Assigned to TRANSIT FOR
COMMITTEE
Assigned to TRANSIT FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
vehicle fees; alternative fuel VLT.
Purpose
Removes the vehicle licensing tax (VLT) calculation classification for alternative fuel vehicles and requires an annual highway safety fee for registered vehicles to fund highway patrol.
Background
VLT
A VLT is constitutionally required for each year of a vehicle's registration (Ariz. Const. art. 9, § 11). The VLT decreases with the age of the vehicle and a minimum VLT for a gasoline-powered vehicle is $10 per year (A.R.S. Title 28, Chapter 16, Art. 3).
A vehicle powered by electricity, solar energy, alcohol fuel, certain approved gasses or certain fuel blends is classified as an alternative fuel vehicle for purposes of calculating VLT. For an alternative fuel vehicle, the VLT is $4 for each $100 of the vehicle's value, which is calculated as 1 percent of the manufacturer's base retail price, decreasing by 15 percent each year. The minimum VLT for alternative fuel vehicles is $5 per year (A.R.S. §§ 1-215 and 28-5805).
Monies collected from VLT are distributed to various sources, including the Highway User Revenue Fund (HURF), each county's general fund, municipality funds and to counties for transportation purposes (A.R.S. § 28-5808).
Highway Patrol
The Highway Patrol Division of the Arizona Department of Public Safety (DPS) is charged with patrolling the highways of the state, both day and night, and enforcing the laws of Arizona (A.R.S. § 41-1743). The Highway Patrol Division is funded by the Arizona Highway Patrol Fund, which statutorily consists of the following funding sources: 1) HURF monies appropriated by the Legislature; 2) miscellaneous service fees; 3) rewards; 4) awards; 5) insurance recoveries; 6) monies derived from the sale or disposal of highway patrol property; 7) excess monies collected from insurance premiums for the Public Safety Retirement System Highway Patrol Account; and 8) administrative charges collected for vehicles that were removed, immobilized or impounded and stored by DPS (A.R.S. § 41-1752).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Eliminates the separate classification for alternative fuel vehicles for VLT calculation purposes.
2. Requires the registering officer to collect a highway safety fee in an amount annually set by the Director of the Arizona Department of Transportation to be deposited into the DPS Highway Patrol Fund.
3. Requires the highway safety fee to fully fund 110 percent of the highway patrol budget for each fiscal year, less any prior unencumbered balance exceeding 10 percent of the highway safety fee from the prior year.
4. Removes the requirement that a VLT bill for a gasoline-powered vehicle include the comparable rate if the vehicle was powered by alternative fuel.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
January 26, 2018
KN/lb