House of Representatives

HB 2313

jail facilities excise tax; extension

Sponsors: Representatives Blendu, Weiers: Farnsworth, Flake, et al.

DPA	Committee on Counties & Municipalities
DPA	Caucus and COW
x	Third Read
	As Passed the House

HB 2313 permits a county board of supervisors of any county that currently levies a Jail Facilities Excise Tax (JFET), upon resolution and voter approval, to extend the JFET for a period not to exceed twenty years.

Current Status

HB 2313 was amended in the Counties & Municipalities Committee to allow the county to use tax revenues to renovate existing adult and juvenile jail facilities and further amended in the Committee of the Whole to remove provisions in the bill pertaining to the collection of a use tax on the use or consumption of electricity or natural gas by retail electric or natural gas customers in the county. The floor amendment also removed the option for the county to increase the rates of the tax during the term of the tax.

History

Laws 1998, Chapter 225, allowed a county with 1,500,000 persons (Maricopa), upon voter approval at a countywide general election, to levy a transaction privilege tax of not more than one-fifth of one percent for authorized jail facilities expenditures. The authorized jail facility expenditures included the finance and construction of new and adult jail facilities, the operation and maintenance of adult and juvenile jail facilities and funding for various items for the purpose of reducing the expense of adult and juvenile facilities. The legislation stipulated that the JFET could be levied for nine years or until $900 million was collected, whichever is earlier. Additionally, the legislation required the county to adhere to maintenance of effort requirements with the base expenditure amount being adjusted each year based on the change in the secondary net assessed value of the property in the county.

Maricopa County voters approved a JFET in 1998, that tax is set to expire in 2007.

Provisions

· Allows a county board of supervisors of any county that currently levies a JFET, upon resolution and voter approval, to extend the JFET for a period of not more than 20 years.

· Authorizes the board of supervisors to extend, by resolution, the use tax on the use or consumption of electricity or natural gas by retail electric or natural gas customers in the county upon expiration of a tax, if any, already in place.

· Stipulates the tax rate shall not be more than one-fifth of one percent and allows the board of supervisors, by resolution, to modify the tax rate during the term of the tax.

· Outlines the distribution of monies if the county that initially imposes the tax is divided into two or more new counties during the term of the tax.

· Stipulates that monies shall be used for the same purposes as the previous JFET and states the funds may also be for implementing other programs designed to reduce the expense of adult and juvenile jail facilities.

· Specifies maintenance of effort requirements. The base expenditure amount is required to be adjusted each year based on the change in the GDP Price Deflator from the previous fiscal year.

· Contains a conditional delayed repeal date of January 1, 2009.

Amendments

HB 2313 was amended in the Counties & Municipalities Committee as follows:

· Allows the county to use tax revenues to renovate existing adult and juvenile jail facilities.

HB 2313 was amended in the Committee of the Whole as follows:

· Removes provisions in the bill pertaining to the collection of a use tax on the use or consumption of electricity or natural gas by retail electric or natural gas customers in the county and subject to use tax pursuant to AR.S. § 42-5155.

· Removes the option for the county to increase the rates of the tax during the term of the tax.

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45th Legislature

Second Regular Session 2 April 3, 2002

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