AZ SB1332

Amends the vehicle license tax for alternative fuel vehicles, changing the valuation method for vehicles registered before January 1, 2022 from a percentage set by the director to one percent of the manufacturer's base retail price.

Establishes a reduced tax rate for alternative fuel vehicles registered between January 1, 2022 and December 31, 2022, valued at 20 percent of manufacturer's base retail price during the first 12 months, then declining 15 percent annually.

Requires alternative fuel vehicles purchased after December 31, 2022 to be taxed under standard vehicle license tax provisions in section 28-5801.

Maintains a minimum annual license tax of $5 per vehicle for alternative fuel vehicles subject to the special tax calculation.

Effective date is December 31, 2019.