alternative fuel tax

SB 1547 ensures that owners of alternative fuel vehicles (such as electric, propane, or natural gas-powered cars and trucks) pay a tax proportional to conventional vehicles for highway use. It removes the existing use fuel tax on alternative fuels but replaces it with new annual or usage-based fees: $120 yearly for light electric vehicles, $0.0143 per kilowatt-hour for heavy electric trucks, and equivalent fees for other alternative fuels. These fees are calculated to match the tax burden conventional vehicles pay per gallon of fuel (18 cents for light vehicles, 26 cents for heavy vehicles). The bill directly affects all owners of alternative fuel vehicles operating in Arizona, requiring them to pay these fees instead of per-gallon fuel taxes.