transportation tax; deposit; county board

Plain English Breakdown

The official metadata states 'House third read failed' while also noting the bill reached 'final enrollment,' creating uncertainty about whether this law is currently active or if it was vetoed/overridden.

HB2106: Sending Unused County Transportation Tax Money to ADOT

This bill requires any county transportation tax money that was not spent or returned before April 10, 2026, to be sent to the Arizona Department of Transportation for local road projects.

What This Bill Does

• Requires counties with more than 400,000 people to send unused transportation tax funds to ADOT.
• Requires counties with 400,000 or fewer people to send unused transportation tax funds to ADOT.
• Includes interest earned on the collected taxes in the amount sent to ADOT.
• Sets April 10, 2026 as the deadline for distributing these specific funds before they must go to ADOT.
• Designates that the money received by ADOT will be used for transportation projects within those counties.

Who It Names or Affects

• Counties in Arizona with a population over or under 400,000 people
• The Arizona Department of Transportation (ADOT)
• Regional Transportation Authorities that collect the tax

Terms To Know

Transportation Excise Tax

A special tax approved by voters in a county to fund transportation improvements.

Net Revenues

The total money collected from the tax after any costs are subtracted, including interest earned on that money.

Regional Transportation Authority (RTA)

A public group in a county created to manage transportation projects and collect taxes for them.

Limits and Unknowns

• The bill only applies to tax money that was not distributed or refunded by April 10, 2026.
• The text does not specify exactly which road projects ADOT will build with this new funding.
• This measure is labeled as an emergency law but the summary notes it failed a final House vote on February 25, 2026.

Official Summary Text

HB2106 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: RED DP 7-0-0-0

HB
2106
: transportation tax; deposit; county board

Sponsor:
Representative Martinez, LD 16

House
Engrossed

Overview

An emergency
measure that allocates any undistributed or nonrefunded revenues collected from
a county transportation excise tax to the Arizona Department of Transportation (ADOT)
for transportation projects in the county.

History

A county may
establish a Regional Transportation Authority (RTA) which is a public,
political, tax levying public improvement and taxing subdivision of this state
and a municipal corporation to the extent of the powers and privileges
conferred by statute. The government of the authority is vested in a board of
directors composed of the members of the regional council of governments that
are from the county that established the authority (
Title
48, Chapter 30, A.R.S.
).

Statute allows a
county's RTA, if approved by qualified electors voting in a countywide
election, to levy a transportation excise tax. The Department of Revenue
collects the net revenues for deposit into the regional transportation fund or
the public transportation authority fund, based on population and in accordance
with statute (
A.R.S. � 42-6106
).

Provisions

1.

Directs the
net revenues collected, including interest earned, that are not distributed nor
refunded prior to April 10, 2026, be distributed:

a.

for a county
with a population of more than 400,000 persons that levied and collected the
tax, to ADOT �for transportation projects in the county; and

b.

for a county
with a population of 400,000 persons or less that levied and collected the tax,
to ADOT for transportation projects in the county. (Sec. 1)

2.

Contains an
emergency clause. (Sec 2)

3.

4.

5.

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6.

Initials PB���������������������� HB
2106

7.

2/24/2026� Page 0 House
Engrossed

8.

9.

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Current Bill Text

HB2106 - 572R - H Ver

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_STATUTE
42-6106.

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.