AZ HB2166

Establishes a new annual highway safety fee collected at vehicle registration, with the amount determined by the director of public safety annually to fund 110% of the Arizona Highway Patrol budget minus any prior unencumbered balance exceeding 10%.

Creates a separate vehicle classification for motor vehicles powered by alternative fuel with reduced license tax rates: vehicles purchased before January 1, 2020 pay tax on one percent of manufacturer's base retail price initially, then 15% less annually; vehicles purchased on or after January 1, 2020 pay on 30% of base retail price initially for vehicles 10,000 pounds or less.

Exempts the Department of Public Safety from standard rulemaking requirements (Title 41, Chapter 6) when determining the highway safety fee amount.

Directs all highway safety fee monies to the Arizona Highway Patrol Fund established in section 41-1752.

Specifies that alternative fuel vehicle tax provisions take effect December 31, 2019, and expresses legislative intent that alternative fuel vehicle values not exceed 10% of manufacturer's base retail price.