The proposed bill, if enacted, would amend current statutes regarding motor fuel taxes in Arizona by introducing a gas tax equivalent for electric vehicles and other alternative fuel vehicles. Specifically, it would allow the Arizona Department of Transportation (ADOT) to establish a tax for fuel sources not currently listed, with rates determined by the Director of ADOT based on the tax of the motor vehicle class being replaced. For electric vehicles under 10,001 pounds, the tax could either be an average of the tax paid by a comparable gasoline vehicle or based on the vehicle's kilowatt-hour usage converted to a gas gallon equivalent.

Additionally, the bill would define "usable diesel gallon equivalent" and set conversion standards for determining tax rates based on the type of motor vehicle. It emphasizes legislative intent to ensure that alternative fuel vehicles contribute fairly to highway maintenance costs, similar to traditional fuel vehicles. The bill also includes provisions for its enactment, requiring a two-thirds majority vote in both legislative houses and immediate effectiveness upon the Governor's signature.

Statutes affected:
Introduced Version: 28-5606