ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

 

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2002: transportation tax; deposit; county board

S/E: transportation tax; distribution

Sponsor: Representative Martinez, LD 16

Committee on Ways & Means

 

Summary of the Strike-Everything Amendment to HB 2002

Overview

Prohibits Pinal County from levying a county transportation excise tax for roads beginning May 1, 2026 and requires the State Treasurer to distribute unrefunded revenues collected under the Pinal Regional Transportation Authority Excise Tax (Excise Tax) to the Pinal County Treasurer monthly beginning May 1, 2026 through December 31, 2026.

History

Pinal County voters approved a transportation Excise Tax that became effective April 1, 2018. A lawsuit challenging the constitutionality of the Excise Tax was filed in December 2017 and in March 2022 the Arizona Supreme Court issued a decision concluding the Excise Tax was unconstitutional.

Between April 1, 2018 and February 28, 2024, the Arizona Department of Revenue (DOR) collected nearly $87 million in Excise Tax revenues that has been deposited into an interest-bearing escrow account. The Pinal regional Transportation Authority has not expended any of the Excise Tax revenues or interest however the DOR has refunded a portion of the revenues to eligible taxpayers. Taxpayers that collected and remitted the Excise Tax have until April 9, 2026 to submit a refund request.

Provisions

1.   Prohibits Pinal County from levying a county transportation excise tax for roads beginning May 1, 2026 through December 31, 2026. (Sec. 1)

2.   Requires the State Treasurer to distribute unrefunded Excise Tax revenues collected to the Pinal County Treasurer monthly beginning May 1, 2026 through December 31, 2026. (Sec. 1)

3.   Requires the Pinal County Treasurer to distribute the unrefunded Excise Tax revenues proportionately to the cities and towns in Pinal County based on population. (Sec. 1)

4.   Repeals this section of law on January 1, 2028. (Sec. 1)

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8.                     HB 2002

9.   Initials VP           Page 0 Ways & Means

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