ARIZONA STATE SENATE
Phoenix, Arizona
jail facilities excise tax;
extension
Authorizes a county with a
population of at least 1.5 million persons to seek voter approval to extend an
excise tax for authorized jail facilities expenditures for no more than 20
years.
In 1998, the Legislature
authorized Maricopa County to levy a jail facilities excise tax at a rate of no
more than four percent of the transaction privilege tax, subject to the
approval of the voters. The duration of
the tax was limited to nine years or until $900 million is collected, whichever
occurs first (Laws 1998, Chapter 225).
Maricopa County voters approved a 1/5 of a cent jail facilities excise
tax for construction and operation of new Maricopa County medium and maximum
security jail facilities and juvenile detention facilities. The current tax will expire in 2007.
Statute authorizes the
county jail facilities excise tax monies to be used to finance and construct
new adult and juvenile jail facilities, maintain and operate adult and juvenile
jail facilities and fund specified programs to reduce the expense of adult and
juvenile jail facilities. H.B. 2313 authorizes Maricopa County to request voter
approval to extend the jail facilities excise tax and reauthorizes the current
uses of the tax as well as including the renovation of adult and juvenile jail
facilities and implementation of other programs designed to reduce the expense
of adult and juvenile jail facilities.
At the time of passage of
the excise tax, Maricopa County recognized that what the voters passed would
not accommodate necessary ongoing future operational costs, which were
estimated to cost approximately $75 to $80 million per year. The County has attempted to build up
operating costs for the future by saving money in the general fund, by delaying
capital improvements and limiting net long-term debt. However, due to the economic downturn and escalating costs, the County
will not be able to save up sufficient dollars.
According to Maricopa
County, the jail facilities excise tax generated approximately $97 million in
revenue for FY 2000-2001. There is no
discernible fiscal impact to the state general fund associated with this
measure.
1. Authorizes the board of supervisors of a county with a population of at least 1.5 million persons to call a countywide general election to seek voter approval to extend the county jail facilities excise tax for no more than 20 years.
2. Requires the resolution to call for the election to include a statement of the current and future revenues and expenditure of the tax, and identify the projects, programs and categories for which expenditures are contemplated and the amount of taxes estimated to be expended
3. Requires the financial statement to be printed in the ballot proposition publicity pamphlet.
4. Includes renovation of adult and juvenile jail facilities in the uses eligible for monies from the county jail facilities excise tax extension.
5. Expands the purpose of reducing the expense of adult and juvenile jail facilities to include implementation of other programs designed to reduce the expense of adult and juvenile jail facilities as an additional use for the county jail facilities excise tax extension.
6. Includes related support facilities in the definition of “jail facility” for the excise tax extension.
7. Requires the county to maintain its support of adult and juvenile jail facilities.
8. Requires the county to pay an amount equal to the amount paid prior to the current tax, adjusted by the percentage change in the GDP and requires this amount to be adjusted each fiscal year. Defines "GDP."
9. Requires the county treasurer to transfer the county's maintenance of effort to the county general fund in 12 month installments.
10. Repeals the tax extension authority on January 1, 2009 if the tax is not approved by the voters.
11. Provides for a general effective date.
Amendments
Adopted by Committee
· Requires any resolution by the board of supervisors calling for an election to levy a jail excise tax to include a statement of an estimate of current and future revenues and expenditures generated by the tax.
House Action Senate Action
CM 3/19/02 DPA 9-0-0-0 GOV 4/11/02 DISC PETITION
3rd Read 4/4/02 48-7-5-0 FIN 4/11/02 DISC PETITION
3rd Read 4/30/02 18-10-2
Prepared by Senate Staff
April 30, 2002