Regional Area Road Fund (RARF)

In November 2004, the voters of Maricopa County approved the extension of the levy of the Maricopa County Transportation Excise Tax for 20 years, ending Dec. 31, 2025. Often referred to as the "half-cent sales tax," the tax is levied upon business activities in Maricopa County, including retail sales, contracting, utilities, rental of real and personal property, restaurant and bar receipts, and other activities.

The tax revenues are collected by the Arizona Department of Revenue and are transferred monthly to the state treasurer. The state treasurer is required to deposit the collections from the tax as follows:

• 66.7 percent goes into the Maricopa County Regional Area Road Fund (RARF) consisting of
  • 56.2 percent for freeways and routes on the state highway system, including design, right of way, construction, maintenance and debt service for projects included in the Regional Transportation Plan for Maricopa County.
  • 10.5 percent to the Maricopa County RARF for major arterial streets and intersection improvements, including debt service, capital expense and implementation studies.
• 33.3 percent goes to a public-transportation fund to be used solely for capital costs, maintenance and operation of public transportation classifications along with capital costs and utility relocation costs associated with a light-rail public-transit system.

In November 2024, the voters of Maricopa County approved the extension of the levy of the Maricopa County Transportation Excise Tax for an additional 20 years under Proposition 479, beginning January 1, 2026 and ending Dec. 31, 2045.

Per Arizona Revised Statutes 42-6105.01,D, the Prop 479 transportation excise tax extension will be distributed as follows:

• 40.5 percent to the Regional Area Road (RARF) fund for freeways and other routes in the state highway systems, including capital expenses.
• 22.5 percent to the RARF fund for major arterial streets, intersection improvements and regional transportation infrastructure including capital expenses and implementation studies.
• 37 percent to the Public Transportation Fund for:
  1. Capital costs, maintenance and operation of public transportation classifications.
  2. Capital rehabilitation costs associated with the light rail system.

ADOT administers the RARF, and the Maricopa County Regional Public Transportation Authority is responsible for administering the public-transportation fund.

Reports

Additional Information

• Transportation Excise Tax Revenue Bonds

The above audits and reports are the most current releases on their subjects and are prepared by ADOT's Office of Financial Management Services (FMS). The information and any expressions of opinion herein are subject to change without notice, and the posting of information on this website does not imply that there has been no change in the affairs of ADOT since the date of the document. For historical information, view the Archived Audits and Reports.