HB 2461 creates a new 1% surcharge on payroll taxes for Arizona businesses employing 50 or more workers, starting in 2027. The surcharge applies to all business types (including corporations and "small business taxpayers" as defined) and funds a dedicated Community College Apprenticeship and Workforce Development Program Fund. Monies collected will be deposited into this fund to support community college workforce training programs. The bill directly affects businesses with 50+ employees across Arizona, with no changes to existing tax structures beyond this new surcharge.
HB 2427 requires Arizona's state land department to implement 51 specific recommendations from an auditor general's 2025 performance audit within two years. The bill mandates monthly progress meetings with the auditor general, a public checklist tracking completion, and quarterly updates to legislative committees, the governor, and oversight chairs. If the department fails to comply within the deadline, the auditor general must notify key officials and request a special committee meeting to address the issue. The law expires December 31, 2028, and aims to ensure proper management of state trust lands and their beneficiaries.
HB 2626 creates a state-funded scholarship program for child care workers in Arizona earning below 85% of the state median income. It directly affects teachers, educators, and support staff at department-contracted child care providers, preschools, kindergartens, and K-12 schools. The program provides $200 million in state funding for fiscal year 2026-2027, with scholarship money paid directly to child care providers (not individual workers) on a first-come, first-served basis. This aims to support workforce retention by covering costs for eligible providers.
HB 2292 adjusts Arizona's fire insurance tax rates, charging 0.66% for properties in cities/towns certified by the state fire marshal as using private fire companies (down from 2.2% for other areas). It directs 85% of the fire insurance tax revenue to local fire districts based on their firefighter composition (volunteer vs. paid), with the funds allocated to public safety retirement systems. Starting in fiscal year 2026-2027, $20 million annually from the total fire insurance tax will be distributed to a dedicated wildfire prevention authority fund. The bill affects insurers through revised tax reporting and payment schedules, and directly supports fire districts and wildfire prevention efforts.
HCR 2017 is a proposed constitutional amendment that would create a new property tax exemption for Arizona residents aged 62 or older who own their primary residence without a mortgage and have lived there as their main home for at least two years. If approved by voters, this exemption would apply to tax years beginning after December 31, 2026. The amendment would specifically affect seniors meeting these criteria by eliminating property tax liability on their primary residence. This proposal requires voter approval and is not yet law, as it is currently in the early legislative review stages.
SB 1332 prohibits Arizona from providing state funding or financial support for new light rail construction projects. It requires the state transportation department to conduct a feasibility study by December 2027, comparing light rail costs, environmental impact, ridership, and maintenance against alternatives like autonomous vehicles and bus systems in Maricopa County. The study must be submitted to state leaders and Phoenix officials, with findings informing future state involvement decisions. The bill expires on June 30, 2028, making it a temporary measure to evaluate transit options before potential future funding.
HB 2290 clarifies where Arizona collects sales tax on tangible personal property sales, primarily affecting online retailers and car-sharing companies. It specifies that sales tax applies based on where the seller *receives the order* (not where the customer lives or where the order is processed), requiring out-of-state sellers to collect tax if orders are received at a business location in Arizona. For car-sharing services, tax is determined by the vehicle's registration location or the owner's Arizona address during use. This changes how businesses calculate tax liability for physical goods sold to Arizona customers, particularly impacting e-commerce and shared vehicle transactions.
SCR 1028 is a proposed constitutional amendment (not a regular bill) that would require a two-thirds vote in both Arizona legislative chambers to pass any law increasing state revenues. It defines "revenue increases" to include new taxes, higher tax rates, fee hikes, or changes to tax deductions/exemptions, while excluding effects like inflation. If approved by voters, it would change the process for future revenue-raising measures, requiring supermajority approval instead of a simple majority. The amendment is now scheduled for voter approval at the next general election.
HB 2242 appropriates $175 million from Arizona's state general fund for safety and capacity improvements to State Route 260 between mileposts 200 and 346, directly affecting drivers, emergency responders, and wildlife in that corridor. The funds will specifically widen roads to four lanes where feasible ($95M), expand shoulders to five feet with modern guardrails ($35M), install wildlife mitigation systems ($25M), and upgrade drainage/slope stabilization ($20M). The Arizona Department of Transportation must prioritize projects using crash data, traffic volume, and safety needs, then submit annual public reports and maintain a project dashboard. The funding is exempt from standard appropriation lapsing rules until June 2036, after which the bill expires.
HB 2403 allocates $7.5 million annually from Arizona's state general fund for four fiscal years (2026-2027 through 2029-2030) to increase payments to home and community-based service providers under Arizona's Medicaid program (AHCCCS). This funding directly supports providers who serve elderly Arizonans and individuals with physical disabilities, enabling them to offer services like in-home care and support. The bill specifically targets higher reimbursement rates for these providers, ensuring they receive additional state funding for eligible services. It is a budgetary measure with no policy changes beyond the specified funding allocation.
