ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA 6-4-0-0

HB 2400: motor fuel tax holiday

Sponsor: Representative Willoughby, LD 13

Caucus & COW

Overview

An emergency measure that suspends the motor vehicle fuel tax from May 1 to October 1 each year, in certain areas.

History

The Arizona Department of Transportation (ADOT) imposes an 18 cents per gallon tax on motor vehicle fuel that is possessed, used or consumed in the State. The motor vehicle fuel tax is presumed to be direct tax on the consumer but is required to be collected and remitted to ADOT by suppliers of motor vehicle fuel for the purpose of convenience and facility (A.R.S. § 28-506).

Area A is a section of Arizona, in Maricopa and parts of Pinal County, with restrictions in place to reduce air pollution (A.R.S. § 49-541).

Area C is the portion of Pinal county lying west of range 11 east, excluding that portion of the county lying within Area A and the portion of the county within the jurisdiction of any federally recognized Indian tribe, notwithstanding the issuance of a patent and including rights-of-way running through the reservation (A.R.S. § 3-3401).

Provisions

1. Suspends the motor vehicle fuel tax in Area A and Area C from May 1 to October 1 each year. (Sec. 1)

2. Prohibits a vendor from:

a. adding to the price of motor vehicle fuel; and

b. recovering from consumers or users an amount to cover motor vehicle fuel tax during the suspension. (Sec. 1)

3. Requires any amounts erroneously or improperly collected as motor vehicle fuel tax to be remitted to ADOT. (Sec. 1)

4. Stipulates that mandatory reporting requirements for all suppliers of motor vehicle fuel remain in effect. (Sec. 1)

5. Mandates ADOT to allocate and transfer $76,600,000 in the Arizona Highway User Revenue Fund in the following amounts:

a. $27,588,000 to the counties;

b. $39,930,000 to the cities and towns; and

c. $5,082,00 to cities and towns with a population of 300,000 persons or more. (Sec. 2)

6. Exempts ADOT from rulemaking requirements for one year to adopt rules regarding implementation of this act. (Sec. 4)

7. Contains an emergency clause. (Sec. 5)

8. Makes technical changes. (Sec. 1)

Amendments

Committee on Natural Resources, Energy and Water

1. Replaces the Arizona Highway User Revenue Fund with the State Highway Fund as it relates to ADOT allocating and transferring funds outlined in this act. (Sec. 3)

2. Prohibits ADOT or the Departmental Committee that recommends priorities on transportation facilities construction projects, from recommending a priority for a transportation construction project based on the amount of motor vehicle fuel tax or use fuel tax that a county contributes to toward the State Highway Fund. (Sec. 2)

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6. Initials CW HB 2400

7. 1/30/2026 Page 0 Caucus & COW

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