If accepted by voters, the tax revenues collected would be allocated to various specific funds including the regional area road fund and the public transportation fund. The bill outlines how the net revenues would be distributed—56.2% for the state highway system, 10.5% for major arterial streets, and 33.3% for public transportation projects, including operations and capital costs associated with light rail. These allocations are intended to enhance public safety, reduce congestion, and improve travel efficiency across the region.
Summary
House Bill 2598 is a legislative measure aimed at implementing a transportation excise tax for Maricopa County, contingent upon voter approval. The bill seeks to amend existing statutes related to transportation planning and finance, specifically targeting the development, modernization, and expansion of transportation infrastructure. One major aspect of this initiative is the proposed excise tax, which may reach up to ten percent of the transaction privilege tax rate, intended to fund significant transportation projects for a defined period of twenty-five years, starting from December 31, 2025.
Contention
There are notable points of contention surrounding the funding model proposed in HB 2598. Opponents of the measure may express concerns about the financial impact of a new tax on residents, particularly in regards to its long-term sustainability and the burden it places on households. Additionally, debates may arise regarding the effectiveness of the planned expenditures and whether they genuinely address the community's transportation needs. The requirement for voter approval adds a democratic element but also introduces uncertainty as public sentiment towards tax initiatives varies widely.