Assigned to FIN                                                                                                                 FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

CORRECTED

FACT SHEET FOR S.B. 1227

 

county sales taxes for roads

 

Purpose

 

Allows counties, upon approval of the voters, to extend the county transportation excise tax for roads.

 

Background

 

In October 1985, the voters of Maricopa County approved a one-half cent transportation excise tax for 20 years ending December 2005.  The transportation excise tax revenues are deposited in the regional area road fund (RARF), which is administered by the Arizona Department of Transportation.  The revenues deposited into the RARF account are the principal source of funding for the Regional Freeway System in Maricopa County and are dedicated by statute to the purchase of right-of-way, design and construction of controlled access highways.  The Maricopa County transportation excise tax generated $248.6 million in FY 1999-2000.

 

Pima County is authorized under statute to impose, upon approval of the voters in a countywide election, a county transportation excise tax of no more than one-half cent.  Pima County voters rejected the proposed tax in a 1986 referendum and again in 1990.

 

Laws 1999, Chapter 189 removed the ability of Maricopa County to continue the Maricopa County transportation excise tax beyond its present duration.  S.B. 1227 restores Maricopa County’s authority to extend the county transportation excise tax upon approval of the voters and extends Pima County’s authority to propose a transportation excise tax to the voters.   According to the Maricopa Association of Governments, the one-half cent excise tax in Maricopa will raise an estimated $375 million in FY 2005-2006.

 

Provisions

 

1.      Allows the voters of a county with a population of 1.2 million or more persons to vote to impose an extension of the terms of the county transportation excise tax for roads.

 

2.      Requires the county with a population of 1.2 million or more persons and municipalities in that county, through the regional planning agency to adopt a definite or indefinite term of extension for the county’s regional transportation plan and requires the term to be stated on the ballot.

 

3.      Allows the voters of a county with a population of more than 400,000 but less than 1.2 million persons to vote to impose an extension of the county transportation excise tax for roads for no more than ten years.

4.      Requires the regional transportation authority of a county with a population of more than 400,000 but less than 1.2 million persons, by resolution, to request the county board of supervisors to place the transportation excise tax on a special election or general election ballot.

 

5.      Requires the county board of supervisors of each county to prepare and distribute a publicity pamphlet to each household with a registered voter explaining the provisions of the transportation excise tax.

 

6.      Specifies requirements for payment of election costs.

 

7.      Extends the authority of the board of supervisors in a county with a population of 400,000 or less persons to approve a tax on the use or consumption of electricity or natural gas by 2008.

 

8.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 26, 2001