Assigned to TRANS & FIN                                                                                       FOR CAUCUS & FLOOR ACTION

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2461

 

flight property tax; deposit

 

Purpose

 

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 in FY 2000-2001.  Restores the deposit of 100 percent of flight property tax revenues to the aviation fund in FY 2001-2002.

 

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 (JLBC), 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.

 

            This legislation repeals the 1997 enactment in FY 2001-2002, consequently depositing all FPT revenue in the aviation fund.  JLBC estimates an annual reduction of the state general fund revenues by $7.2 million and a corresponding revenue increase projected for the aviation fund beginning in FY 2001-2002.

 

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.

 

Amendments Adopted by Transportation Committee

 

1.      Deposits 100 percent of the FPT revenues in the aviation fund on July 1, 2001.

 

House Action                                                               Senate Action                                                                                      

 

APPROP         2/25/00            DPA    10-0-0-3          TRANS           3/9/00              DPA    6-0-1-0

3rd Read           3/1/00                          54-3-3-0          FIN                 3/9/00              DP       6-0-1-0

 

 

Prepared by Senate Staff

March 9, 2000