Legislation is in the works to extend an extra half-cent sales tax that has funded major expansions of Maricopa County’s highways and public transportation systems over the past few decades. 

Maricopa County voters first approved the tax in 1985 and approved Proposition 400 in 2004, extending it for another 20 years.  

With the sunset date coming in 2024, the Maricopa Association of Governments is gearing up to push lawmakers in 2022 to authorize a public vote on whether Maricopa County voters want to extend the tax, said MAG Executive Director Eric Anderson. MAG is comprised of mayors from 27 cities and towns, and officeholders from three Indian nations, Maricopa County and parts of Pinal County.  

According to Arizona law, 56.2% of the money collected by the sales tax is used for freeways and state highways in Maricopa County, 10.5% goes to improving arterial streets and the remaining third is used for public transportation. 

It has been a major source of funding for major freeway projects. The original tax and the renewal helped to finance construction of state Route 51 and loops 101, 202 and 303, including the recently completed South Mountain Freeway extension of 202 – as well as helping to pay for the Phoenix area’s bus system and the light rail. The Prop. 400 annual report shows that revenue from the proposition increased every year since 2010. 

“It’s a significant source of funding,” Anderson said of the tax. “Right now, we’re collecting around $600 million a year. 

It is projected the tax will raise an additional $19 billion over the next 20 years if reauthorized, Anderson said. He said there are plans to use the money on “a variety of transportation projects” over the next 20 years, including improving and expanding both the highway system and arterial streets and public transportation and safety projects for bicyclists and pedestrians. 

One of these projects is a new highway in the Southwest Valley, being called state Route 30, which would roughly parallel I-10 for about five miles out to state Route 85 and hopefully relieve congestion on I-10.  

The money would also be used to expand bus service by improving existing routes and adding new ones. Anderson said there are plans for bus rapid transit, which he said is “kind of like light rail, but a bus in its own corridor. He noted that the Northwest Valley and East Valley are not well served now. 

“There really is a need pretty much in some of these outlying areas as they’ve grown,” he said. 

MAG has been laying the groundwork for this expansion, hiring WestGroup Research to poll about 1,000 likely voters on the issue early this year. According to their results, 64% of respondents supported extending the tax.  

MAG’s regional council plans to vote on its new long-range transportation plan on December 1, and the group is reaching out to legislative leaders and others now to make their case to extend the tax. Anderson said he hopes the proposal doesn’t run into serious opposition. 

“I think transportation, it used to be a bipartisan issue,” Anderson said. “I’ll leave that description for others these days. … Transportation improvements and expanding our capacity is key to improving our economic development here in the Valley.” 

Anderson said he has been talking to Gov. Doug Ducey’s staff about the renewal, but he isn’t sure yet what Ducey’s stance on it is.  

“I suspect – we’re extending the existing tax, we’re not raising the rate at all, and I expect they’ll be on board. But the political side of things, you just don’t know.” 

Although Ducey has pledged to never raise taxes, he did sign in 2018 an extension of Proposition 301, a 2000 voter-approved a sales tax dedicated to funding education in the state. 

Ducey spokesman C.J. Karamargin said the goveror’s office does not comment on pending legislation.  

House Majority Leader Ben Toma, R-Peoria, said the proposal is being worked on through the House Transportation Committee. He said he hasn’t seen the final version yet. 

“The details matter in this case, and this details in particular are what are the changes to the current version,” Toma said. “That is going to matter quite a bit.” 

Sen. T.J. Shope, R-Coolidge, said there is enough money available to make an infrastructure-heavy bill with funding for rural projects.  

“I look forward to working on it and trying to get it across the finish line,” said Shope, who is the vice chairman of the Senate Transportation and Technology Committee.  

Shope said he thinks the committee’s chairman – Sen. Tyler Pace, R-Mesa – will support the bill. Pace didn’t respond to a request for comment by press time, and neither did House Transportation Chairman Rep. Frank Carroll, R-Sun City West.  

Sen. Paul Boyer, R-Glendale, who is on the Transportation Committee, said he understands transportation is critical due to Arizona’s rapid growth, but he wants to know more about the proposed extension and the tax before deciding how he will vote. 

“I’d like to see the language,” he said. “I know we voted on it years ago, but it’s only (just) been brought to my attention.” 

Anderson said important economic development projects such as the Taiwan Semiconductor Manufacturing plant being built in Phoenix would not have happened without the money that has been spent on highways like Loop 303, which was funded by the tax. 

“I think most of our policymakers get that,” he said.