ARIZONA STATE SENATE
Phoenix, Arizona
flight property tax; deposit
Redirects 50 percent of
flight property tax revenues from the general fund to the aviation fund. This restores the deposit of 100 percent of
flight property tax revenues to the aviation fund.
Background
Flight property tax (FPT) is
a tax on airline property, which is considered class 7 for property 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 general fund, in following years a growing
percentage of FPT collections were diverted to the aviation fund. Beginning in 1989, all FPT revenues were
deposited in the aviation fund. The
state aviation fund, administered by the Arizona Department of Transportation,
is charged with providing for a grant source for eligible airports for the
planning, development and construction of the aviation system in Arizona.
Pursuant to Laws 1997, First
Special Session, Chapter 3, 50 percent of FPT collections were directed to the
state general fund instead of the aviation fund.
S.B. 1324 repeals the 1997
enactment, consequently depositing all FPT revenue in the aviation fund. According to the Joint Legislative Budget
Committee, this measure reduces annual state general fund revenues by an
estimated $7.2 million beginning FY 2000-2001.
There is a corresponding revenue increase projected for the aviation
fund.
Provisions
1. Restores the 100 percent deposit of flight property tax collections to the aviation fund by eliminating the requirement to deposit 50 percent of these monies to the state general fund.
2. Provides for a general effective date.
Prepared by Senate Staff
January 24, 2000