revenue; 2025-2026

HB 2959 requires counties, cities, towns, regional planning groups, and transportation authorities in large counties to pay annual fees (capped at $6.56 million for 2025-2026) to fund Arizona’s state tax system modernization project. These fees, assessed by October 31 each year and due by December 31, are collected from entities receiving state shared revenues and withheld from future payments if unpaid. All collected fees and transfers from specific tax funds are deposited into a dedicated "integrated tax system project fund" managed by the Department of Revenue. The fund covers administrative and operational costs for upgrading the state’s tax system, with fee amounts calculated based on historical revenue distributions.