Lawmakers Face Crucial Decision: Should Jail Tax Vote Move Forward?

Maricopa County officials are advocating for state lawmakers to enable voters to decide on the extension of a nearly 30-year-old half-cent sales tax that finances jail operations in the upcoming election.

The jail excise tax, set to expire in 2027, mirrors the recently renewed transportation excise tax. Approval from the Legislature is necessary to add the jail tax renewal to the ballot. Without legislative backing, the county cannot pursue this crucial funding mechanism.

In a recommendation by the county’s Public Safety Funding Committee, the Board of Supervisors is encouraged to aim for a 20-year extension of the tax at its current rate of one-fifth of one cent.

“The Jail Excise Tax generates approximately $300 million annually, significantly contributing to our public safety needs without overburdening taxpayers,” stated Supervisor Clint Hickman in a December 16 news release. He affirmed the committee’s advice, emphasizing its importance for community safety and economic well-being.

Initially approved by voters in 1998 and extended in 2002, the tax’s future now hinges on legislative action, either in the upcoming session or by 2026.

The tax has yielded over $3.6 billion for jail funding since its inception, with more than 40% of the county’s detention budget derived from it. In 2023 alone, the jail tax contributed $270 million in revenue.

During a recent Board of Supervisors meeting, Hickman noted his efforts to remind lawmakers of the tax’s essential nature over the past decade, underscoring its significance for fiscal responsibility.

“It’s crucial for our fiscally conservative board to ensure the Legislature understands what lies ahead,” he remarked, expressing hope for proactive engagement from lawmakers.

As of now, Republican leaders in the House have not responded regarding plans to advance the extension measure in the upcoming session. An extension would also necessitate support from Governor Katie Hobbs, who has previously clashed with Republicans over funding priorities.

Unique among Arizona counties, Maricopa must obtain legislative approval for any sales tax ballot measures.

“Renewing the tax at its current rate is a practical approach for ensuring steady funding for critical public safety requirements,” asserted Supervisor Bill Gates.

A recent report from Rounds Consulting Group warned that failing to extend the jail tax could lead to increased local taxes and a decline in public safety. Various options exist for offsetting revenue loss, yet higher property taxes or service fees are undesirable for the predominantly Republican Board of Supervisors.

Alternatively, creating a special taxing district is another possibility. However, Rounds warns that such districts are complex and can result in uneven financial impacts on residents.

House Minority Leader Oscar De Los Santos, a Democrat, expressed support for placing the jail tax extension before voters, highlighting the bipartisan interest in addressing this critical funding issue.