REFERENCE TITLE: county excise tax for transportation.




State of Arizona


Fifty-third Legislature

Second Regular Session



SB 1147


Introduced by

Senators Worsley: Bowie, Brophy McGee, Fann, Kerr, Otondo, Pratt





Amending title 42, chapter 6, article 3, Arizona Revised Statutes, by adding section 42-6104; relating to county transportation excise tax.





Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 42, chapter 6, article 3, Arizona Revised Statutes, is amended by adding section 42-6104, to read:

START_STATUTE42-6104.  County supplemental excise tax for transportation; special fund; transportation plan

A.  The board of supervisors of any county, on a majority vote, may submit to and for approval by the qualified electors of the county a transportation plan funded by an excise tax that is in addition to any county excise tax levied or authorized pursuant to section 42-6105, 42‑6106 or 42-6107.  The board shall present the issue on the ballot as a single question for approval or disapproval of both the transportation plan and the tax.

B.  If approved by the qualified electors voting on the issue at a countywide election, the county shall levy and the department shall collect the tax authorized by this section as follows:

1.  The tax shall be levied under this section beginning January 1 or July 1, whichever date occurs first after voter approval.

2.  The tax shall be levied on the same tax base that applies to an excise tax in the respective county as prescribed by section 42-6105, 42‑6106 or 42-6107.

3.  The tax shall be levied at a rate that, together with any tax rate currently levied pursuant to section 42-6105, 42-6106 or 42-6107, will not exceed a total of one percent of the gross proceeds of sales or gross income from a business subject to the tax.  In its initial submission to the electors, the board of supervisors may propose that, if a tax levied in the county under section 42-6105, 42-6106 or 42-6107 expires or the rate of tax is reduced, the rate of tax levied under this section would increase automatically, subject to the one percent limit prescribed by this paragraph.

C.  In its initial submission to the electors, the board of supervisors shall either set a termination date for the tax or provide that the tax will be perpetual, subject to termination only by a subsequent countywide vote of the qualified electors.

D.  The county shall deposit the net revenues collected under this section in a special county transportation fund exclusively for the payment of costs and obligations incurred under the transportation plan approved under this section.  The transportation plan:

1.  Shall be developed in collaboration with existing state, regional and local transportation authorities and planning agencies.  

2.  Shall specify the allocation of the collected revenues.

3.  May include multimodal transportation systems and improvements.

4.  May include coordination with authorities and agencies in neighboring counties.

E.  Monies collected pursuant to this section that are spent according to the purposes described in article IX, section 20, subsection (3), paragraph (d), subdivisions (i) and (viii), Constitution of Arizona, are exempt from the county's expenditure limitation.

F.  This section does not constitute a submission of any provision of law to the people for approval under the power of the referendum. END_STATUTE