Arizona 2026 Regular Session

Arizona House Bill HB2106

Introduced
1/12/26  
Report Pass
1/29/26  

Caption

transportation tax; deposit; county board

Summary

HB2106 amends Arizona’s county transportation excise tax statute to change how certain voter-approved transportation tax revenues are deposited and distributed. The bill keeps the existing framework that allows a countywide election to authorize a transportation excise tax, including taxes on business activity, certain rental classifications, and electricity or natural gas use, but it revises the revenue destination rules for counties of different population sizes. For counties over 400,000 people, net revenues would be deposited in the regional transportation fund; for counties with 400,000 or fewer people, revenues could go to the public transportation authority fund, the regional transportation fund, or be split between them. It also adds a provision directing any net revenues not otherwise distributed or refunded by April 10, 2026 to the Arizona Department of Transportation for county transportation projects.

Impact

The bill would amend A.R.S. § 42-6106, which governs county transportation excise taxes, by changing the statutory deposit and fallback distribution rules for tax revenues and by tying those rules to county population thresholds. It would not create a new tax, but it would affect how existing voter-approved county transportation excise tax proceeds are allocated among transportation-related funds and, in some cases, to ADOT for county projects. The bill also includes an emergency clause, meaning it was intended to take effect immediately if enacted.

Sentiment

The bill appears to have had some support in committee, advancing unanimously through the House Rural Economic Development Committee and the House Rules Committee, and it also received a committee-of-the-whole do-pass recommendation. However, it ultimately failed on third reading in the House by a 25-28 vote, indicating that support was not sufficient to pass the chamber. The available record suggests the proposal was viewed favorably by some members as a transportation funding measure, but not enough consensus existed for final approval.

Contention

The main point of contention appears to have been the reallocation of transportation excise tax revenues and the bill’s population-based treatment of counties. Members may have differed over whether revenues should be directed to regional transportation funds, public transportation authority funds, or the Department of Transportation, and over how much flexibility counties should have in using voter-approved tax proceeds. The failed floor vote suggests disagreement on the policy direction even though committee votes were unanimous.

Companion Bills

No companion bills found.

Previously Filed As

AZ HB2002

Transportation tax; deposit; county board

AZ HB2566

Transportation excise tax; election authority

AZ HB2704

Tax; distribution; county stadium district

AZ SB1096

Bullion depository; establishment

AZ SB1206

Banks; special deposits; requirements

AZ HB2234

Appropriation; Pinal County transportation study

AZ SB1286

Counties; board; administrative review; approval

AZ HB2031

Boards and commissions; state departments

AZ SB1144

Jail facilities excise tax; extension

AZ SB1239

Bank deposits; technical correction

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