Assigned to TRANS & APPROP                                                                                                           AS ENACTED

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1251

 

flight property tax revenue distribution

(NOW:  flight property tax revenues)

 

Purpose

 

Redirects 100 percent of the flight property tax in FY 2003-2004 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 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 (ADOT), is charged with providing a grant 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.

 

The State Transportation Board (STB) is responsible for distribution of monies appropriated to ADOT from the state aviation fund for planning, design, development, acquisition of interests in land, construction and improvement airport facilities.  As a matter of policy, the STB limits the distribution of monies from the aviation fund to ten percent to any one airport.  S.B. 1251 codifies this practice in statute. 

 

S.B. 1251 repeals the 1997 enactment, depositing 100 percent of the FPT revenue effective FY 2003-2004 in the aviation fund.  According to the Joint Legislative Budget Committee, this measure reduces annual state general fund revenues by an estimated $6.9 million in FY 2003-2004.

 

Provisions

 

1.      Redirects 100 percent of the FPT from the state general fund to the aviation fund in FY 2003-2004.

 

2.      Limits the amount of the aviation fund that the STB can award any one airport to ten percent in any fiscal year.

3.      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 amendment was withdrawn.

 

Amendments Adopted by the House of Representatives

 

            Redirects 100 percent of FPT revenues from the state general fund to the aviation fund in FY 2003-2004.

 

Senate Action                                                             House Action                                                    

 

TRANS           2/1/01              DPA    8-0-0-0                        MVAA            3/29/01    DPA/SE    10-0-0-0

APPROP         2/27/01            DPA    11-0-1-0          APPROP         4/18/01    DPA/SE    14-1-0-1

3rd Read           3/14/01                        27-2-1-0          3rd Read           4/24/01                      55-0-5-0

Final Read        4/26/01                        29-0-1-0

 

Signed by Governor 5/1/01

Chapter 286

 

 

Prepared by Senate Staff

May 18, 2001