AZ SB1146

Adds a vehicle registration fee for vehicles not exclusively powered by fuel subject to motor fuel taxes, equal to the average annual fuel tax paid by standard vehicles, to be determined by the director each February.

Imposes a new tax on natural gas used for vehicle propulsion, with tax rates set annually by the director to be equivalent to motor fuel taxes based on energy content.

Repeals the alternative fuel vehicle tax credit (section 28-5805) and modifies vehicle license tax rates for trailers and noncommercial trailers to include portions directed to the Arizona highway patrol trust fund.

Establishes the Arizona highway patrol trust fund to receive vehicle license tax revenues for highway patrol operations and administration.

Creates transportation reinvestment zones allowing counties, cities, and towns to designate areas and use captured property tax increment revenues to fund transportation projects.