SB 1262 - Highway User Fee Replacement Task Force

• Establishes a 24-member Highway User Fee Replacement Task Force to develop alternative revenue sources to replace Arizona's motor vehicle fuel tax and use fuel tax, with membership proportionally distributed across Maricopa County (50%), Pima County (25%), and other counties (25%).

• Requires the Department of Transportation to develop and implement pilot programs by October 1, 2016, to test alternative methods for collecting highway use fees, including technology for vehicle identification, mileage reporting, and payment collection.

• Authorizes pilot program participants to pay highway use fees in lieu of motor fuel taxes, with the department able to issue emblems exempting participating vehicles from fuel tax collection and potentially compensating participants.

• Directs the Task Force to report to the legislature by October 1, 2015, on alternatives to fuel taxes and by December 15, 2015, determine the design of pilot programs and evaluation criteria.

• Allows the Department of Transportation to fund the Task Force and pilot programs using state highway fund monies and federal or private grants, with the Task Force and pilot program sections set to expire September 30, 2024.