The proposed bill would amend current statutes regarding the distribution of state prime contracting transaction privilege tax (TPT) revenues to cities, towns, and counties for public infrastructure improvements related to manufacturing facilities. It would increase the aggregate cap on these distributions from $200,000,000 to $300,000,000, retroactive to July 1, 2026. Additionally, the bill would raise the minimum capital investment required for a manufacturing facility to qualify for these distributions, setting it at $3 billion for counties with populations over 800,000 and $100 million for those with fewer than 800,000. The bill also modifies the funding apportionment, decreasing the percentage of TPT revenues that must be paid to cities, towns, or counties from eighty percent to seventy-five percent. Furthermore, the definition of "public infrastructure" would be expanded to include wastewater reclamation, recycling, treatment, and storage facilities. The bill would also require participating cities, towns, or counties to contribute at least five percent of the funding for public infrastructure improvements. New provisions would mandate that the Arizona Department of Revenue (ADOR) provide an analysis of anticipated revenues from the manufacturing facility to the Arizona Commerce Authority and post relevant agreements on its website. Lastly, the bill includes a mechanism for retaining excess funds that exceed the maximum distribution limit for future fiscal years.

Statutes affected:
Introduced Version: 42-5032.02
House Engrossed Version: 42-5032.02