ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
flight property tax revenue
distribution
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.
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, as amended by the
Transportation Committee, deposits two-thirds of the FPT revenue for FY
2001-2002 and 100 percent of the FPT revenue for FY 2002-2003 in the aviation
fund. According to the Joint Legislative
Budget Committee (JLBC), this measure reduces annual state general fund
revenues by an estimated $2.3 million in FY 2001-2002 and $6.8 million in FY
2002-2003. This legislation, as amended
by the Appropriations Committee, 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 JLBC, 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.
1. Redirects two-thirds of FPT revenues from the state general fund to the aviation fund in FY 2001-2002 and 100 percent of FPT revenues from the state general fund to the aviation fund in FY 2002-2003. As amended by the Transportation Committee, 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, as amended by the Appropriations Committee.
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.
Senate Action
TRANS 1/23/01 DPA 8-0-0-0
APPROP 2/27/01 DPA 11-0-1-0
Prepared by Senate Staff
February 27, 2001