Assigned to TRANS & APPROP                                                                AS PASSED BY THE SENATE                                                                                                                                                                   

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR S.B. 1251

 

flight property tax revenue distribution

 

Purpose

 

Redirects a portion of the flight property tax revenues in FY 2001-2002 and FY 2002-2003 from the state general fund 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 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.

 

This legislation deposits 58 percent of the FPT revenues for FY 2001-2002 and 63 percent of the FPT revenues for FY 2002-2003 in the aviation fund.  According to Joint Legislative Budget Committee staff, this measure reduces annual state general fund revenues by an estimated $1.2 million in FY 2001-2002 and $1.8 million in FY 2002-2003.

 

Provisions

 

1.      Redirects 58 percent of FPT revenues from the state general fund to the aviation fund in FY 2001-2002 and 63 percent of FPT revenues from the state general fund to the aviation fund in FY 2002-2003.

 

2.      Provides for a general effective date.

 

Amendments Adopted by Transportation Committee

 

1.      Deposits 100 percent of FPT revenues into the aviation fund in FY 2002-2003.

 

2.      Removes the legislative intent.

 

Amendments Adopted by Appropriations Committee

 

1.      Redirects 58 percent of FPT revenues from the state general fund to the aviation fund in FY 2001-2002 and 63 percent of FPT revenues from the state general fund to the aviation fund in FY 2002-2003.

 

2.      Removes the legislative intent.

 

Amendments Adopted by Committee of the Whole

 

The Transportation Committee amendment was withdrawn.

 

Senate Action

 

TRANS           1/23/01            DPA    8-0-0-0

APPROP         2/27/01            DPA    11-0-1-0

3rd Read           3/14/01                        27-2-1-0

 

 

Prepared by Senate Staff

March 15, 2001