ARIZONA STATE SENATE
Phoenix, Arizona
vehicle license tax; gas tax
Phases
out the current vehicle license tax portion to the Arizona highway users
revenue fund (HURF) over a three-year period and assesses an additional
phased-in motor vehicle fuel tax.
Vehicle license tax (VLT) is
assessed on new and used vehicles registered in Arizona, and is distributed to
local governments and HURF. HURF monies
are further divided among the state highway fund, counties, cities and towns.
S.B. 1215 reduces VLT for
both new and used vehicles by approximately 45 percent by January 2005. Specifically, the bill phases out VLT
assessments for HURF, which are currently $1.26 and $1.30 per $100 of assessed
valuation for new and used vehicles respectively.
VLT allocations to local
governments are unchanged. The bill
also increases motor vehicle fuel taxes deposited into HURF, over the same
three-year period, and subsequently annually adjusts the amount of the tax to
reflect the annual percentage change in the GDP price deflator.
According to the Arizona
Department of Transportation, the nine-year cumulative fiscal gain of this bill
on HURF will be $52.8 million.
1. Establishes an additional phased-in motor vehicle fuel tax to be paid by consumers on motor vehicle fuel possessed, used or consumed in the State as follows:
·
beginning
on January 1, 2003, $0.04 per gallon
·
beginning
on January 1, 2004, $0.08 per gallon
·
beginning
on January 1, 2005, $0.12 per gallon
· beginning on January 1, 2006, annually adjust the amount to reflect the annual percentage change in the GDP price deflator
2. Imposes an additional use fuel tax on light class motor vehicles at the same rate as the additional motor vehicle fuel tax.
3. Requires motor vehicle fuel suppliers to collect and remit the tax.
4. Imposes the tax when motor vehicle fuel, as measured by invoiced gallons, is either imported into Arizona for delivery here or removed from an Arizona bulk transfer terminal system or qualified terminal.
5. Phases out the HURF VLT assessment charged on the initial registration of a new vehicle using the following schedule:
·
through
December 31, 2002, $1.26
·
beginning
on January 1, 2003, $0.84
·
beginning
on January 1, 2004, $0.42
·
beginning
on January 1, 2005, zero
6. Phases out the HURF VLT assessment charged on the registration of used vehicles using the following schedule:
·
through
December 31, 2002, $1.30
·
beginning
on January 1, 2003, $0.87
·
beginning
on January 1, 2004, $0.44
·
beginning
on January 1, 2005, zero
Miscellaneous
7. Makes conforming changes.
8. Provides for a general effective date.
Prepared by Senate Staff
February 6, 2002