Arizona Gov. Katie Hobbs signs bill to put Prop 400 Valley transportation tax on ballot

PHOENIX — Arizona Gov. Katie Hobbs signed a bill Tuesday that puts the Prop 400 transportation tax extension up for vote in Maricopa County.

The signing comes a day after the Republican-led Legislature passed SB1102 following a prolonged battle over the details of the ballot measure. Hobbs vetoed a previous version passed earlier in the legislative session, which ended Monday.

“Today, we showed we can put politics aside and work across party lines to get big things done for Arizona. I’m proud to sign this bill into law that will create hundreds of thousands of jobs, build and attract businesses, and help make Arizona the best place to work, live and raise a family,” Hobbs said in a statement.

“With support spanning across political parties, businesses, workers and everyday Arizonans, Prop 400 will secure our economic future and give every Arizonan an opportunity to succeed in our thriving economy.”

Prop 400 is a half-cent sales tax to fund transportation in metro Phoenix originally approved by Maricopa County voters in 1985 and extended in 2004.

SB1102 puts another 20-year extension on the ballot in 2024. Recent polling shows a majority of Maricopa County voters in both parties supports the transportation tax.

Hobbs also signed a bill Tuesday to ban rental taxes, reportedly as a concession to get the Prop 400 bill over the finish line. The Democratic governor vetoed a rental tax ban earlier in the session.

“Charging a rental tax is bad tax policy,” Senate President Warren Petersen said in statement. “In fact, Arizona is one of only two states in the nation currently allowing this.

“While our first attempt at eliminating the tax passed out of the Legislature with solely Republican support and was eventually vetoed by the governor, we’re grateful our Democrat colleagues came to the table with us and realized the real, tangible relief this reform will provide.”

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