Bill > SB1547

This bill amends existing Arizona law to impose new taxes on vehicles powered by alternative fuels, such as electricity, propane, compressed natural gas, liquid natural gas, and hydrogen, to ensure they contribute proportionally to highway use and maintenance, similar to vehicles using traditional motor fuels. The new taxes are calculated based on the type of alternative fuel and the vehicle's weight or axle count, with specific rates established for light motor vehicles and heavy-duty vehicles (defined as over 26,000 pounds gross vehicle weight rating or with three or more axles). For instance, light electric vehicles will pay an annual amount equivalent to the motor vehicle fuel tax, while vehicles using a combination of electricity and other fuels will pay a prorated amount plus the per-gallon tax on the non-electric fuel. Heavy-duty vehicles will face taxes based on kilowatt-hours for electricity or per gallon equivalent for other alternative fuels, all indexed to the existing use fuel tax rates. The bill also defines "heavy-duty vehicle" and "light motor vehicle" and clarifies "usable diesel gallon equivalent" as a conversion to a common energy density for tax calculation. This legislation requires a two-thirds vote for enactment due to its tax implications.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85159