Governor Hobbs signs Maricopa County jail excise tax bill for 2026 voter approval

The Maricopa County Board of Supervisors held an informal meeting on May 19, 2025, where they discussed significant developments regarding the jail excise tax, which has recently been signed into law by Governor Hobbs. This legislation marks the first step in renewing the county's jail excise tax, which is set to be presented to voters for approval in 2026. The tax is projected to generate approximately $288 million in revenue for the fiscal year 2026, accounting for 7.29% of the county's total revenue.

During the meeting, board members expressed pride in the collaborative effort that led to the successful passage of the bill. Supervisor Lesko emphasized the importance of understanding the potential consequences if the tax is not renewed, noting that it currently brings in around $300 million annually. Without this funding, the county would face the necessity of increasing property taxes to cover jail operations.

The board also discussed the history of the jail excise tax, which has been in effect since the 1990s, and they are seeking a 20-year extension. Additionally, the meeting touched on other legislative matters, including two bills concerning business personal property tax exemptions, which could significantly impact the county's property tax revenue. Although these bills are currently stalled, they may resurface during budget discussions.

Another topic of concern was a proposed reduction in the state's sales tax rate from 5% to 4.93%, which could result in a loss of approximately $10.9 million in state-shared sales tax revenue for the county. The jail excise tax is linked to the state's sales tax rate, meaning this change could further affect county revenues.

In conclusion, the discussions highlighted the critical role of the jail excise tax in funding public safety services beyond just jail facilities, including probation and correctional health services. The board's collaborative efforts and proactive approach aim to secure essential funding for the county's future.