AZ SB1264

Authorizes counties to levy an excise tax of up to 3% on wholesale motor vehicle fuel and wholesale use fuel sold within the county, applicable only to fuel intended for retail resale.

Requires the Arizona Department of Transportation to allocate and transfer fuel tax revenues collected from county-imposed taxes to the respective county by June 15 of each fiscal year, with the county transferring funds to its council of governments for distribution.

Amends section 42-6004 to clarify that cities and towns cannot levy taxes on natural gas or liquefied petroleum gas used to propel motor vehicles, except as provided in the county fuel tax statute.

Maintains the state motor vehicle fuel tax at 18 cents per gallon and preserves existing use fuel tax rates for different vehicle classes.