HB2400 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-5606, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5606. Imposition of motor fuel taxes; tax holiday

A. In addition to all other taxes provided by law, a tax of eighteen cents $.18 per gallon is imposed on motor vehicle fuel possessed, used or consumed in this state.

B. To partially compensate this state for the use of its highways:

1. A use fuel tax is imposed on use fuel used in the propulsion of a light class motor vehicle on a highway in this state at the same rate per gallon as the motor vehicle fuel tax prescribed in subsection A of this section, except that there is no use fuel tax on alternative fuels.

2. A use fuel tax is imposed on use fuel used in the propulsion of a use class motor vehicle on a highway in this state at the rate of twenty-six cents $.26 for each gallon, except that there is no use fuel tax on alternative fuels and use class vehicles that are exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 are subject to the use fuel tax imposed by paragraph 1 of this subsection.

3. Through December 31, 2024, a use fuel tax is imposed on use fuel used in the propulsion of a motor vehicle transporting forest products in compliance with the requirements of section 41-1516 on a highway in this state at the rate of nine cents $.09 for each gallon, except that there is no use fuel tax on alternative fuels.

C. The motor vehicle fuel and use fuel taxes imposed pursuant to this section and the aviation fuel taxes imposed pursuant to section 28-8344 are conclusively presumed to be direct taxes on the consumer or user but shall be collected and remitted to the department by suppliers for the purpose of convenience and facility only. Motor vehicle fuel, use fuel and aviation fuel taxes that are collected and paid to the department by a supplier are considered to be advance payments, shall be added to the price of motor vehicle fuel, use fuel or aviation fuel and shall be recovered from the consumer or user.

D. Motor vehicle fuel and use fuel taxes imposed pursuant to this section on the use of motor vehicle fuel and use fuel and the aviation fuel taxes imposed pursuant to section 28-8344 on the use of aviation fuel, other than by bulk transfer, arise at the time the motor vehicle, use or aviation fuel either:

1. Is imported into this state and is measured by invoiced gallons received outside this state at a refinery, terminal or bulk plant for delivery to a destination in this state.

2. Is removed, as measured by invoiced gallons, from the bulk transfer terminal system or from a qualified terminal in this state.

3. Is removed, as measured by invoiced gallons, from the bulk transfer terminal system or from a qualified terminal or refinery outside this state for delivery to a destination in this state as represented on the shipping papers if a supplier imports the motor vehicle, use or aviation fuel for the account of the supplier or the supplier has made a tax precollection election pursuant to section 28-5636.

E. If motor fuel is removed from the bulk transfer terminal system or from a qualified terminal or is imported into this state, the original removal, transfer or importation of the motor fuel is subject to the collection of the tax. If this motor fuel is transported to another qualified terminal or reenters the bulk transfer terminal system, the subsequent sale of the motor fuel on which tax has been collected is not subject to collection of an additional tax if proper documentation is retained to support the transaction.

F. Notwithstanding subsection A of this section, a motor vehicle fuel tax is not imposed beginning at 12:00 a.m. on May 1 and ending at 11:59 p.m. on September 30 of each year for motor vehicle fuel that is purchased, sold, possessed, used or consumed in area A as defined in section 49-541 or area C as defined in section 3-3401. A vendor shall not add to the price of motor vehicle fuel and shall not recover from the consumer or user an amount to cover, or designated as, motor vehicle fuel tax during the time period and in the areas prescribed by this subsection. Any amounts erroneously or improperly collected as motor vehicle fuel tax must be remitted to the department. The reporting requirements for suppliers of motor vehicle fuel, including the requirements in chapter 16, article 1 of this title, remain in effect for all vendors in all locations in this state at all times. END_STATUTE

Sec. 2. Section 28-6951, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6951. Five year transportation facilities construction program; departmental committee

A. The director shall develop a five year transportation facilities construction program according to the policies established by the board.

B. To aid in the development of the five year transportation facilities construction program, the director shall appoint a departmental committee that is responsible to the director. The departmental committee is subject to title 38, chapter 3, article 3.1. The department or the departmental committee may not recommend a priority for a TRANSPORTATION construction project based on the amount of motor vehicle fuel tax or use fuel tax that a county contributes toward deposit in the state highway fund.

C. The departmental committee shall:

1. Recommend priorities on transportation facilities construction projects to be constructed by this state that may include any relevant criteria for the development of priority recommendations for the construction and development of transportation facilities to be constructed by this state.

2. Update and prepare annually a long-range statewide transportation facilities construction program covering the following five fiscal years for submission to the board as follows:

(a) The first year of the five year program shall consist of the highest priority transportation facilities construction projects that with reasonable certainty can be advertised for public bidding.

(b) The committee shall group proposed projects for the four remaining years of the five year program by the year it is estimated construction will begin and in order of their priorities.

(c) The committee shall provide the estimated cost of the program for each year that is approximately equal to the revenues estimated to be available for transportation facilities construction purposes during that year.

3. Review priority changes in or introduction of new projects to a proposed or an adopted five year program that the board has requested and make recommendations in a written report to the board on the requested priority changes or introduction of new projects based on a study of the criteria and policy that establish the priorities of projects.

4. Review the adopted five year transportation facilities construction program from time to time during the fiscal year and make recommendations in a written report to the board for priority changes in or introduction of new projects to the program based on a study of the criteria and policy that establish the priorities of projects.

5. Review and make recommendations to the board for applications submitted pursuant to section 28-339.

6. Fully document its recommendations in the written reports required by this section.END_STATUTE

Sec. 3. Title 28, chapter 20, article 4, Arizona Revised Statutes, is amended by adding section 28-7012, to read:

START_STATUTE28-7012. State highway user revenue fund distribution; local government

For each FISCAL year, the department shall allocate and transfer $72,600,000 in the state highway fund as follows:

1. $27,588,000 to the counties.

2. $39,930,000 to the cities and towns.

3. $5,082,000 to cities and towns with a POPULATION of three hundred THOUSAND or more persons. END_STATUTE

Sec. 4. Exemption from rulemaking

The department of transportation is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for one year after the effective date of this act to adopt administrative rules regarding the implementation of this act.

(ENACTED WITHOUT THE EMERGENCY)

Sec. 5. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.