Purpose

Requires the Arizona Department of Transportation (ADOT) to adjust highway user revenue fund (HURF) and vehicle license tax (VLT) allocations by no more than twenty five percent each month.

Background

The HURF was established to collect and maintain transportation related funds. It is administered by ADOT and its sources include: gasoline taxes, vehicle license taxes, motor vehicle registrations, motor carriers and other small fees.

Nineteen percent of the HURF is distributed to Arizona counties. Of the nineteen percent, 72 percent of the counties’ monthly HURF allocation is distributed according to each county’s portion of the amount of gasoline sold and the estimated use fuel consumed in the state. The remaining 28 percent of the amount is distributed according to each county’s portion of the state’s unincorporated population.

In the distribution of HURF allocations, an overage may occur when a county receives more than its designated monthly allocation. Currently, statute outlines distribution adjustments for shortages and overages. In the case of overages, monies will be reconstituted by subtracting the overage from the subsequent months’ HURF allocations, allowing the monthly subtraction to be up to 50 percent of the total regular allocation for that month. This legislation requires ADOT to adjust the distribution to smaller increments.

There is no anticipated fiscal impact associated with this legislation.

Provisions

1. Requires that when an overage in HURF and VLT allocations occur, ADOT can reduce the monthly allocation by the amount of the overage as long as the remaining amount is at least 75 percent of the original allocation.

2. Extends the distribution adjustment requirements to the vehicle license tax distribution.

3. Provides for a general effective date.

GA/NS/ac