Governor Hobbs signs Maricopa County jail excise tax bill ahead of 2026 voter approval

The Maricopa County Board of Supervisors held an informal meeting on May 19, 2025, focusing on key legislative updates and financial implications for the county. A significant topic of discussion was the jail excise tax bill, which has recently been signed by Governor Hobbs. This marks the initial step in the process to renew the county's jail excise tax, which is set to be presented to voters for approval in 2026. The tax is projected to generate approximately $288 million in revenue for fiscal year 2026, accounting for 7.29% of the county's total revenue.

During the meeting, board members expressed gratitude for the collaborative efforts that led to the successful passage of the legislation. Supervisor Lesko emphasized the importance of understanding the potential consequences if the tax is not renewed, noting that the jail excise tax contributes around $300 million annually to public safety funding. Without this revenue, the county would likely face a property tax increase to compensate for the lost funds.

The board also discussed the history of the jail excise tax, which has been in effect since the 1990s, with a proposed extension of 20 years. Additionally, the meeting addressed the Altex mandated payment, which remains pending until the state finalizes its budget.

Further legislative matters included two bills concerning business personal property tax exemptions. One bill proposes the complete elimination of locally assessed business personal property tax, while the other seeks to raise the exemption limit to $500,000. Both proposals could significantly impact the county's property tax revenue, although they are currently not advancing in the legislative process.

Lastly, the board reviewed a bill aimed at reducing the state's sales tax rate from 5% to 4.93%. This change could result in a loss of approximately $10.9 million in state-shared sales tax revenue, along with an additional $3.9 million impact on the jail excise tax revenue, raising concerns among board members about the potential effects on county finances.

In conclusion, the meeting highlighted the critical role of the jail excise tax in funding public safety and the collaborative efforts of county officials to secure its renewal. The board will continue to monitor legislative developments that could affect the county's financial landscape.