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HB2012 • 2026

vehicle registration; fees; alternative fuel

HB2012 - vehicle registration; fees; alternative fuel

Energy Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Nick Kupper
Last action
2026-01-13
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The bill's status as 'Passed Legislature' is not reflected in the official summary, which shows it as 'Introduced'.

Vehicle Registration Fees for Alternative Fuel Vehicles

HB2012 modifies vehicle registration fees in Arizona to increase costs for alternative fuel vehicles and hybrid vehicles that use both alternative fuels and gasoline.

What This Bill Does

  • Changes the annual registration fee for vehicles powered exclusively by gasoline or diesel fuel to $8.
  • Increases the annual registration fee for vehicles fueled exclusively by alternative fuel to $85.
  • Sets a new annual registration fee of $40 for hybrid vehicles that use both alternative fuels and gasoline.

Who It Names or Affects

  • Owners of vehicles powered only by gasoline or diesel fuel
  • Owners of vehicles fueled exclusively by alternative fuel
  • Owners of hybrid vehicles using a combination of alternative fuels and gasoline

Terms To Know

Alternative Fuel
A type of fuel that is not traditional gasoline or diesel, such as electric power, compressed natural gas, propane, hydrogen, or methanol.
Highway User Revenue Fund (HURF)
The fund where money from vehicle registration fees goes to help build and maintain roads in Arizona.

Limits and Unknowns

  • This bill needs a two-thirds vote in both chambers of the legislature to pass.
  • It is not clear how many hybrid vehicles are currently registered in Arizona that use both alternative fuels and gasoline.

Bill History

  1. 2026-01-13 House

    House second read

  2. 2026-01-12 House

    House Rules: None

  3. 2026-01-12 House

    House Transportation & Infrastructure: None

  4. 2026-01-12 House

    House first read

Official Summary Text

HB2012 - 572R - Fiscal Note

BILL
#
��� HB 2012

TITLE:
���
vehicle
registration; fees; alternative fuel

SPONSOR:
��� Kupper

STATUS:
��
Introduced

PREPARED
BY:
��� Jordan
Johnston

Description

The
introduced version of HB 2012 would modify vehicle registration fees (currently
$8 for all motor vehicles) as follows: 1) $8 fee for vehicles powered
exclusively by gasoline or diesel fuel, 2) $85 for vehicles fueled exclusively
by alternative fuel, and 3) $40 fee for vehicles fueled by a combination of
alternative fuel and gasoline.� The bill further adjusts registration fees for
vehicles fueled exclusively by alternative fuel or a combination of alternative
fuel and gasoline proportionally if the gas tax rate is modified.

Estimated
Impact

We
estimate that the bill would increase Highway User Revenue Fund (HURF) revenues
by $18.4 million beginning in FY 2027.

Analysis

Our
estimate assumes the following:

1)

There are 130,000
vehicles fueled exclusively by alternative fuel in FY 2025.� This estimate is
based on:

-

Arizona
Department of Transportation (ADOT) data indicating there are 128,800
electric-powered vehicles registered in the state in FY 2025.�

-

The
U.S. Department of Energy reported approximately 1,300 vehicles in Arizona were
powered by other alternative fuels in 2023 (i.e. compressed natural gas,
propane, hydrogen, methanol).� Our estimate prorates the 2023 registration
count to 1,200 vehicles in 2025 based on recent projections for each vehicle
category.

-

Since
the owners currently pay $8 per vehicle, the new $85 fee would generate an
additional $78 per vehicle.�� With 130,000 vehicles, the additional revenue
would be $10.1 million.

2)

There are 260,000
"hybrid" vehicles fueled exclusively by a combination of alternative
fuel and motor vehicle fuel in FY 2025.� This estimate is based on:

-

The
U.S. Department of Energy reported approximately 25,600 plug-in hybrid vehicles
in Arizona in 2023.� Our estimate prorates the 2023 registration count to
35,000 vehicles in 2025 based on recent projections for the vehicle category.

-

The
U.S. Department of Energy reported approximately 175,700 hybrid electric
vehicles in Arizona in 2023.� Our estimate prorates the 2023 registration count
to 225,000 vehicles in 2025 based on recent projections for the vehicle
category.

-

Since
the owners currently pay $8 per vehicle, the new $40 fee would generate an
additional $32 per vehicle.� With 260,000 vehicles, the additional revenue
would be $8.3 million.

3)

The gas tax rate
remains at $0.18/gallon in FY 2027.

4)

Local governments
receive 49.5% of all HURF revenues.� We estimate the bill will increase the
local HURF revenues by $9.1 million beginning in FY 2027.

���������������
1/13/26

Current Bill Text

Read the full stored bill text
HB2012 - 572R - I Ver

PREFILED��� NOV 18 2025

REFERENCE TITLE:
vehicle registration; fees; alternative fuel

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2012

Introduced by

Representative
Kupper

AN
ACT

Amending section 28-2003, Arizona Revised
Statutes; relating to vehicle registration fees.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-2003, Arizona Revised
Statutes, is amended to read:

START_STATUTE
28-2003.

Fees; vehicle title and registration; identification plate;
definitions

A. The following fees are
required:

1. For each certificate of
title, salvage certificate of title, restored salvage certificate of title or
nonrepairable vehicle certificate of title, $4.

2. For each certificate of
title for a mobile home, $7. The director shall deposit $3 of each
fee imposed by this paragraph in the state highway fund established by section
28-6991.

3. Except as provided in
section 28-1177, for the
annual
registration of
:

(
a
)
A motor vehicle
that is:

(
i
) Fueled exclusively by motor vehicle fuel or use fuel
,
$8
.
, except that the fee for

(
ii
) Fueled exclusively by an alternative fuel that is not a
use fuel and that does not operate using motor vehicle fuel or use fuel, an
amount equal to $85 multiplied by the ratio of the motor fuel tax imposed by
section 28-5606, subsection A to $.18.

(
iii
) Fueled by a combination of alternative fuel and motor
vehicle fuel or use fuel, an amount equal to $40 multiplied by the ratio of the
motor fuel tax imposed by section 28-5606 to $.18.

(
b
)
Motorcycles
,

is

$9.

4. For a duplicate
registration card or any duplicate permit, $4.

5. For each special ninety
day nonresident registration issued under section 28-2154, $15.

6. For the registration of
a trailer or semitrailer that is not a travel trailer, that is ten thousand
pounds or less declared gross weight and that is used in the furtherance of a
commercial enterprise, $8.�

7. For the registration of
a trailer or semitrailer that is not a travel trailer and that exceeds ten
thousand pounds declared gross weight:

(a) On initial
registration, a onetime fee of $245.

(b) On renewal of
registration or if previously registered in another state, a onetime fee of:

(i) If the trailer's or
semitrailer's model year is less than six years old, $145.

(ii) If the trailer's or
semitrailer's model year is at least six years old, $95.

8. For the registration of
a noncommercial trailer that is not a travel trailer and that is ten thousand
pounds or less declared gross weight:

(a) On initial
registration, a onetime fee of $20.

(b) On renewal of
registration, a onetime fee of $5.

9. For a transfer of a
noncommercial trailer that is not a travel trailer and that is ten thousand
pounds or less declared gross weight, $12.

10. For each special
ninety day resident registration issued under section 28-2154, $15.

11. For each one trip
registration permit issued under section 28-2155, $1.

12. For each temporary
general use registration issued under section 28-2156, $15.

13. For each
identification plate bearing a serial or identification number to be affixed to
any vehicle, $5.

B. For the purposes of
this section:

1. "Declared gross
weight" has the same meaning prescribed in section 28-5431.

2. "Travel
trailer" means a trailer that is:

(a) Mounted on wheels.

(b) Designed to provide
temporary living quarters for recreational, camping or travel use.

(c) Less than eight feet
in width and less than forty feet in length.
END_STATUTE

Sec. 2.
Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22,
Constitution of Arizona, this act is effective only on the affirmative vote of
at least two-thirds of the members of each house of the legislature and is
effective immediately on the signature of the governor or, if the governor
vetoes this act, on the subsequent affirmative vote of at least three-fourths
of the members of each house of the legislature.