HB 2106

House Engrossed
transportation tax;
  deposit; county board
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2106
AN
ACT
amending section 42-6106, Arizona Revised
Statutes; relating to county excise taxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 42-6106, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-6106. County transportation excise tax
A. If approved by the qualified electors voting at a
countywide election, the regional transportation authority in any county shall
levy and the department shall collect a transportation excise tax up to the
rate authorized by this section in addition to all other taxes.
B. The tax shall be levied and collected:
1. At a rate that, by itself or together with any
tax imposed pursuant to section 42-6107, is not more than twenty percent
of the transaction privilege tax rate prescribed by section 42-5010,
subsection A in effect on January 1, 1990 to each person engaging or continuing
in the county in a business taxed under chapter 5, article 1 of this title.
2. At a rate that, by itself or together with any
tax imposed pursuant to section 42-6107, is not more than twenty percent
of the rate prescribed by section 42-5352, subsection A.
3. On the use or consumption of electricity or
natural gas by retail electric or natural gas customers in the county who are
subject to use tax under section 42-5155, at a rate equal to the
transaction privilege tax rate under paragraph 1 of this subsection applying to
persons engaging or continuing in the county in the utilities transaction
privilege tax classification.
C. Any subsequent reduction in the transaction
privilege tax rate prescribed by chapter 5, article 1 of this title shall not
reduce the tax that is approved and collected as prescribed in this
section. The department shall collect the tax at a variable rate if
the variable rate is specified in the ballot proposition.� The department shall
collect the tax at a modified rate if approved by a majority of the qualified
electors voting.
D. The net revenues collected under this section:
1. In counties with a population exceeding
of more than four hundred thousand persons, shall be
deposited in the regional transportation fund pursuant to section 48-5307.
2. In counties with a population of four hundred
thousand or fewer persons, shall be deposited in the public transportation
authority fund pursuant to section 28-9142 or the regional transportation
fund pursuant to section 48-5307 or shall be allocated between both
funds.
E. The tax shall be levied under this section
beginning January 1 or July 1, whichever date occurs first after approval by
the voters, and may be in effect for a period of not more than twenty years.
F. Net revenues collected under this
section, including interest earned on those revenues, that are not distributed
pursuant to subsection D of this section and that are not refunded pursuant to
section 42-1118 on or before April 10, 2026 shall be distributed as
follows:
1. For a county with a population of
more than four hundred thousand persons that levied and collected the tax, to
the department of transportation for transportation projects in the county.
2. For a county with a population of
four hundred thousand or fewer persons that levied and collected the tax, to
the department of transportation for transportation projects in the county.
END_STATUTE
Sec. 2. Emergency
This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.