session, Chapter 3, Section 5 (the 1997 Public Finances ORB) as amended by Laws 1999, 1st Special Session, Chapter 3, Section 9 (the 1999 Public Finances ORB), to increase the percentage of flight property tax revenues deposited into the state aviation fund from 50% to 66.67%, and decreases the percentage of flight property tax revenues deposited into the general fund from 50% down to 33.33%.

 

HB 2461 was amended in the Appropriations Committee as follows:

·                      Amends the revenue distribution so that 66.67% flows to the aviation fund and 33.33% flows to the state general fund. (Under the provisions of the original bill, all flight property tax revenues would have been deposited into the state aviation fund.)

 

The Appropriations Committee amendment was adopted in Committee of the Whole.

 

 

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44th Legislature                                                                                         Analyst Initials _______

Second Regular Session                                                                                            March 6, 2000

 

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