The fees counties, cities, towns and certain regional bodies pay toward the Arizona Department of Revenue's tax system modernization project, along with related transfers from 2 state tax sources, now run through June 30, 2030 instead of June 30, 2028, and the Legislature states its intent to cap the 2026-2027 amounts.
Official title: revenue; 2026-2027
- September 12, 2026
- Fees and transfers for the tax system project run through June 30, 2030: Local government fees and the transfers to the integrated tax system project fund
- Section 42-1009 repealed after December 31, 2031: Section 42-1009, added by Laws 2022, chapter 321
What changes
BeforeThe Department of Revenue assessed and collected fees from counties, cities, towns, councils of governments and certain regional transportation authorities for its integrated tax system modernization project through June 30, 2028.
NowThese fees continue through June 30, 2030.
BeforeThe fee applied to councils of governments that receive revenues under one state law (section 42-6105).
NowThe fee also applies to councils of governments that receive revenues under section 42-6105.01, and unpaid amounts can be withheld from those distributions too.
BeforeTransfers to the project fund from the education sales tax monies and from the tax under section 42-5452 were allowed through June 30, 2028.
NowThese transfers continue through June 30, 2030. The amount from the education sales tax monies "shall be transferred" to the project fund, as determined by the department's director.
BeforeSection 42-1009, added by a 2022 law, was set to be repealed after December 31, 2029.
NowThat section is now set to be repealed after December 31, 2031.
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NowFor fiscal year 2026-2027, the Legislature states its intent that total fees on all local governments covered not exceed $1,273,800, shared among counties, cities and towns, councils of governments and regional transportation authorities based on what each group received in state distributions 2 years earlier. It also states its intent that the education sales tax transfer not exceed $154,500 and the section 42-5452 tax transfer not exceed $34,400.
Who it affects
- Counties, cities and towns that receive state shared revenues
- Councils of governments
- Regional transportation authorities in counties with more than 800,000 people
- Arizona Department of Revenue
- State treasurer
What you need to do
Nothing.
What the law doesn't answer
- What section 42-1009 does or covers
- How much any single county, city, town or other body will pay
- Fee and transfer limits for fiscal years after 2026-2027
- The total cost or expected completion date of the tax system modernization project
- Why the end date was extended
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.