AZ SB1250

Establishes a three percent cap on county-imposed taxes on wholesale motor vehicle fuel and wholesale use fuel sold within the county, applicable only to fuel intended for retail resale.

Requires the Department of Transportation to allocate and transfer county fuel tax revenues to the county in which the tax was collected by June 15 of each fiscal year.

Mandates that counties transfer allocated fuel tax revenues to their council of governments, which then distributes the monies.

Adds clarifying language to Arizona tax code specifying that county fuel taxes are exempt from municipal transaction privilege and sales taxes under section 42-6004.