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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
ADOT revisions; aircraft staggered registration
Purpose
Requires the Director of the Arizona Department of Transportation (ADOT) to establish a system of staggered aircraft registration. Specifies that a person does not need to perfect a tax exemption on motor fuel if the fuel moves in interstate commerce and is not destined for Arizona. Makes other revisions to various transportation statutes.
Background
An aircraft that is based in Arizona is required to be registered with ADOT. A person or governmental entity must register an aircraft by applying to ADOT within 60 days after the aircraft is brought into the state. A person who registers an aircraft is required to renew the registration annually for each calendar year on or before the last day of February. This registration requirement does not apply to an aircraft that is: 1) operated by an airline company and regularly scheduled for the primary purpose of carrying persons or property for hire in interstate, intrastate or international transportation; or 2) owned by a nonresident who based the aircraft in Arizona for a period of not more than 90 consecutive days or 90 days in one calendar year, if the aircraft is not engaged in intrastate commercial activity (A.R.S. § 28-8322).
The motor fuel tax imposed on motor vehicle fuel possessed, used or consumed in Arizona is 18 cents per gallon (A.R.S. § 28-5606). However, motor vehicle fuel that is moving in interstate or foreign commerce and not destined or diverted to a point in Arizona is exempt from motor fuel taxes. A person who claims the exemption is required to perfect the exemption by claiming a refund (A.R.S. § 28-5610).
ADOT is currently required to adopt rules relating to child restraint systems and motorcycle noise levels (A.R.S. §§ 28-907 and 28-955.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Staggered Aircraft Registration
1. Requires the Director of ADOT (Director) to establish a system of staggered registration on a monthly basis to distribute the work of registering aircraft as uniformly as practicable throughout the 12-month calendar year.
2. States that all aircraft registrations expire pursuant to schedules established by the Director.
3. Allows the Director to set the number of renewal periods within the month from one renewal period each month to one renewal period each day, depending on which system is most economical and best accommodates the public.
4. Requires ADOT to charge a prorated license tax that is one-twelfth for each full month of the registration cycle and the full registration fee, if adoption of the staggered system results in the expiration of a registration more than one year from its issuance.
5. Allows ADOT, in order to initiate a system of registering and reregistering an aircraft during any month of the calendar year, to:
a) register or reregister an aircraft for more or less than a 12-month period, but not more than an 18-month period; and
b) prorate the license tax by one-twelfth for each full month of the registration cycle and charge the full registration fee.
6. Allows the Director or a registering officer to allow for a person who owns two or more aircraft, to register or reregister the aircraft for less than one year so that the aircraft's registrations expire on the same date.
7. Requires the Director to adopt rules necessary to implement the staggered registration.
Fleet Registration
8. Allows a person to register a fleet of two or more aircraft on an annual basis so that the registrations for all aircraft in the fleet expire in the same month, in lieu of the staggered aircraft registration.
9. Requires the Director to approve the request for fleet registration if the applicant, at least 30 days before the registration date, provides:
a) an application containing information necessary for qualification as a fleet registrant; and
b) a list of all aircraft to be included in the fleet.
10. Requires, for the purposes of establishing a new fleet registrant and in order to establish a uniform month of expiration:
a) ADOT to maintain the valuation for aircraft determined at the current valuation if it is necessary to calculate a prorated license tax;
b) the license tax for that year on aircraft to be prorated by one-twelfth for each full month of the registration cycle; and
c) the aircraft owner to pay the full registration fee which is prohibited from being prorated.
General Aircraft Registration
11. Requires ADOT to issue a registration certificate, rather than a license decal, which is to be kept with the aircraft at all times.
12. Removes the requirement that a license decal be issued for an aircraft and for the decal to be displayed on the aircraft at all times.
13. Exempts a balloon aircraft from being registered.
Motor Fuel Tax Exemptions
14. Specifies that a person who claims an exemption from motor vehicle fuel taxes does not need to perfect the exemption by claiming a refund if the motor fuel originates outside of Arizona, is moving in interstate or foreign commerce and is not destined or diverted to a point in Arizona.
Highway Expansion and Extension Loan Program Fund
15. Exempts the State Transportation Board (Board) from an annual financial audit of the Fund if:
a) unexpended monies do not remain in the Fund except interest and investment earnings deposited;
b) there are no outstanding eligible project loans in the Fund;
c) all approved or pending eligible project loans or other financial assistance applications are disbursed and the Board does not expect additional financial assistance applications; and
d) there are no outstanding Board funding obligations due to the State Treasurer.
Child Restraint System Standards
16. Requires child restraint systems to meet federal requirements, rather than requiring ADOT to adopt rules in accordance with federal requirements.
Motorcycle Noise Levels
17. Requires motorcycle noise levels and related equipment to meet federal requirements, rather than requiring ADOT to adopt rules for maximum motorcycle noise levels.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
House Action
TRANS 1/27/21 DP 12-0-0-0
3rd Read 2/4/21 59-0-0-0-1
Prepared by Senate Research
March 11, 2021
ZD/SS/kja