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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: APPROP DP 15-1-2-0 |
HB 4165: revenue; 2026-2027
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Contains provisions relating to taxation needed to implement the FY 2027 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.
Department of Revenue Integrated Tax System Project Fund (ITSPF) Laws 2022, Chapter 321 established the ITSPF to implement a multi-year integrated tax system modernization project (ITSMP) under the aegis of the Arizona Department of Revenue (DOR). The fund consists of: 1) fees assessed from local governments; 2) a portion of the education sales tax; and 3) a portion of the marijuana excise tax. Monies in the fund are subject to legislative appropriation and will be used solely for the administrative, development and other operating costs incurred in implementing the integrated tax system modernization project (ITSMP). A legislative intent clause provides guidelines for the assessment and collection of the fees.
Provisions
1. Extends, from June 30, 2028 to June 30, 2030, the requirement for:
a. DOR to assess and collect fees from counties, cities, towns, councils of governments and regional transportation authorities to implement the ITSMP;
b. Monies to be transferred from the 0.6% additional education transaction privilege tax to implement the ITSMP; and
c. Monies to be transferred from the 16% marijuana excise tax revenues to implement the ITSMP. (Sec. 1, 2)
2. Clarifies that the assessment and collection of fees for the ITSMP applies to the reauthorized Maricopa County Road Tax which went into effect on January 1, 2026. (Sec. 2)
3. Stipulates, as session law, legislative intent that the amount to be charged to all counties, cities, towns, councils of governments and regional transportation authorities with a population greater than 800,000 for the ITSPF shall not exceed $1,273,800 for FY 2027 and provides the mechanism to apportion the amount. (Sec. 4)
4. Stipulates, as session law, legislative intent that the amounts charged to the 0.6% education transaction privilege tax and the 16% to recreational marijuana excise tax for the ITSPF shall not exceed $154,500 and $34,400, respectively in FY 2027. (Sec. 4)
5. Repeals the DOR tax system modernization project advisory committee effective January 1, 2032. (Sec. 3)
6. Makes technical changes. (Sec. 1, 2)
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Initials VP HB 4165
6/11/2026 Page 0 House Engrossed
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