SB 1102 Summary

• Establishes a new county transportation excise tax in Maricopa County (population 3 million+) with approval by voters, effective for 20 years at rates up to 10% of transaction privilege tax and utilities taxes.

• Allocates tax revenues as follows: 40.5% to freeways and state highways, 37% to public transportation, and 22.5% to arterial streets, intersections and regional infrastructure.

• Prohibits use of tax revenues for light rail extensions and restricts lane reductions on highways unless approved by transportation policy committee with engineering studies demonstrating no increase in congestion.

• Creates a farebox recovery audit requirement for public transportation beginning fiscal year 2026-2027, requiring the system achieve 10-20% recovery ratio depending on year, with jurisdictions liable for shortfalls.

• Changes governance by expanding the transportation policy committee to include representatives of unincorporated areas, taxpayers, housing development, and resiliency interests, and shifts planning structure to require performance-based budget processes with revenue caps by transportation mode.