AZ SB1160

Amends section 28-5606 to allow counties to levy a tax by ordinance on wholesale motor vehicle fuel sold in the county, not to exceed three percent of total sales, with tax applying only to fuel resold at retail.

Adds new section 28-6535 requiring the Department of Transportation to allocate and transfer county fuel tax revenues from the Arizona highway user revenue fund to the collecting county by June 15 of each fiscal year, with counties transferring funds to their council of governments for distribution.

Extends the use fuel tax rate for motor vehicles transporting forest products from the current rate through December 31, 2024, and allows counties to similarly tax wholesale use fuel at up to three percent.

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 section 28-5606 (the new county fuel tax authority).