ARIZONA HOUSE OF REPRESENTATIVES

HB 2019: highway safety fee; repeal; VLT..

PRIME SPONSOR: Representative Lawrence, LD 23

BILL STATUS: Transportation

Overview

Repeals both the highway safety fee and changes to the separate classification of vehicle license tax (VLT) for alternative fuel vehicles that becomes effective January 1, 2020.

History

Law 2018, Chapter 265 § 1 established the highway safety fee. At the time of registration each year of a vehicle, the registering officer is required to collect a highway safety fee in an amount to be determined each fiscal year by the Director of the Arizona Department of Transportation (ADOT). The Director must deposit all monies collected from the highway safety fee in the Arizona Highway Patrol Fund. The highway safety fee is required to fully fund 110% of the Arizona Department of Public Safety (ADPS) highway patrol budget each fiscal year, less any prior unencumbered balance in the Arizona Highway Patrol Fund that exceeds 10% of the prior year's deposit of highway safety fee monies (A.R. S. § 28-2007). Currently, ADOT has set the highway safety fee at $32 per vehicle, per year.

Pursuant to A.R.S. § 28-5805, a separate classification of VLT is established for alternative fuel vehicles. At the time of registration of alternative fuel vehicles, the VLT is $4 for each $100 dollar of the assessed value of the vehicle. The assessed value of the vehicle for the first year is 1% of the manufacturer's base retail price of the vehicle. For each succeeding year, the assessed value of the vehicle is 15% less than the value of the preceding year. The minimum VLT for alternative fuel vehicles is $5.

Laws 2018, Chapter 265 § 2 established changes to the separate classification of VLT for alternative fuel vehicles effective on January 1, 2020. Under this act, the VLT for alternative fuel vehicles purchased before January 1, 2020 is required to be set by the Director of ADOT as a percentage of the value of the manufacturer's base retail price of the vehicle. For each succeeding year, the value is 15% less the value in the preceding year. The initial VLT for alternative fuel vehicles with a gross weight under 10,000 pounds that are purchased on or after January 1, 2020 is 30% of the manufacturer's base retail price of the vehicle. For each succeeding year, the value of the vehicle is 15% less the value in the preceding year. The separate VLT classification is eliminated for alternative fuel vehicles with a gross weight of over 10,000 pounds for vehicles purchased on or after January 1, 2020.

Provisions

1. Repeals the highway safety fee. (Sec. 1)

2. Repeals the changes to the separate classification of VLT for alternative fuel vehicles that becomes effective on January 1, 2020. (Sec. 1)

3. Makes conforming changes. (Sec. 2-3)

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7. Fifty-fourth Legislature                       HB 2019

8. First Regular Session                            Version 1: Transportation

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