SB 1636
Initials VP/MG Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: FICO DPA 6-0-1-0 | 3
rd
Read 28-0-2-0-0
House: WM DP 10-0-0-0
SB 1636: excise tax; jet fuel; definition
Sponsor: Senator Carroll, LD 28
House Engrossed
Overview
Expands the definition of jet fuel.
History
Jet fuel is defined as crude oil or any fraction of crude oil which is liquid at 60 degrees
Fahrenheit and 14.7 pounds per square inch absolute, and petroleum-based substances
comprised of a complex blend of hydrocarbons derived from crude oil through processes of
separation, conversion, upgrading and finishing, such as motor fuels, residual fuel oils,
lubricants, petroleum solvents and used oils when these products are expressly
manufactured and blended for the purpose of effectively and efficiently operating jet or
turbine powered aircraft (A.R.S. § 42-5351).
An excise tax is levied on every person engaging or continuing in the business of the retail
sale of jet fuel. The first 10 million gallons of jet fuel are taxed at a rate of 3.05 cents per
gallon. From and after June 30, 1994, any amounts over 10 million gallons of jet fuel are not
subject to tax (A.R.S. § 42-5352).
Jet fuel which is sold in Arizona to commercial airlines and used on flights which originate
in Arizona and whose first outbound destination is outside the United States is exempt from
the excise tax (A.R.S. § 42-5354).
Provisions
1. Expands the definition of jet fuel to include:
a) an aviation turbine fuel that consists of conventional and synthetic blending
components that can be used without the need to modify aircraft engines and existing
fuel distribution infrastructure; and
b) jet fuels derived from coprocessed feedstocks at a conventional petroleum refinery.
(Sec. 1)
2. Applies to taxable periods beginning on or after the first day of the month following the
general effective date. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note