AZ HB2367

Creates new retail motor vehicle fuel classification under transaction privilege tax with 8% tax rate on sales of motor vehicle fuel (gasoline, diesel, propane, natural gas, hydrogen) sold for vehicle/watercraft use, effective January 1, 2019

Moves motor vehicle fuel taxation from title 28 (fuel tax) to title 42 (transaction privilege tax system), consolidating fuel tax collection and administration under the department of revenue

Modifies vehicle license tax rates and structure, adds $100 annual surcharge for alternative fuel vehicles, and establishes new distribution of vehicle license tax revenues including deposits to off-highway vehicle recreation fund and state aviation fund

Removes prior motor fuel tax chapters and repeals related provisions in title 28, chapters 16 and 17, while updating cross-references throughout Arizona Revised Statutes to reflect consolidated fuel taxation system

Preempts local taxation of motor vehicle fuel sales to state level only, prohibiting counties, cities, and towns from imposing additional fuel taxes or fees on retail motor vehicle fuel classification