Bill > HB2002

This bill modifies Arizona's law on county transportation excise taxes by making several key changes. Currently, counties can levy a transportation excise tax (up to 20% of certain transaction privilege tax rates) if approved by voters, with the revenues being deposited into specific transportation funds depending on the county's population. The bill introduces a new provision that stipulates how any remaining net revenues collected from this tax, including interest, that are not initially distributed or refunded, must be allocated. For counties with over 400,000 people, these remaining funds will be directed to the state Department of Transportation for transportation projects within that county. Similarly, for counties with 400,000 or fewer people, the remaining funds will also go to the Department of Transportation for local transportation projects. The bill also makes a minor language adjustment, changing "exceeding" to "of more than" when describing county population thresholds. The changes will become effective on April 9, 2026, and the transportation excise tax can still be levied for up to 20 years after voter approval, maintaining the existing framework while clarifying the distribution of any surplus tax revenues.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81617