AZ SB1197

Imposes a vehicle mileage tax of one cent per mile on electric vehicles driven on Arizona highways.

Requires the Department of Transportation to collect the tax and adopt implementing rules.

Tax rate automatically increases annually on December 31 based on the average annual percentage increase in the GDP price deflator from the two most recent complete state fiscal years.

Defines "electric vehicle" as a vehicle propelled by electrical energy from rechargeable batteries or external sources and incapable of being powered by motor vehicle fuel.

Includes revenues from the vehicle mileage tax in the definition of "highway user revenues" under Arizona Revised Statutes, requiring a two-thirds vote for enactment.