This bill proposes several updates to current statutes regarding motor vehicle fuel taxes in Arizona. Under the current law, a tax of eighteen cents per gallon is imposed on motor vehicle fuel, and a use fuel tax of twenty-six cents per gallon is applied to use fuel. The bill modifies these rates, changing the motor vehicle fuel tax to $.18 and the use fuel tax to $.26. Additionally, it introduces a provision that exempts motor vehicle fuel from taxation in specified areas (Area A and Area C) during the summer months, from May 1 to September 30, and mandates that vendors cannot recover this tax from consumers during this period.

Furthermore, the bill establishes new allocation requirements for the state highway fund, specifying that $72,600,000 will be distributed annually to counties, cities, and towns, with particular amounts designated for larger municipalities. It also restricts the department or its committee from prioritizing transportation projects based on the fuel tax contributions from counties. Lastly, the bill includes an emergency measure clause, allowing it to take effect immediately upon the Governor's signature, and exempts the Department of Transportation from certain rulemaking requirements for one year to facilitate implementation.

Statutes affected:
Introduced Version: 28-5606, 28-6535, 28-5432, 28-5433, 41-1516, 28-8344, 28-5636, 49-541, 3-3401
House Engrossed Version: 28-5606, 28-6951, 28-7012, 28-5432, 28-5433, 41-1516, 28-8344, 28-5636, 49-541, 3-3401, 28-339