Gov. Hobbs to veto transportation sales tax proposal passed by Republicans

PHOENIX (3TV/CBS 5) -- Governor Katie Hobbs says she will veto a proposition to extend a decades-old sales tax that funds transportation projects in Maricopa County. On Tuesday evening, Senate Republicans outlined the proposal for Proposition 400 and passed it in the Legislature with majority support. However, the governor said the bill will be struck down once it hits her desk.

Hobbs released a statement about the proposal, telling Republican leaders to “stop holding our state’s economic potential hostage.”

The half-cent sales tax has been in place since 1985, and voters approved its extension for 20 years, which is now set to expire on Dec. 31, 2025. Gov. Hobbs recently unveiled a plan where 40% of the tax revenue would go to freeways, 22% for arterial roads, and 38% for transit projects like buses. She is only setting aside 3.5% for maintaining the light rail. However, Republicans’ plans are different than the governor’s. Republicans want to lower the half-cent sales tax, increase freeway allocation to 46% and prohibit light rail expansion.

Voters first approved Prop. 400 in 1985. The half-cent sales tax paid for major freeway projects like Loop 101, 202 and 303.

The Arizona Freedom Caucus says their project would have cut sales tax for voters by over $3 billion and prioritized building freeways and roads while cutting down commute times and traffic congestion. GOP officials are also against expanding the light rail system, claiming it “has been a failure since the day they laid the first tracks.”

See a spelling or grammar error in our story? Please click here to report it and include the headline of the story in your email.

Do you have a photo or video of a breaking news story? Send it to us here with a brief description

Copyright 2023 KTVK/KPHO. All rights reserved.