ARIZONA STATE SENATE
Phoenix, Arizona
emergency telecommunications
services; excise tax
A Proposition 108 measure
that sets the tax rate at 37½ cents per month for wire and wireless service
accounts to finance emergency telecommunications services.
The Maricopa County 911
system has been operational since 1985. According to the Maricopa Association
of Governments (MAG), despite significant population and technological growth
during in this period, little has changed with the 911 system. The system is
financed by a revolving fund with monies derived from a one and one-quarter
percent surcharge levied on each landline telephone and each activated wireless
service. Currently, this excise tax generates approximately sixteen cents for
each residential account, forty cents for each business account and ten cents
for each activated wireless phone per month. MAG expects that the demand on the
911-system fund will soon exceed the yearly revenues. S.B. 1504 consolidates
the taxes for wire and wireless service accounts and sets a rate of 37½ cents
per month for each service account.
Provisions
1. Sets the tax rate at 37½ cents per month and consolidates the taxes for wire and wireless service accounts for the purpose of financing emergency telecommunications services.
2. Changes the rate and method of taxation used to gather monies for the telecommunication fund for the deaf.
3. Institutes a two-year method for determining the necessary rate of the telecommunications excise tax.
4. Requires the legislature to review the recommendations of the Director of the Department of Administration regarding the amount of the telecommunications excise tax and take legislative action regarding those recommendations.
5. Specifies that for fiscal years beginning July 1, 2001, the department may use up to 1.75 percent of the emergency telecommunications revolving fund for administrative costs.
6. Specifies that the remainder of the monies deposited in the fund may be used for local network management of contracts with public safety answering points.
7. Makes conforming changes.
8. Contains a Proposition 108 clause.
Amendments
Adopted by Committee
1. Specifies that for fiscal years beginning July 1, 2001, the department may use up to 1.75 percent of the emergency telecommunications revolving fund for administrative costs.
2. Specifies that the remainder of the monies deposited in the fund may be used for local network management of contracts with public safety answering points.
3. Restores the percentage currently in effect that can be used for administrative costs from the emergency telecommunications revolving fund.
Senate Action
FIN 3/5/01 DPA 7-1-0-0
Prepared by Senate Staff
March 7, 2001