HB 2598
Initials AC Page 1 Transportation
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2598: transportation tax; election; Maricopa county.
Sponsor: Representative Carroll, LD 22
Committee on Transportation
Overview
Requires Maricopa County, beginning on January 1, 2026, if approved by qualified electors voting
in a county wide election, to levy and the Arizona Department of Transportation (ADOT) to collect
a transportation tax. Additionally, if approved by the voters, establishes a transportation excise
tax plan (Plan).
History
In 2004, Maricopa County voters approved a countywide transportation tax levied at a rate up to
10% of the state transaction privilege tax (one-half cent transaction tax). Revenues from the half
cent transportation tax are deposited into the Regional Area Road Fund (RARF). Laws 2003,
Chapter 217 established the Regional Planning Agency Transportation Policy Committee (TPC)
which is tasked with the approval of a 20-year comprehensive, performance based, multimodal
and coordinated regional transportation plan in Maricopa County.
The Maricopa Association of Governments (MAG) is a Council of governments that serves as the
regional planning and policy agency for the metropolitan Phoenix area. Monies collected from the
voter- approved transportation taxes are deposited into MAG's RARF to be used by MAG for
maintenance and capital expenses of freeways and the state highway system. (A.R.S. § 42-6106).
Provisions
1. Modifies population requirements for highly populated counties from 1,200,000 to 3,000,000
or more. (Sec. 3)
2. Requires ADOT to separately account for the uses of the transportation tax revenues
deposited in the bond account and construction account to identify how the revenues are
used. (Sec. 4)
3. Adds two additional seats to the Transportation Policy Committee (TPC) representing
unincorporated areas of Maricopa County. One seat is appointed by the President of the
Senate and one by the Speaker of the House. (Sec. 9)
4. Requires the regional planning agency to develop and adopt the multimodal regional strategic
transportation infrastructure investment plan in cooperation with state and local public
transportation authorities and in coordination with ADOT. (Sec. 4)
5. Requires the TPC to recommend approval, disapproval or modification of:
a) The Plan;
b) Changes to transportation tax revenues;
c) Budget processes; and
d) Funding awarded through the regional programs process. (Sec.9)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☒ Emergency (40 votes) ☐ Fiscal Note HB 2598
Initials AC Page 2 Transportation
6. Allows the Auditor General to conduct a performance audit themselves or contract with an
outside firm. (Sec.11)
7. Requires MAG to develop and adopt the Plan which and to allocate revenues in the:
a) RARF for freeways and other routes in the state highway system;
b) RARF for major arterial streets and regional programs; and
c) Public Transportation Fund for capital costs, maintenance and operation of public
transportation mode classifications and utility relocation costs associated with the light rail
system. (Sec. 15)
8. Requires the major investment change process to include:
a) Consideration by the TPC;
b) Identification of the projects and programs that would be impacted by the funding transfer;
c) A detailed performance-based assessment of the impacted projects and programs which
must support the proposed major investment change and seek, consider and document
public input on the proposed major investment change;
d) A 180-day public comment period; and
e) The submission of the proposed major investment change for review by the regional public
transportation authority, the state board of transportation and the county Board of
Supervisors (BOS). (Sec. 15)
9. Allows up to 2.5% of collected transportation tax revenues to be transferred annually without
going through the major investment change process. (Sec. 15)
10. Allows a municipality that pays for public transportation service in an adjacent municipality or
unincorporated area to be eligible for reimbursement from monies collected under the
transportation tax. (Sec.15)
11. Requires the transportation excise tax to be levied and collected:
a) At a rate of up to 10% of the state transaction privilege tax (TPT) rate on January 1, 2026;
b) At a rate of up to 10% of the jet fuel excise tax rate; and
c) On the use or consumption of electricity or natural gas by customers in the county who
are subject to use tax at a rate equal to the state TPT rate that applies to customers
engaging in the county in the utilities TPT classification. (Sec. 22)
12. Requires the Plan to distribute at least:
a) 52.5% of the annual transportation tax revenues to the RARF; and
b) 32.5% of the annual revenues to the Public Transportation Fund. (Sec. 22)
13. Allows up to 14% of the revenues collected be spent on light rail systems. (Sec. 22)
14. Requires the levied tax to be in effect for 25 years. (Sec. 22)
15. Describes processes for the county to call a countywide election for the extension and levy of
a county transportation excise tax. (Sec. 27)
16. Contains an emergency clause. (Sec. 29)
17. Makes technical changes. (Sec. 1,2,5,6,11,16,22)
18. Makes conforming changes. (Sec. 1,2,5,6,7,11,12,13,16,19,20,21,22,25)