Arizona budget calls for higher fees on businesses, consumers

 

Mike Sunnucks

Tuesday, July 1, 2008

Arizona businesses and consumers could face higher state fees for government permits and services under the $9.9 billion state budget approved the Legislature and signed by Gov. Janet Napolitano last week.

The budget deal allows six state agencies to add $11 million in new and higher fees without going through the usual state rulemaking processes: Arizona Department of Environmental Quality, Department of Public Safety, Department of Health Services, Land Department, Radiation Regulatory Agency and Department of Weights & Measures.

The budget also increases the state surcharge for defensive driving classes by $45 and allows various court systems to boost fees, said Kevin McCarthy, president of the Arizona Tax Research Association.

The state budget deal also gives special taxing districts at the local level more leeway to raise taxes and will put cameras on state highways to catch speeders.

The state needed to close a $2 billion deficit in this year's budget and is using higher fees, debt financing, financial maneuvers and some spending cuts to resolve that gap.