AZ SB1146

Creates a new highway safety fee collected annually at vehicle registration, to be determined by the director, with all revenues deposited into the Arizona highway patrol fund to fully fund 110 percent of the highway patrol budget minus any unencumbered balance exceeding 10 percent of prior year deposits.

Exempts the Department of Public Safety from rulemaking requirements when determining the highway safety fee amount.

Modifies vehicle license tax for alternative fuel vehicles by establishing different valuation methods: vehicles purchased before January 1, 2020 use a director-set percentage of manufacturer's base retail price; vehicles purchased on or after January 1, 2020 and weighing 10,000 pounds or less use 30 percent of manufacturer's base retail price for the first 12 months, then decrease 15 percent annually.

Applies standard vehicle license tax (section 28-5801) to alternative fuel vehicles exceeding 10,000 pounds gross vehicle weight purchased on or after January 1, 2020.

Establishes legislative intent that the director set alternative fuel vehicle values at no more than 10 percent of manufacturer's base retail price.