 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
neighborhood electric vehicles; VLT; exemption
Purpose
Modifies the definition of motor vehicle, for the purposes of the alternative fuel vehicle license tax (VLT), to exclude golf carts and neighborhood electric vehicles.
Background
At the time of application for and before registration of the motor vehicle, the registering officer must collect an annual VLT of $4 for each $100 in value. Statute prescribes procedures to determine the VLT for a motor vehicle that is powered by alternative fuel based on the vehicle's retail price and age (A.R.S. § 28-5805).
Federal law specifies requirements for a vehicle to qualify as a low-speed vehicle, including setting a maximum speed of 25 miles per hour and requiring the vehicle to be equipped with: 1) head lights, tail lights and brake lights; 2) turn signals; 3) reflex reflectors; 4) a parking brake; 5) a windshield; 6) a vehicle identification number; and 7) a type 1 or type 2 seatbelt (49 C.F.R. § 571.500).
A motor vehicle is a vehicle that meets the safety standards of
the National Highway Traffic Safety Administration and includes: 1)
neighborhood electric vehicles that meet federal regulations, except that if a
vehicle is designed to be operated at speeds of 20 miles per hour or less, the
vehicle is not required to have a 17-digit vehicle identification number; and
2) neighborhood electric shuttles (A.R.S.
§ 28-5805).
Alternative fuel is electricity, solar energy and liquefied petroleum gas, natural gas, hydrogen or blend of hydrogen with liquefied petroleum or natural gas (A.R.S. § 1-215).
The Joint Legislative Budget Committee fiscal note on H.B. 2367 estimates a decrease to VLT revenue collections of $72,300 on an ongoing basis beginning in FY 2027 (JLBC).
Provisions
1. Excludes, from the definition of motor vehicle, alternative fuel golf carts and neighborhood electric vehicles that federally qualify as a low-speed vehicle.
2. Makes technical changes.
3. Becomes effective on the general effective date.
House Action
TI 2/4/26 DP 6-0-1-0
3rd Read 2/26/26 40-13-7
Prepared by Senate Research
March 13, 2026
LMM/ci