Arizona Senate Bill SB1471

Arizona 2025 Regular Session

• Introduced: 2/4/25

Caption

Electric vehicles; gas tax equivalent

Impact

The proposed tax would require that electric vehicles under a specific weight limit pay an equivalent tax based on their kilowatt-hour usage or an average comparable to traditional motor vehicles. This change not only addresses concerns regarding lost revenue from fuel taxes as electric vehicle adoption increases but also aligns with legislative intent to maintain highways. By implementing this measure, the state aims to create a level playing field between fossil fuel-powered and electric vehicles regarding their financial contributions to infrastructure upkeep.

Summary

SB1471, introduced by Senator Farnsworth, amends section 28-5606 of the Arizona Revised Statutes to establish a framework for imposing taxes on electric and alternative fuel vehicles. The bill aims to ensure that these vehicles contribute proportionately to the costs incurred for highway maintenance, similar to those using traditional motor fuels. Currently, a tax of eighteen cents per gallon is imposed on motor vehicle fuel, alongside specific taxes on fuels used in different vehicle classes, but alternatives like electric vehicles have been exempt from such taxes. SB1471 seeks to close this gap by proposing a tax based on the energy usage of electric vehicles, ensuring a more equitable contribution to road use and maintenance funds.

Contention

There may be notable discussions among legislators regarding the fairness and feasibility of this tax framework. Some advocates may argue that taxing electric vehicles could hinder their adoption, which runs counter to broader energy and environmental goals. Furthermore, opponents might express concerns about implementation challenges, particularly in accurately measuring energy consumption to ensure a fair assessment and tax collection process. The specifics of how the tax will be calculated and enforced are likely to generate debate, as lawmakers balance the need for infrastructure funding with incentivizing the move towards cleaner transportation alternatives.