Issue 14 - April 11, 2014

Legislative Overview

The budget process has come to an end as the House and Senate came together this week in Conference Committee to adopt compromise provisions to the budget for fiscal year 2014-15 (FY 15). With few exceptions, the budget passed both chambers along party lines. The budget was transmitted to the Governor along with three bills that have revenue impacts; SB 1413, SB 1484 and HB 2377. The entire package was sent to the Governor on Wednesday, and although the Executive has yet to act, the Legislature expects her to sign the budget as presented. A document prepared by the Joint Legislative Budget Committee detailing the final budget can be found here.

If the Governor does indeed sign the budget into law, lawmakers will likely complete their labors and seek to adjourn sine die next week.

Utility Tax Exemptions

This week, SB 1413 (taxes; manufacturers' electricity sales; exemption) passed out of the House by a vote of 51-3 and was subsequently passed by the Senate on a final read vote of 27-0. Sponsored by Senator Steve Yarbrough (R-Chandler), SB 1413 exempts electricity and gas used in manufacturing and smelting operations from state transaction privilege taxes (TPT) and stipulates that if a city or town wishes to provide a similar exemption it must be provided to all manufacturers and must have the same definitions as the state. The League is neutral on the bill.

State Parks Funding

SB 1326 (state parks; donations; fund; transportation) passed the House Committee of the Whole this week by a voice vote. Sponsored by Sen. Don Shooter (R-Yuma) the bill now has the Department of Revenue collecting money for the state park fund via a voluntary check-off on an individual's tax return, if they are entitled to a refund. Individuals may also make an additional donation beyond the portion coming out of their return. Prior versions of the bill had the Department of Transportation collecting donations when a vehicle was registered. The fund will be used for the maintenance and operation of state parks. SB 1326 now proceeds to Third Read. The League is in support of the measure.

Other Bills of Note

(All bills being actively monitored by the League can be found here.)

Bill Number - Short Title - Subject(s)
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