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: distribution; transportation tax

Sponsor: Representative Martinez, LD 16

Committee on Ways & Means

 

Summary of the Strike-Everything Amendment to HB 2002

Overview

Suspends the Pinal County transportation excise tax until the unfunded revenues from the Pinal County Excise Tax are distributed into the Pinal County regional area fund.

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.   Mandates that DOR is to determine the amount of net revenue remaining from the unrefunded Pinal County Excise Tax and to post the amount on the DOR website beginning on or before April 30, 2026 and every month after until all revenue is distributed. (Sec. 1)

2.   Suspends the Pinal County transportation excise tax for roads from May 30, 2026 until the month all revenues from the unrefunded Pinal County Excise Tax are distributed. (Sec. 1)

3.   Prohibits DOR from collecting the Pinal County transportation excise tax for roads from May 30, 2026 until the month all revenues from the unrefunded Pinal County Excise Tax are distributed. (Sec. 1)

4.   Requires DOR to determine the amount of tax what would have been collected under the transportation excise tax and notify the State Treasurer, who is to distribute the amount of revenues from the unrefunded Pinal County Excise Tax to the Pinal Treasurer for the county regional area road fund. (Sec. 1)

5.   Defines net revenues. (Sec. 1)

6.   Repeals this section of law on Jan 1, 2028. (Sec. 1)

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10.                    HB 2002

11.  Initials VP/DD    Page 0 Ways & Means

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