Maricopa County officials hope that lawmakers will allow voters to consider extending the nearly 30-year-old half-cent sales tax that funds the prison in the next election.
The county jail excise tax is similar to the transportation excise tax, which voters just renewed by passing Proposition 479, a half-cent sales tax used to fund transportation infrastructure. The prison tax expires in 2027, but counties cannot put it on the ballot to renew the prison tax without approval from the Legislature.
Members of the county’s Public Safety Funding Committee recently recommended to the Board of Supervisors that the tax be extended for 20 years at the current rate of one-fifth of a penny.
“The prison excise tax generates approximately $300 million annually, making it an effective way to fund the county’s growing public safety needs while keeping the burden low on individual taxpayers.” Superintendent Clint Hickman said in a Dec. 16 document. News release. “I agree with the commission’s recommendation that extending tax rates at current rates is the best way to ensure that people continue to live in safe communities where they can thrive economically.”
County voters first approved the tax in 1998 and it was extended in 2002. With an expiration date approaching March 2027, Congress will have to address the issue either in the next session or in 2026.
Since the tax was introduced, the county has received more than $3.6 billion in revenue that has been allocated to the jail. More than 40% of the county’s jail funding comes from jail taxes, with $270 million in revenue starting in 2023.
At the Dec. 9 Oversight Committee meeting, Hickman reminded lawmakers of the importance of the prison tax, which has been in place for at least a decade since Rep. Andy Biggs (R-Ariz.) served as president of the state Senate. He said he came.
“It’s very important for this board, which is very conservative and fiscally prudent, to understand what the Legislature is asking of it,” Hickman said. “I’ve seen time and time again how this can lead people to make difficult decisions about their financial health, so I hope they open their ears and listen.”
House Republican leaders did not comment on whether they would pursue putting the extension question on the ballot in the next Congress.
If Republicans pursue an extension, it would have to be a plan supported by Gov. Katie Hobbs. The governor’s office was at odds with Republicans in the early stages of transportation tax renewal negotiations, primarily over funding for public transportation.
Maricopa County is the only county in the state that must pass a sales tax through the Legislature to put it on the ballot.
“Extending the tax rate at the current rate makes sense to me because it ensures consistent funding for important public safety needs,” Supervisor Bill Gates said in a news release.
An October report from Rounds Consulting Group determined that not extending the prison tax could lead to higher local taxes and a decline in public safety.
County officials could raise property taxes or service fees to make up for lost revenue, neither of which are desirable options for the Republican-majority Board of Supervisors.
Another option outlined by Lowndes is to create special taxing districts, but the consulting group said these districts are often complex to administer and can have uneven financial impacts on residents. he warned.
Incoming House Minority Leader Oscar de los Santos, D-Lavigne, said: 3 tv House Democrats say they support sending the prison tax extension to voters.
