AZ HB2536

Increases motor vehicle fuel tax rates beginning FY 2019-2020: $.28 per gallon (FY 2019-2020), $.38 (FY 2020-2021), and $.43 (FY 2021-2022), with automatic adjustments thereafter based on gross domestic product deflator.

Imposes use fuel taxes on natural gas and propane at specified rates per gallon for light and use class motor vehicles, with similar phase-in and adjustment provisions as motor fuel taxes.

Establishes annual registration fees for electric vehicles ($130-$198 per year depending on fiscal year) and hybrid vehicles ($52-$80 per year) to compensate for highway use.

Tax rates for all fuels and vehicle types automatically adjust annually beginning FY 2022-2023 based on changes in the gross domestic product implicit price deflator.

Requires two-thirds vote in both houses of the legislature and governor's signature for enactment per Arizona Constitution.