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HB2400 - 572R - H Ver
House Engrossed
motor fuel tax
holiday
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2400
AN
ACT
Amending sectionS 28-5606 AND 28-6951,
Arizona Revised Statutes; AMENDING title 28, chapter 20, article 4, Arizona
Revised Statutes, by adding section 28-7012; relating to motor fuel tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 28-5606, Arizona Revised
Statutes, is amended to read:
START_STATUTE
28-5606.
Imposition of motor fuel taxes; tax holiday
A. In addition to all other taxes provided by law, a
tax of
eighteen cents
$.18
per
gallon is imposed on motor vehicle fuel possessed, used or consumed in this
state.
B. To partially compensate this state for the use of
its highways:
1. A use fuel tax is imposed on use fuel used in the
propulsion of a light class motor vehicle on a highway in this state at the
same rate per gallon as the motor vehicle fuel tax prescribed in subsection A
of this section, except that there is no use fuel tax on alternative fuels.
2. A use fuel tax is imposed on use fuel used in the
propulsion of a use class motor vehicle on a highway in this state at the rate
of
twenty-six cents
$.26
for
each gallon, except that there is no use fuel tax on alternative fuels and use
class vehicles that are exempt pursuant to section 28-5432 from the
weight fee prescribed in section 28-5433 are subject to the use fuel tax
imposed by paragraph 1 of this subsection.
3. Through December 31, 2024, a use fuel tax is
imposed on use fuel used in the propulsion of a motor vehicle transporting
forest products in compliance with the requirements of section 41-1516 on a
highway in this state at the rate of
nine cents
$.09
for each gallon, except that there is no use fuel tax on
alternative fuels.
C. The motor vehicle fuel and use fuel taxes imposed
pursuant to this section and the aviation fuel taxes imposed pursuant to
section 28-8344 are conclusively presumed to be direct taxes on the
consumer or user but shall be collected and remitted to the department by
suppliers for the purpose of convenience and facility only. Motor
vehicle fuel, use fuel and aviation fuel taxes that are collected and paid to
the department by a supplier are considered to be advance payments, shall be
added to the price of motor vehicle fuel, use fuel or aviation fuel and shall
be recovered from the consumer or user.
D. Motor vehicle fuel and use fuel taxes imposed
pursuant to this section on the use of motor vehicle fuel and use fuel and the
aviation fuel taxes imposed pursuant to section 28-8344 on the use of
aviation fuel, other than by bulk transfer, arise at the time the motor
vehicle, use or aviation fuel either:
1. Is imported into this state and is measured by
invoiced gallons received outside this state at a refinery, terminal or bulk
plant for delivery to a destination in this state.
2. Is removed, as measured by invoiced gallons, from
the bulk transfer terminal system or from a qualified terminal in this state.
3. Is removed, as
measured by invoiced gallons, from the bulk transfer terminal system or from a
qualified terminal or refinery outside this state for delivery to a destination
in this state as represented on the shipping papers if a supplier imports the
motor vehicle, use or aviation fuel for the account of the supplier or the
supplier has made a tax precollection election pursuant to section 28-5636.
E. If motor fuel is removed from the bulk transfer
terminal system or from a qualified terminal or is imported into this state,
the original removal, transfer or importation of the motor fuel is subject to
the collection of the tax. If this motor fuel is transported to
another qualified terminal or reenters the bulk transfer terminal system, the
subsequent sale of the motor fuel on which tax has been collected is not
subject to collection of an additional tax if proper documentation is retained
to support the transaction.
F. Notwithstanding subsection A of
this section, a motor vehicle fuel tax is not imposed beginning at 12:00 a.m.
on May 1 and ending at 11:59 p.m. on September 30 of each year for motor
vehicle fuel that is purchased, sold, possessed, used or consumed in area A as
defined in section 49-541 or area C as defined in section 3-3401. A
vendor shall not add to the price of motor vehicle fuel and shall not recover
from the consumer or user an amount to cover, or designated as, motor vehicle
fuel tax during the time period and in the areas prescribed by this
subsection. Any amounts erroneously or improperly collected as motor
vehicle fuel tax must be remitted to the department. The reporting
requirements for suppliers of motor vehicle fuel, including the requirements in
chapter 16, article 1 of this title, remain in effect for all vendors in all
locations in this state at all times.
END_STATUTE
Sec. 2. Section 28-6951, Arizona Revised
Statutes, is amended to read:
START_STATUTE
28-6951.
Five year
transportation facilities construction program; departmental committee
A. The director shall develop a five year
transportation facilities construction program according to the policies
established by the board.
B. To aid in the development of the five year
transportation facilities construction program, the director shall appoint a
departmental committee that is responsible to the director. The
departmental committee is subject to title 38, chapter 3, article
3.1.
The department or the departmental committee may
not recommend a priority for a TRANSPORTATION construction project based on the
amount of motor vehicle fuel tax or use fuel tax that a county contributes
toward deposit in the state highway fund.
C. The departmental committee shall:
1. Recommend priorities on transportation facilities
construction projects to be constructed by this state that may include any
relevant criteria for the development of priority recommendations for the
construction and development of transportation facilities to be constructed by
this state.
2. Update and prepare annually a long-range
statewide transportation facilities construction program covering the following
five fiscal years for submission to the board as follows:
(a) The first year of the five year program shall
consist of the highest priority transportation facilities construction projects
that with reasonable certainty can be advertised for public bidding.
(b) The committee shall group proposed projects for
the four remaining years of the five year program by the year it is estimated
construction will begin and in order of their priorities.
(c) The committee shall provide the estimated cost
of the program for each year that is approximately equal to the revenues
estimated to be available for transportation facilities construction purposes
during that year.
3. Review priority changes in or introduction of new
projects to a proposed or an adopted five year program that the board has
requested and make recommendations in a written report to the board on the
requested priority changes or introduction of new projects based on a study of
the criteria and policy that establish the priorities of projects.
4. Review the adopted five year transportation
facilities construction program from time to time during the fiscal year and
make recommendations in a written report to the board for priority changes in
or introduction of new projects to the program based on a study of the criteria
and policy that establish the priorities of projects.
5. Review and make recommendations to the board for
applications submitted pursuant to section 28-339.
6. Fully document its recommendations in the written
reports required by this section.
END_STATUTE
Sec. 3. Title 28, chapter 20, article 4,
Arizona Revised Statutes, is amended by adding section 28-7012, to read:
START_STATUTE
28-7012.
State highway user revenue fund distribution; local government
For each FISCAL year, the department shall
allocate and transfer $72,600,000 in the
state highway
fund as follows:
1. $27,588,000 to the counties.
2. $39,930,000 to the cities and
towns.
3. $5,082,000 to cities and towns
with a POPULATION of three hundred THOUSAND or more persons.
END_STATUTE
Sec. 4.
Exemption from rulemaking
The department of transportation is
exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised
Statutes, for one year after the effective date of this act to adopt
administrative rules regarding the implementation of this act.
(ENACTED
WITHOUT THE EMERGENCY)
Sec. 5.
Emergency
This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.