county excise taxes; levy
authority
HB 2089 proposes to make technical corrections to the classification of
failures to remit withholdings. HB 2089 has a proposed strike-everything
amendment that would allow counties of less than 500 thousand population to
levy a two-year general excise tax with a 4/5 vote of the board of
supervisors.
Current Status
HB 2089 failed to pass the Ways
and Means Committee.
The authority of counties with a population of less than 1.5 million to levy a general excise tax of up to ten percent of the state transaction privilege rate on applicable businesses for the privilege of conducting business within the county was added to laws in 1990. Current statute requires these counties to have unanimous board approval for the levy of the tax. Only Maricopa and Pima counties do not have a general county excise tax, but Maricopa County is not permitted to levy this tax due to population constraints. Most counties levy up to the maximum ½-cent. However, Mojave County currently only levies a ¼-cent general excise tax. The strike-everything amendment would allow counties with less that 500 thousand to levy a two-year general excise tax with a 4/5 vote, instead of a unanimous vote.