NewsPhoenix Metro News

Actions

Gov. Hobbs signs Proposition 400, transportation excise tax, into law

At stake is continuing a half-cent sales tax for another 20 years so it doesn't expire in 2026
Road Closure
Posted
and last updated

Governor Katie Hobbs has signed off on Proposition 400, sending it to voters this fall, after the state legislature passed it on the final day of the session.

This would continue 20 years of funding for road and other transportation improvements in Maricopa County — but it doesn't come without conditions.

At stake is continuing a half-cent sales tax for another 20 years so it doesn't expire in 2026.

Gov. Hobbs released the following statement after signing the bill:

Today, we showed we can put politics aside and work across party lines to get big things done for Arizona. I'm proud to sign this bill into law that will create hundreds of thousands of jobs, build and attract businesses, and help make Arizona the best place to work, live, and raise a family. With support spanning across political parties, businesses, workers and everyday Arizonans, Prop 400 will secure our economic future and give every Arizonan an opportunity to succeed in our thriving economy.

It's taken all session for lawmakers to come to an agreement largely because of differing views on funding the light rail expansion and the use of various public vehicles in the Valley based on emissions and fuel.

Some of that will be limited with the continued funding under this bill.

"Prioritize highways and roads, eliminate vague environmental projects, rehabilitate existing light rail but eliminate expansion and bus lines that meeting efficiency standards," said Republican Speaker of the House Representative Ben Toma.

Governor Hobbs, Valley Metro and several lawmakers applaud the passage as it will save jobs and help the state's largest city keep up growing population demands.

Phoenix Mayor Kate Gallego is also in agreement with that but added her disapproval of some of the contingencies, saying in part through a statement:

"While it's exciting that we've advanced proposition 400, I remain disappointed that this critical legislation was coupled with an effort to cut revenue to cities, including Phoenix, as soon as in the next budget year. As such, I cannot and will not support any action that would take away the power of cities to levy a residential rental tax, as this revenue is how we fund public safety hiring, improvements to parks and preserves, and neighborhood public safety grants."

Voters in Maricopa County will get their say on Prop 400 in the November 2024 election.