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ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1334

 

license tax; alternative fuel vehicles

 

Purpose

 

Limits the definition of an alternative fuel motor vehicle to vehicles that meet the federal low-speed vehicle requirements.

 

Background

 

State law currently promotes the use of alternative fuels through a variety of tax and grant incentives to encourage both individuals and businesses to purchase, lease or convert alternative fuel vehicles (AFVs).  The current tax incentives are primarily in the form of income tax credits and deductions, but also include a reduced vehicle license tax for AFVs. 

 

A separate classification of motor vehicles is established for purposes of taxation that consists of motor vehicles powered by alternative fuel.  Legislation passed in 1999 also included neighborhood electric vehicles (NEVs) in the definition of a motor vehicle.

 

S.B. 1334 expands the definition of a motor vehicle to include alternative fuel vehicles that meet the federal low speed vehicle requirements and are equipped with the minimum motor vehicle equipment appropriate for motor vehicle safety.  The federal definition of a low-speed vehicle requires that a vehicle not exceed 25 miles per hour and must be equipped with headlamps, front and rear turn signal lamps, tail lamps, reflectors, exterior mirrors, a parking brake, a windshield, a vehicle identification number and a seat belt.

 

There is no estimated fiscal impact to the general fund associated with this legislation.

 

Provisions

 

1.      Limits the definition of an alternative fuel motor vehicle to vehicles that meet the federal low-speed vehicle requirements.  

 

2.      Repeals a defective enactment.

 

3.      Makes technical and conforming changes.

 

4.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 25, 2000