HB 2166: vehicle fees; alternative fuel VLT

PRIME SPONSOR: Representative Campbell, LD 1

BILL STATUS: Chaptered


Director – Director of Arizona Department of Transportation
DPS – Arizona Department of Public Safety 
VLT – Vehicle License Tax
Amendments – BOLD and Stricken (Committee)



☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRelating to highway safety fee and the VLT classification of alternative fuel vehicles.


1.       Requires the registering officer annually collect a highway safety fee with the vehicle registration application. (Sec. 1)

2.       Instructs the Director to deposit all highway safety fee monies collected into the Arizona Highway Patrol Fund. (Sec. 1)

3.       Requires the Director to annually determine the fee that must fund 110% of DPS highway patrol budget for each fiscal year minus any unencumbered balance exceeding 10% of the previous year's deposit. (Sec. 1)

4.       Requires the VLT for alternative fuel vehicles purchased before January 1, 2020 to be set by the Director as a percentage of the value the motor vehicle's base retail price. (Sec. 3)

5.       Stipulates the initial VLT for alternative fuel vehicles with a gross weight under 10,000 pounds that are purchased after January 1, 2020 is 30% of the manufacturer's base retail price. 

a.       Requires the value of the vehicle decrease 15% annually. (Sec. 3)

6.       Eliminates the separate VLT classification for alternative fuel vehicles with a gross weight of over 10,000 pounds for vehicles purchased after January 1, 2020. (Sec. 3)

7.       Exempts ADOT from rulemaking to set the annual highway safety fee. (Sec. 1)

8.       Contains a delayed effective date for provisions relating to the alternative fuel vehicle classification to January 1, 2020. (Sec. 5)

9.       Contains a Legislative intent clause. (Sec. 6)

10.   Makes technical and conforming changes.

Current Law

Alternative Fuel is defined as: 1) electricity; 2) solar energy; 3) liquefied petroleum gas, natural gas, hydrogen or a blend; 4) for vehicles that use alcohol fuels that contain no less than 85% alcohol by volume; and 6) a combination of at least 70% alternative fuel and no more than 30% petroleum-based fuel (A.R.S. § 1-215). 

Alternative fuel vehicles have an annual VLT of $4 per $100 in value.  For the first year, the value of alternative fuel vehicle is determined by 1% of the manufacturer's base retail price of the motor vehicle. Each successive year, the value of the motor vehicle is 15% less than the prior year's value (A.R.S. § 28-5805).



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Fifty-third Legislature                  HB 2166

Second Regular Session                               Version 4: Chaptered


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