AZ HB2685

Establishes a new county transportation excise tax for counties with a population of three million or more persons (effective December 31, 2025) with a 25-year term, requiring voter approval at a countywide election.

Allocates tax revenues as follows: 37.4 percent for freeways and state highway routes; 22.2 percent for major arterial streets and regional programs; 40.4 percent for public transportation including light rail, with no more than 14 percent annually for light rail systems.

Creates a regional strategic transportation infrastructure investment plan and establishes a transportation policy committee with 17 regional planning agency members plus 6 business representatives and 2 unincorporated area representatives to recommend approval of the plan and budget allocations.

Implements a budget process requiring estimated project costs to not exceed available revenues over the tax term and establishes a "major investment change" process requiring 180-day public comment periods and approval by affected boards for significant funding transfers between transportation modes.

Requires the county to conduct a continuation election for the existing transportation excise tax during a four-year window before the current tax expires, with specific ballot language and a publicly mailed pamphlet describing the regional transportation plan.