2026-2027; revenue

This bill establishes a fee collection system for Arizona counties, cities, towns, councils of governments, and regional transportation authorities to fund the state's integrated tax system modernization project. The Department of Revenue will assess these fees annually based on the amount of state shared revenue each local entity receives, with a total annual cap of $6,286,300 for the 2026-2027 fiscal year. If a local government fails to pay the assessed fee by December 31, the state will withhold future state revenue distributions until the debt is cleared. All collected fees and related transfers will be placed into a dedicated fund used solely to cover the administrative and operational costs of updating the tax system.