SB1246

THE CONTEXT: In 2004, Maricopa County voters approved a countywide transportation tax levied at a rate up to 10% of the state transaction privilege tax (one-half-cent transaction tax). Revenues from the half-cent transportation tax are deposited into the Regional Area Road Fund (RARF).

WHAT THE BILL DID: The final vetoed version would requires, if approved by the qualified electors voting at a county-wide election, a county with a population of 3,000,000 or more people to levy, and ADOT to collect a transportation excise (County Transportation Excise Tax) tax beginning January 1,, direct County Transportation Excise Tax to be levied and collected: a) At a rate of up to 8.6% ($ 0.43) of the state transaction privilege tax (TPT) rate on January 1, 1990; b) At a rate of up to 8.6% of the jet fuel excise tax rate; and c) On the use or consumption of electricity or natural gas by customers in the county who are subject to use tax, at a rate equal to the state TPT rate that applies to customers engaging in the county in the utilities TPT classification, and state that the Plan adopted by the regional planning agency will specify the distribution of the collected monies and requires the Plan to distribute the revenues as follows: a) 53.5% to the RARF for freeways and other routes in the state highway system, including maintenance and capital expense; b) 18.5% to the RARF for major arterial streets, intersection improvements and regional programs, including capital expense and implementation studies. At least 13.5% is required to be distributed for major arterial streets and intersection improvements; and c) 28% to the Public Transportation Fund for capital costs, maintenance and operation of public transportation mode classifications.

WHY IT MATTERED: The practical reason for this bill was to make election administration and accountability rules for election more definite. It would requires, if approved by the qualified electors voting at a county-wide election, a county with a population of 3,000,000 or more people to levy, and ADOT to collect a transportation excise (County Transportation Excise Tax) tax beginning January 1,, and would also direct County Transportation Excise Tax to be levied and collected: a) At a rate of up to 8.6% ($ 0.43) of the state transaction privilege tax (TPT) rate on January 1, 1990; b) At a rate of up to 8.6% of the jet fuel excise tax rate; and c) On the use or consumption of electricity or natural gas by customers in the county who are subject to use tax, at a rate equal to the state TPT rate that applies to customers engaging in the county in the utilities TPT classification, rather than leave the current rule unchanged.