ARIZONA STATE SENATE
Phoenix, Arizona
flight property tax; deposit
Redirects 16 2/3 percent of
flight property tax revenues from the general fund to the aviation fund. This deposits two-thirds of flight property
tax revenues to the aviation fund and
one-third of the revenues into the state general 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 began to be deposited in the aviation fund. Beginning in 1989, all FPT revenues was
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.
H.B. 2461 amends the 1997
enactment, depositing 2/3 of the FPT revenue in the aviation fund. According to the Joint Legislative Budget
Committee, this measure reduces annual state general fund revenues by an
estimated $2.4 million beginning FY 2000-2001.
There is a corresponding revenue increase projected for the aviation
fund.
Provisions
1. Redirects 16 2/3 percent of flight property tax revenues from the state general fund to the aviation fund.
2. Provides for a general effective date.
APPROP 2/25/00 DPA 10-0-0-3
3rd Read 3/1/00 54-3-3-0
Prepared by Senate Staff
March 3, 2000