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Arizona Republicans pass Proposition 400 extension, sent to Governor Hobbs for signature

The Prop 400 sales tax extension will fund transportation projects in Maricopa County for the next 20 years
Arizona State Capitol.jpg
Posted at 8:11 AM, Jun 14, 2023
and last updated 2023-06-14 12:21:18-04

PHOENIX — Senate Republicans are moving forward with their Proposition 400 extension plan outlined in Senate Bill 1246.

On Tuesday night, Republicans in the legislature passed a partisan half-cent sales tax extension, which Democrats oppose and the governor promised she'll veto.

The Prop 400 sales tax extension will fund transportation projects in Maricopa County for the next 20 years. Voters need to approve the tax, but the legislature must first decide how the money is spent.

Over the weekend, Governor Katie Hobbs thought she was close to an agreement with Republicans.

The two sides could not agree on funding for light rail and on Tuesday, Republicans moved on their plan.

Governor Katie Hobbs released a statement after the passing of the Prop 400 bill:

“From day one, I promised I would be laser-focused on growing our economy and bringing high-paying jobs to our state for Arizona workers. Republican leadership’s partisan bill does neither of those things, and will be vetoed when it reaches my desk. Now, it’s time for legislators to vote on a compromise that is supported by a bipartisan majority in both chambers, business and labor leaders, and Maricopa County cities. It’s time for Republican leadership to stop playing partisan games, put the bipartisan compromise up for a vote, and stop holding our state’s economic potential hostage.”

"Today’s partisan bill jeopardizes critical federal funding, fails to properly fund public transit, and includes unrelated, partisan amendments," she added.

The Republican plan asks voters to spend about 85% of the additional sales tax collected in Maricopa County on freeways, arterial roadways and capital costs for public transportation excluding light rail. Voters will also be asked to drop the remaining 15% of the additional sales tax for public transportation, including light rail.

Governor Hobbs said it is time for Republican leaders to quit playing games and put the bipartisan agreement up for a vote. Mayors from six of the Valley's largest cities issued a statement saying they are unalterably opposed to the Republican plan. 

"If no solution is reached, we will have no choice but to pursue another avenue to get this before voters in 2024," the mayors promised.

Both Chambers have recessed until July 31st. A veto doesn't necessarily kill the bill. An agreement could be worked during the recess and lawmakers could vote again.