SB 1246 Summary

• Establishes new county transportation excise tax provisions for counties with 3 million or more residents, creating sections 42-6105.01 and 42-6105.02 with tax rates of 8.6 percent and 1.3 percent respectively, effective December 31, 2025, if approved by voters.

• Allocates tax revenues as follows: 53.5 percent to freeways and state highways, 18.5 percent to arterial streets and intersection improvements (minimum 13.5 percent), and 28 percent to public transportation under section 42-6105.01; section 42-6105.02 dedicates revenues solely to public transportation including light rail maintenance with maximum 25 percent for capital rehabilitation.

• Prohibits use of revenues for light rail extensions between 7th and 19th Avenues and Adams and Jefferson Streets in Phoenix, active transportation projects, lane mile reductions, polling, and influencing election outcomes.

• Establishes farebox recovery ratio standards for bus routes funded by these taxes, requiring 13-19 percent recovery ratios by fiscal year 2031-2032, with failing routes subject to public bidding or elimination under section 48-5121.

• Requires regional planning agencies to adopt budget processes ensuring estimated transportation project costs do not exceed available revenues over the tax term, with performance audits conducted every five years.