AMENDED
ARIZONA
STATE SENATE
RESEARCH STAFF
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KAITLYN NEFF |
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LEGISLATIVE RESEARCH ANALYST TRANSPORTATION & TECHNOLOGY COMMITTEE Telephone: (602) 926 -3171 |
DATE: March 21, 2018
SUBJECT: Strike everything amendment to H.B. 2162, relating to county transportation excise tax
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Purpose
Allows the electors of certain counties to approve an additional county transportation plan and excise tax on submission of a ballot measure by the county Board of Supervisors (BOS). Allows the BOS in certain counties, upon written request of the regional planning agency or regional transportation authority, to call and conduct an election to approve a renewal and extension of a transportation excise tax for a new transportation plan.
Background
Statute authorizes counties to hold a countywide election to approve the levying and collection of a county transportation excise tax. The county transportation excise tax is distributed based on the size of the county and the type of transportation authority organized.
The county transportation tax rate is limited to not more than 10 percent of the transaction privilege tax rate levied in the county and not more than 10 percent of the statutory jet fuel tax rate (A.R.S. §§ 42-6105; 42-6106; and 42-6107).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Additional Transportation Excise Tax and Plan
1. Allows a county BOS in a county of 400,000 persons or fewer to submit an additional transportation plan and accompanying excise tax to the county voters for approval.
2. Requires the additional transportation plan and excise tax to be presented as one issue on the ballot for approval or disapproval of the tax.
3. Stipulates that the additional county transportation excise tax begins the January 1 or July 1 following the vote, whichever is sooner but at least 50 days after voter approval.
4. Specifies that the tax base for an additional transportation excise tax applies to the same tax base as the existing county transportation excise tax.
a) 20 percent of the TPT tax rate for businesses;
b) 20 percent of the jet fuel tax rate; or
c) the utilities TPT rate for the use or consumption of retail electricity or natural gas.
6. Requires the BOS to include a termination date for the additional county transportation excise tax that is within 240 months from the beginning of the tax levy.
7. Requires revenues collected under an approved additional country transportation excise tax to be deposited into a dedicated fund for the payment of costs and obligations under the accompanying county transportation plan.
8. Requires the additional county transportation plan submitted to the electors to:
a) be developed in collaboration with specified authorities; and
b) specify the allocation of revenues collected under the plan.
9. Allows the additional county transportation plan submitted to the electors to include:
a) multimodal transportation systems and improvements; and
b) coordination with neighboring counties.
Transportation Plan and Excise Tax Renewal
10. Allows the county BOS, at the written request of the regional planning agency in a county of greater than 1,200,000 persons or the regional transportation authority in a county with a population between 400,000 and 1,200,000 persons, to call and conduct an election to approve a renewal and extension of a transportation excise tax.
11. Requires the submission to the voters for a renewal and extension of the transportation excise tax be presented as a single ballot measure for approval or disapproval of the tax and the election to occur on a regularly scheduled countywide general election day.
12. Specifies that the renewed or extended transportation excise tax begins:
a) for a county of greater than 1,200,000 persons, January 1, 2026, continuing for 20 years; and
b) for a county with a population between 400,000 and 1,200,000 persons, the January 1 or July 1, whichever is sooner at least 60 days after the election and continuing for a term determined by the regional transportation authority between 120 and 240 months.
13. Stipulates that the tax rate is:
a) for a county of greater than 1,200,000 persons, the current statutory rate for an existing county transportation excise tax; and
b) for a county with a population between 400,000 and 1,200,000 persons, together with any currently levied transportation excise or road tax, not more than 20 percent of the 1990 TPT rate for businesses or the jet fuel tax rate, and at the same rate as the utilities TPT rate for the use or consumption of retail electricity or natural gas.
14. Directs revenues collected from the renewal of a transportation excise tax in a county of greater than 1,200,000 persons to:
a) the Regional Area Road Fund to use for capital expense and maintenance of the state highway system, and capital expense and implementation studies of major arterial street and intersection improvements; and
b) the Public Transportation Fund for capital costs, maintenance and operation of public transportation systems included in the transportation plan.
15. Limits, to 19.5 percent of total renewal transportation excise tax monies, Public Transportation Fund monies allocated for light rail purposes in any fiscal year.
16. Directs revenues collected from the renewal of a transportation excise tax in a county with a population between 400,000 and 1,200,000 persons to the Regional Transportation Fund to carry out the regional transportation plan.
17. Specifies that any existing road tax and adopted plan remain, regardless of the outcome of a ballot measure proposing a renewal of a transportation excise tax in a county of between 400,000 and 1,200,000 persons.
Miscellaneous
18. Restricts collected revenues to transportation purposes outlined in the Arizona Constitution and specifies monies are exempt from county expenditure limitations.
19. Requires the Regional Planning Agency to review and modify the allocation of transportation excise tax revenues as necessary to accommodate for changes every fifth year.
20. Specifies that this legislation does not constitute a submission for referendum approval.
21. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Adopted the strike-everything amendment.
2. Removes language specifying the initial allocation of revenues collected under an extended and renewed transportation excise tax in a county with a population of 1.2 million persons or greater.
3. Limits the allocation for light rail purposes to 19.5 percent of extended or renewed transportation excise tax monies in a county with a population of 1.2 million persons or greater.
4. Requires the Regional Planning Agency to review and modify the allocation of transportation excise tax revenues as necessary to accommodate for changes every fifth year.
5. Makes conforming changes.
Senate Action
TRANSIT 3/20/18 DPA 7-0-0