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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
ADOT revisions; aircraft staggered registration
Purpose
Specifies that a person does not need to perfect a tax exemption on motor fuel if the fuel moves in interstate commerce and is not destined for Arizona. Makes other revisions to various transportation statutes.
Background
The motor fuel tax imposed on motor vehicle fuel possessed, used or consumed in Arizona is 18 cents per gallon (A.R.S. § 28-5606). However, motor vehicle fuel that is moving in interstate or foreign commerce and not destined or diverted to a point in Arizona is exempt from motor fuel taxes. A person who claims the exemption is required to perfect the exemption by claiming a refund (A.R.S. § 28-5610).
The State Transportation Board (Board) is required to annually cause a financial audit, conducted by a certified public accountant within six months after the end of each fiscal year, to be made of the Highway Expansion and Extension Loan Program Fund (Fund) (A.R.S. § 28-7675).
The Arizona Department of Transportation (ADOT) is currently required to adopt rules relating to child restraint systems and motorcycle noise levels (A.R.S. §§ 28-907 and 28-955.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Motor Fuel Tax Exemptions
1. Specifies that a person who claims an exemption from motor vehicle fuel taxes does not need to perfect the exemption by claiming a refund if the motor fuel originates outside of Arizona, is moving in interstate or foreign commerce and is not destined or diverted to a point in Arizona.
Highway Expansion and Extension Loan Program Fund
2. Exempts the Board from an annual financial audit of the Fund if:
a) unexpended monies do not remain in the Fund except interest and investment earnings deposited;
b) there are no outstanding eligible project loans in the Fund;
c) all approved or pending eligible project loans or other financial assistance applications are disbursed and the Board does not expect additional financial assistance applications; and
d) there are no outstanding Board funding obligations due to the State Treasurer.
Child Restraint System Standards
3. Requires child restraint systems to meet federal requirements, rather than requiring ADOT to adopt rules in accordance with federal requirements.
Motorcycle Noise Levels
4. Requires motorcycle noise levels and related equipment to meet federal requirements, rather than requiring ADOT to adopt rules for maximum motorcycle noise levels.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Removes the requirement to establish a system of staggered aircraft registration and removes provisions relating to fleet aircraft registration and general aircraft registration.
House Action Senate Action
TRANS 1/27/21 DP 12-0-0-0 TAT 3/15/21 DPA 9-0-0
3rd Read 2/4/21 59-0-0-0-1
Prepared by Senate Research
March 16, 2021
ZD/SS/kja