Assigned to PS* FOR COMMITTEE
*pending committee assignment
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1144
jail facilities; excise tax; extension
Purpose
Authorizes a county that levies a jail facilities excise tax by resolution adopted before the
expiration of the tax (Maricopa County) to extend the tax for up to 20 years, if approved by
qualified voters before January 1, 2028.
Background
In 1998, the Legislature authorized Maricopa County to levy a jail facilities excise tax at a
rate of no more than four percent of the state transaction privilege tax (one-fifth cent jail tax) for
up to nine years or until $900 million is collected, whichever occurs first, subject to the approval
of the voters. Maricopa County voters approved the one-fifth cent jail tax for the construction and
operation of medium and maximum security jail facilities and juvenile detention facilities (A.R.S.
§ 42-6109).
In 2002, the Legislature authorized Maricopa County to extend the jail tax, upon resolution
and voter approval, for up to 20 years after the expiration of the initial tax that: 1) reauthorizes
eligible uses for jail tax collections and includes the renovation of adult and juvenile jail facilities
and implementation of other programs designed to reduce the expense of adult and juvenile jail
facilities; and 2) requires Maricopa County to maintain its support of jail facilities as prescribed
(A.R.S. § 42-6109.01). In 2007, Maricopa County approved an extension of the jail tax which is
set to expire in 2027. The jail tax has generated approximately $3.6 billion in revenue from FY
1999 to FY 2024 (Maricopa County).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows the Maricopa County Board of Supervisors (BOS) to call for a countywide general
election to authorize the levy of a jail tax by resolution adopted before the expiration of that
tax in addition to all other taxes.
2. Requires, if approved by the qualified voters, the Maricopa County BOS to levy and the
Arizona Department of Revenue to collect a jail tax at a rate of up to one-fifth of a cent.
3. Allows the Maricopa County BOS to decrease the rate of the jail tax during the term of the tax
by resolution. FACT SHEET
S.B. 1144
Page 2
4. Requires the resolution to:
a) include a statement of the jail taxes collected due to the extension and an accounting of the
budgeting of those revenues by Maricopa County;
b) include a projection of the amount of taxes anticipated to be collected annually if the jail
tax levy is approved in the countywide general election;
c) identify the projects, programs and categories for which expenditures are contemplated and
the estimated amount of jail taxes to be expended for each; and
d) be printed in the ballot proposition publicity pamphlet that will be mailed to every
household with a registered voter.
5. Requires the jail tax to:
a) be levied beginning in the month following the expiration of the previous jail tax; and
b) not continue for more than 20 years after the date the tax collection begins.
6. Requires the State Treasurer to transmit the net revenues of the jail tax to the Maricopa County
Treasurer at the end of each month.
7. Stipulates that the Maricopa County Treasurer may only disburse jail tax revenues to:
a) finance construction or renovation of adult and juvenile jail facilities;
b) maintain and operate adult and juvenile jail facilities; and
c) fund and implement other programs designed to reduce the expense of adult and juvenile
facilities.
8. Requires Maricopa County to maintain its support of adult and juvenile jail facilities.
9. Requires Maricopa County:
a) in the first fiscal year the jail tax is levied, to pay an amount equal to the amount paid under
the jail tax in the preceding fiscal year, adjusted by the percentage change in the GDP price
deflator from the preceding fiscal year; and
b) in each fiscal year the tax is imposed, to pay an amount equal to the amount paid in the
preceding fiscal year, adjusted by the percentage change in the GDP price deflator from
the preceding fiscal year.
10. Directs the Maricopa County Treasurer to transfer that amount, without further authorization,
in 12 equal monthly installments from the Maricopa County General Fund for authorized uses.
11. Defines jail facility as a jail or other place of detention of persons who are:
a) charged with or convicted of a crime; or
b) subject to the jurisdiction of the juvenile court, including related support facilities.
12. Defines GDP price deflator as the average of the four implicit price deflators for the gross
domestic product reported by the U.S. Department of Commerce for the four quarters of the
calendar year.
13. Repeals the jail tax extension authority on January 1, 2028, if the tax has not been approved
by the voters. FACT SHEET
S.B. 1144
Page 3
14. Makes conforming changes.
15. Becomes effective on the general effective date.
Prepared by Senate Research
January 21, 2025
KJA/ci