ARIZONA
HOUSE OF REPRESENTATIVES
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PRIME SPONSOR: Representative Campbell, LD 1 BILL STATUS: Caucus & COW TRANS: DPA 6-0-0-1 |
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Increases the motor and use fuel taxes and
imposes new taxes on natural gas, propane and electric vehicles.
History
Pursuant to A.R.S. § 28-5606, a tax of 18 cents per gallon is imposed on motor vehicle fuel possessed, used or consumed in Arizona. Additionally, a tax is imposed on use fuel to partially compensate Arizona for the use of its highways, except that there is no use fuel tax on alternative fuels. For use fuel that is used in the propulsion of a light class motor vehicle on a highway in Arizona, the tax imposed is 18 cents per gallon. For use fuel that is used in the propulsion of a use class motor vehicle on a highway in Arizona, the tax imposed is 26 cents per gallon. Through December 31, 2024, a nine cent per gallon tax is imposed on use fuel used in the propulsion of a motor vehicle transporting forest products in compliance with statutory requirements on a highway in Arizona.
A.R.S. § 28-6501 requires monies collected from the motor and use fuel tax be deposited in the Highway User Revenues Fund (HURF). After initial distributions, the Arizona Department of Transportation is required to allocate, and the State Treasurer is required to distribute monies in HURF as follows: 1) 50.5% to the State Highway Fund; 2) 9% to counties; 3) 27.5% to incorporated cities and towns; and 4) 3% to incorporated cities with a population of 300,000 or more persons (A.R.S. § 28-6538).
Motor and Use Fuel (Sec. 1)
a. For FY 2020, 28 cents per gallon;
b. For FY 2021, 38 cents per gallon;
c. For FY 2022, 43 cents per gallon; and
d. For FY 2023 and each FY thereafter, 43 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
2. Increases the use fuel tax for use class motor vehicles from 26 cents per gallon to:
a. For FY 2020, 36 cents per gallon;
b. For FY 2021, 46 cents per gallon;
c. For FY 2022, 51 cents per gallon; and
d. For FY 2023 and each FY thereafter, 51 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
Natural Gas (Sec. 1)
3. Imposes a tax on natural gas used in the propulsion of light class motor vehicles as follows:
a. For FY 2020, 19 cents per gallon;
b. For FY 2021, 25 cents per gallon;
c. For FY 2022, 28 cents per gallon;
d. For FY 2023 and each FY thereafter, 28 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
4. Imposes a tax on natural gas used in the propulsion of use class motor vehicles as follows:
a. For FY 2020, 23 cents per gallon;
b. For FY 2021, 30 cents per gallon;
c. For FY 2022, 33 cents per gallon;
d. For FY 2023 and each FY thereafter, 33 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
Propane (Sec. 1)
5. Imposes a tax on propane used in the propulsion of light class motor vehicles as follows:
a. For FY 2020, 23 cents per gallon;
b. For FY 2021, 30 cents per gallon;
c. For FY 2022, 34 cents per gallon;
d. For FY 2023 and each FY thereafter, 34 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
6. Imposes a tax on propane used in the propulsion of use class motor vehicles as follows:
a. For FY 2020, 30 cents per gallon;
b. For FY 2021, 37 cents per gallon;
c. For FY 2022, 41 cents per gallon;
d. For FY 2023 and each FY year thereafter, 41 cents per gallon as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
Electric and Hybrid Vehicles (Sec. 2)
7. Imposes a tax on vehicles that access a street or highway and that are propelled by electricity as follows:
a. For FY 2020, $130 per year;
b. For FY 2021, $175 per year;
c. For FY 2022, $198 per year;
d. For FY 2023 and each FY thereafter, $198 per year as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
a. For FY 2020, $52 per year;
b. For FY 2021, $70 per year;
c. For FY 2022, $80 per year; and
d. For FY 2023 and each FY thereafter, $80 per year as adjusted to reflect the change in GDP implicit price deflator reported by the US Department of Commerce from January 1, 2019 to December 31 of the prior year.
Miscellaneous (Sec. 3)
9. Contains a Prop. 108 Clause.
Amendments
Committee on Transportation
1. Increases the tax phase-in from three fiscal years to five fiscal years for the following:
a. The increased tax on motor and use fuel;
b. The imposed tax on natural gas for the propulsion of light and use class vehicles;
c. The imposed tax on propane for the propulsion of light and use class vehicles; and
d. The imposed tax on hybrid vehicles.
2. Provides that the tax rate on natural gas is:
a. For light class vehicles, compressed natural gas per gallon equivalent or diesel gallon equivalent; and
b. For use class vehicles, liquefied natural gas per diesel gallon equivalent.
3. Modifies the imposed tax on electric vehicles, to be phased-in over five fiscal years, as follows:
a. For a vehicle that weighs not more than 10,000 pounds, $198 per year;
b. For a vehicle that weighs more than 10,000 pounds but not more than 26,000 pounds, $538 per year;
c. For a vehicle that weighs more than 26,000 pounds but not more than 33,000 pounds, $2887 per year; and
d. For a vehicle that weighs more than 33,000 pounds; $5,500 per year.
Committee on Ways & Means
1. Restores the motor fuel tax and use fuel tax for light class motor vehicles to 18 cents per gallon.
2. Restores the use fuel tax for use class motor vehicles to 26 cents per gallon.
3. Eliminates the three-year phase-in for each imposed tax.
4. Reduces the imposed per gallon tax on the other fuels as follows:
a. For natural gas with light class vehicles, from 28 cents to 12 cents per gallon;
b. For natural gas with use class vehicles, from 33 cents to 17 cents per gallon;
c. For propane with light class vehicles, from 34 cents to 14 cents per gallon; and
d. For propane with use class vehicles, from 41 cents to 23 cents per gallon.
5. Reduces the imposed per year tax on electric and hybrid vehicles as follows:
a. For electric vehicles, from $198 to $83 dollars per year; and
b. For hybrid vehicles, from $80 to $33 dollars per year.
6. Requires ADOT to study the feasibility of converting from a flat tax rate for electric vehicles to a kilowatt per mile or egallon tax rate or equivalent.
7. Directs ADOT to submit a report, on or before December 31, 2025, to the Governor, President of the Senate, Speaker of the House of Representatives and the Secretary of State that includes:
a. An outline of the effectiveness of the established electric and hybrid vehicles tax; and
b. Any proposed legislation that may be required to implement the recommendations of ADOT.
8. Requires ADOT, in developing the report, to consult with:
a. representatives from the electric car industry;
b. a statewide trucking association;
c. an international registration plan;
d. an international fuel tax agreement; and
e. other relevant stakeholders.
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Fifty-fourth Legislature HB 2536
First Regular Session Version 3: Caucus & COW
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