ARIZONA STATE SENATE
Phoenix, Arizona
restricted fuel
distributors; reporting requirements
Modifies the requirements of
restricted fuel distributors in reporting the sale of gasoline to the Arizona
Department of Transportation (ADOT).
Highway user revenue fund
(HURF) monies are distributed to various recipients. The Legislature has provided direction for specific off-the-top
distributions such as distributions to the Department of Public Safety. State law delineates the distribution of the
balance of HURF revenues to the counties and cities in Arizona and to the state
highway fund.
State law also provides for
correction of misreporting or other errors that may occur to correct prior
distributions of revenues. According to
ADOT, adjustments in amended reports and audits are a constant fact affecting
the HURF distribution. Most adjustments
do not significantly impact the distribution of HURF revenues to any specific
recipient. However, on occasion a
supplier may amend its reports or a major audit of a company may result in
adjustments. As a result, monies to
recipients can be dramatically affected.
Approximately 18 months ago, Cochise County experienced a drop of 48
percent in its monthly distribution as the result of the filing of multiple
amended reports by a major fuel supplier.
Recently, a number of cities experienced drops in their monthly revenue
from HURF of between 33 to 36 percent.
Legislation passed in 2001 limits adjustments to no more than 25 percent
per month (Laws 2001, Chapter 287).
Suppliers in Arizona collect
fuel taxes. Distributors move fuel between counties. The calculation of the distribution of HURF revenues is based in
part on the gallons of gasoline sold in each county. Suppliers and restricted distributors must work together to
arrive at the proper reporting of the county where the ultimate sale takes
place. According to ADOT, the current
reporting system is not sufficient to prevent the occurrence of reporting
errors.
S.B. 1027 requires
restricted distributors to report the movement of fuel from the original
purchase county to the county of destination on a load by load basis. ADOT believes this will enhance the
Department’s ability to track the movement of the fuel and to more precisely
account for the destination of the fuel.
1. Modifies the reporting requirements of restricted fuel distributors to include the amount of fuel acquired by the restricted distributor during the past month and the disposition of the fuel to the counties.
2. Makes conforming changes.
3. Provides for a general effective date.
Prepared by Senate Staff
January 16, 2002