AZ SB1245

Amends section 42-5061 to remove the sales tax exemption for blends of gasoline with ethanol, including the ethanol blend E85, making these fuel blends subject to transaction privilege tax.

Amends section 42-5159 to remove the use tax exemption for ethanol fuel blends, including E85, making them subject to use tax in Arizona.

Changes the language regarding motor vehicle fuel and use fuel to clarify that the exemptions do not apply to ethanol-blended gasoline products.

Requires a two-thirds affirmative vote in both houses of the legislature for passage and becomes effective immediately upon the governor's signature or upon a three-fourths vote override of a gubernatorial veto.