ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

HB 2670: undergrounds storage tanks; tax extension

Sponsor: Representative John, LD 4

Committee on Natural Resources, Energy & Water

Overview

Extends the repeal of the excise tax levied on each gallon of regulated substances stored in underground storage tanks (USTs) until January 1, 2031.

History

A UST is a tank or combination of tanks and underground pipes and impact valves connected to tanks that contain regulated substances (such as diesel or gasoline) and which has at least 10% of the total volume of the tank and portions of pipes connected to the tank underground (A.R.S. § 49-1001(21)).

The Arizona Department of Environmental Quality (ADEQ) Director collects an excise tax of one cent per gallon on regulated substances placed in a UST each calendar year. This tax does not apply to USTs operated by federal and state agencies or certain substances placed in these tanks such as kerosene-type jet fuel (A.R.S. § 49-1031). This tax will be repealed on January 1, 2024 (Laws 2015, Chapter 247, § 22).

In fiscal year 2020, this tax generated nearly $32 million which was deposited into the UST Revolving Fund. Monies in this fund are used for a variety of purposes, which include providing state matching monies under the federal Solid Waste Disposal Act, the program's regulatory costs, fund administration, and loans and reimbursements to tank owners for tanking corrective and remediation acts (A.R.S. § 49-1015).

Provisions

1. Extends the repeal of the excise tax levied on each gallon of regulated substances stored in USTs until January 1, 2031. (Sec. 1)

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5. HB 2670

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