Bill To Keep Maricopa County Transportation Tax In Place Sails Through Senate Committee

On Tuesday, in a 9-0 vote, the Senate Transportation Committee passed a bill that includes an emergency measure directing the Maricopa County Board of Supervisors to call a countywide election for the continuation of the county transportation excise tax (transportation tax) to be held November 8, 2022.

The bill, SB1356, sponsored by Sen. Tyler Pace, “prescribes the levy and distribution of the transportation tax if approved by the voters and establishes a Transportation Tax Plan (Plan).”

Capitol insiders note that the bill has some other odd changes to the original version. For instance, it turns the shall audit language into “may” audit language. It also shifts the balance of spending from 2/3 roads and highways and 1/3 public transportation including light rail, to a minimum of 52.5% for roads and highways, allowing for a substantial cut, while preserving a 32.5% floor for public and light rail.

Pace’s tax continuation plan comes at a time when residents are struggling to fill their gas tanks. Earlier this year, taxpayers hoped  Governor Doug Ducey might follow the lead of Florida Governor Ron DeSantis, who declared a tax holiday for residents to ease the pain created by the Biden administration’s out-of-control inflation.

“To help alleviate the burden of inflation on Florida families, I am proposing a $1 billion gas tax holiday to help reduce prices at the pump. If Washington, D.C., won’t change course, then we have a responsibility to step up on behalf of Floridians,” tweeted DeSantis.

To help alleviate the burden of inflation on Florida families, I am proposing a $1 billion gas tax holiday to help reduce prices at the pump.

If Washington, D.C., won’t change course, then we have a responsibility to step up on behalf of Floridians. pic.twitter.com/F0S6QBLGHB

— Ron DeSantis (@GovRonDeSantis) January 11, 2022

However, prior to Monday’s unanimous vote, a swarm of lobbyists registered their approval of the tax on the Arizona Legislature’s Request to Speak System. As a result, one Capitol insider told the Arizona Daily Independent, “taxpayers won’t be able to stop this thing in the Legislature, so they better organize to kill it at the ballot box.”

In 2020, HURF revenue fell as a result of the Ducey administration’s lockdown, but due to the Biden administration’s inflation, fuel costs have risen dramatically forcing gas tax revenues up.

According to the Arizona Department of Transportation:

Arizona’s tax on gasoline (motor vehicle fuel) is 18¢ per gallon. Use fuel (diesel) is taxed at two rates in Arizona. If the use fuel is used in the propulsion of a use class motor vehicle on a highway in this state, the tax rate is 26¢ for each gallon.”

The state of Arizona taxes motor fuels and collects a variety of fees and charges relating to the registration and operation of motor vehicles on the public highways of the state. These collections include gasoline and use-fuel taxes, motor-carrier taxes, vehicle-license taxes, motor vehicle registration fees and other miscellaneous fees. These revenues are deposited in the Arizona Highway User Revenue Fund (HURF) and are then distributed to the cities, towns and counties and to the State Highway Fund.