Remember the new sales tax that Maricopa City Council approved this spring? The one meant to save State Route 347 drivers from pavement purgatory? Here’s your reminder that it goes into effect tomorrow.

Dubbed the Commuting Corridors Sales Tax Fund, the new levy increases the municipal sales tax from 2% to 2½% to help fund badly needed SR 347 improvements.

Mayor Nancy Smith called the tax “a game changer” for the city. 

“Without this local investment, the widening of SR 347 simply wouldn’t be possible,” she said yesterday. 

That’s true, considering other attempts to fundraise for the improvements failed in recent years and the Arizona State Transportation Board seriously hesitated before including the state highway on its five-year construction plan.

Councilmember Eric Goettl, who has gone on record in the past with his own hesitancy, ultimately agreed the tax was necessary.

“Even with all the work we have done, one fact remained: The State of Arizona simply lacks the funding for the SR 347 project,” he told InMaricopa. “This was the best solution I could find as it helps spread the burden of the tax to others who live outside of our city, who shop here and who also travel up and down SR 347.”

How does the new tax work? 

The sales tax applies broadly, covering most transactions such as restaurant dining, retail purchases and many services. 

Construction and contracting services will also see a half-percent increase, rising from 3½% to 4%. That charge alone is projected to account for about 40% of the new annual revenue.  

A full list of taxable sales can be found on the Arizona Department of Revenue’s website. 

Taxpayers do catch a break in a few key areas: gas, groceries and lodging remain exempt. 

How much will the city collect and where will it go? 

The city estimates it will generate $5 million by June 30 and at least $8 million annually through 2045, when the tax expires.  

Funds will be collected by the AZDOR, deposited into the city’s general fund and then transferred into the dedicated sales tax fund. 

While the primary focus is long-overdue improvements to SR 347, a share of the revenue will also support other roadway projects. These include future upgrades to State Route 238, the extension of Sonoran Desert Parkway and construction of the Green Road Loop to ease congestion along the city’s main corridor. 

According to the city, these investments will help ensure “travel in our region is smoother, safer, and more reliable for everyone.”