 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
FACT SHEET FOR H.B. 4151/S.B. 1844
2026-2027 revenue.
Purpose
Makes statutory and session law changes relating to revenue necessary to implement the FY 2027 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
H.B. 4151 contains the budget reconciliation provisions for changes relating to revenue.
Provisions
1. Extends, from June 30, 2028, to June 30, 2029, the requirement:
a) for the Arizona Department of Revenue (ADOR) to assess and collect fees from specified entities to implement the ADOR Integrated Tax System Modernization Project (Tax Modernization Project);
b) for ADOR to transfer monies from the 0.6 percent additional education transaction privilege tax (TPT) to implement the Tax Modernization Project; and
c) for the State Treasurer to transfer monies from marijuana excise tax revenues, monies to implement the Tax Modernization Project.
2. Declares the Legislature's intent that the total amount of fees that ADOR must assess on the following entities in FY 2027 to implement the Tax Modernization Project may not exceed $6,286,300 and must be assessed in proportion to the aggregate amount of tax revenues distributed for the fiscal year two years preceding the current fiscal year:
a) counties, cities, and towns that receive state shared revenues;
b) the Maricopa County council of governments; and
c) Maricopa County and Pima County regional transportation authorities.
3. Includes the Maricopa County one-half cent transportation excise tax in the assessment of fees for the Tax System Modernization Project.
4. Declares the Legislature's intent that a county's, city's or town's population in the most recent census must be used as the basis for apportioning the assessment.
5. Declares the Legislature's intent that the amount of the 0.6 percent additional education TPT revenues transferred for the Tax Modernization Project not exceed $762,300 in FY 2027.
6. Declares the Legislature's intent that the amount of marijuana excise tax revenues transferred for the Tax Modernization Project not exceed $169,800 in FY 2027.
7. Makes technical changes.
8. Becomes effective on the general effective date.
The Governor indicates in her veto message that H.B. 4151, and this version of the FY 2027 state budget as a whole, would cause Arizona to default on its debt obligations, endanger vulnerable children, cut public safety funding and provide tax breaks for billionaires, data centers and special interests. The Governor outlines her specific concerns, including cuts to funding for specified agencies and programs, and invites the Legislature to return to the negotiating table.
House Action Senate Action
APPROP 4/28/26 DP 11-7-0-0 ATT 4/28/26 DP 6-4-0
3rd Read 4/29/26 33-20-7 3rd Read 5/4/26 16-12-2
(H.B. 4151 was substituted for S.B. 1844 on 3rd Read)
Vetoed by the Governor 5/5/26
Prepared by Senate Research
May 7, 2026
MG/SJ/ci