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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: WM DPA/SE 8-0-0-1 |
HB 2273: distributions; transportation projects; Pinal county
S/E: income tax rebate; net revenues
Sponsor: Representative Martinez, LD 16
Caucus & COW
Overview
Requires ADOR, between October 15, 2027, and November 15, 2027, to issue a qualifying taxpayer a single rebate of $300 to reimburse full-time residents of Pinal County for payment of the Pinal County transportation excise tax that was invalidated by the Arizona Supreme Court in Vangilder v. Arizona Department of Revenue, 252 Ariz. 481 (2022).
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 had until April 9, 2026 to submit a refund request.
Provisions
1. Requires DOR to issue a $300 rebate to a Pinal County, Arizona taxpayer who filed a full-year resident tax return for TY 2026 and whose primary residence was located in Pinal County during TY's 2018 through 2024. (Sec. 1)
2. Provides that the taxpayer's taxpayer identification number for TY 2026 shall be used for matching and verification purposes. (Sec. 1)
3. Allows a deceased taxpayer's spouse, personal representative or executor or another official representative of the estate to receive the rebate for the deceased taxpayer. (Sec. 1)
4. Requires DOR to pay all rebates between October 15, 2027 and November 15, 2027. (Sec. 1)
5. Requires ADOR to attempt to pay each rebate by electronic funds transfer using the taxpayer's provided routing and account information on their TY 2026 tax return or, if unsuccessful, to issue the rebate check by mail to the most recent home address provided by the taxpayer. (Sec. 1)
6. Allows a taxpayer who does not receive the rebate by November 15, 2027, to claim the rebate by filing an online claim application in a form and manner prescribed by ADOR and requires the claim application to include the claimant's name, address, taxpayer identification number and individual income tax filing status. (Sec. 1)
7. Requires ADOR to review each claim application and verify the information provided and allows ADOR to request that a claimant provide evidence to verify rebate eligibility. (Sec. 1)
8. Requires a taxpayer, in computing Arizona adjusted gross income, to subtract from the taxpayer's Arizona gross income any rebate amount received by the taxpayer and required to be included in Arizona gross income under the U.S. Internal Revenue Code. (Sec. 1)
9. Subjects any appealable agency actions or contested cases relating to the rebate to uniform administrative hearing procedures. (Sec. 1)
10. Requires DOR to enter into a memorandum of understanding with Pinal County and the Pinal Regional Transportation Authority to pay the allowed rebates from the monies, including the interest earned, that are remaining in the escrow account in which the monies are being held. (Sec. 1)
11. Repeals the rebate on January 1, 2033. (Sec. 1)
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15. VP HB 2273
16. 2/18/2026 Page 0 Caucus & COW
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