ARIZONA STATE SENATE
Phoenix, Arizona
flight property tax revenue
distribution
Redirects two-thirds of the
flight property tax revenues in FY 2001-2002 and three-fourths of the flight
property tax revenues in FY 2002-2003 from the state general fund to the
aviation fund.
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 state 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 were deposited in the aviation fund.
The state aviation fund, administered by the Arizona Department of
Transportation, is charged with providing a grand source for eligible airports
for the planning, development and construction of the aviation system in
Arizona.
Laws 1997, First Special
Session, Chapter 3, directed 50 percent of FPT collections to the state general
fund instead of the aviation fund.
S.B. 1251 amends the 1997
enactment, depositing two-thirds of the FPT revenue for FY 2001-2002 and
three-fourths of the FPT revenue for FY 2002-2003 in the aviation fund. According to the Joint Legislative Budget
Committee, this measure reduces annual state general fund revenues by an
estimated $2.3 million in FY 2001-2002 and $3.5 million in FY 2002-2003.
1. Redirects two-thirds of FPT revenues from the state general fund to the aviation fund in FY 2001-2002 and three-fourths of FPT revenues from the state general fund to the aviation fund in FY 2002-2003.
2. Contains a legislative intent.
3. Provides for a general effective date.
Prepared by Senate Staff
January 29, 2001