This bill proposes several updates to the current statutes regarding motor fuel taxes in Arizona. It amends section 28-5606 to establish a gas tax equivalent for electric vehicles and other alternative fuel vehicles. Specifically, it allows the Arizona Department of Transportation (ADOT) to set a tax for fuel sources not currently listed, 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 introduces conversion standards for determining tax rates based on the type of motor vehicle.

The bill also includes a definition for "usable diesel gallon equivalent," which accounts for energy density and heat loss in internal combustion engines, ensuring that alternative fuel vehicles contribute fairly to highway maintenance costs. It emphasizes legislative intent to ensure equitable taxation for all vehicle types based on their highway usage. Furthermore, the bill stipulates that it requires a two-thirds majority vote in both legislative houses for enactment and becomes effective immediately upon the governor's signature.

Statutes affected:
Introduced Version: 28-5606