HB2711 - 472R - House Bill Summary

House of Representatives

HB 2711

tax incentives; biodiesel; ethanol E85

Sponsors: Representative Boone, Representative Barnes

X	Committee on Environment
	Committee on Appropriations (B)
	Caucus and COW
	As Engrossed and As Passed the House

HB 2711 exempts biodiesel fuel that is a blend between 20% and 80% by volume biodiesel and ethanol blend E85 from motor vehicle fuel and use fuel taxes, beginning January 1, 2007 through December 31, 2013. Additionally, real and personal property and improvements used for the production of ethanol or biodiesel fuel that are valued at full cash value are placed in class three property classification, as of January 1, 2007.

The Strike-everything Amendment to HB 2711 places real and personal property and improvements used specifically and solely to produce ethanol and its by-products or 100% biodiesel fuel and its by-products that are valued at full cash value in class six property classification, as of January 1, 2007.

History of the Strike Everything Amendment

Arizona’s property tax system classifies property according to its usage. Each class of property is assigned an assessment ratio, pursuant to state law, ranging from 1% to 25%. The assessment ratios are applied to both the primary and secondary values of a property and determine a property’s net assessed value.

Class 6 property

Class 6 properties are noncommercial historic, foreign trade zone, qualifying military reuse zone, qualifying enterprise zone, qualifying environmental technology and qualifying environmental remediation properties, which are assigned a 6% assessment ratio.

Provisions of the Strike Everything Amendment

· Places real and personal property and improvements used specifically and solely to produces ethanol or 100% biodiesel fuel and their by-products that are valued at full cash value in class six property classification, as of January 1, 2007.

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Forty-seventh Legislature