AZ HB2899

Imposes additional motor fuel taxes on gasoline, natural gas, propane, and electricity used in vehicles, with rates escalating from fiscal year 2020-2021 through 2022-2023, then adjusted annually for inflation based on GDP deflator.

Establishes annual vehicle taxes on electric-only vehicles ($111-$166 per year depending on fiscal year) and hybrid vehicles ($45-$67 per year), adjusted annually for inflation starting in fiscal year 2023-2024.

Creates the Arizona Road Use Account within the highway user revenue fund to receive revenues from the new fuel and vehicle taxes, to be used exclusively for maintaining, preserving, and constructing streets, roads, and highways.

Requires the State Transportation Board to develop a comprehensive 20-year plan for road use account monies, updated every five years, with legislative review and public hearings that may recommend termination of the new fees.

Requires the Department of Transportation to study and report by December 31, 2025 on converting the electric vehicle tax from a flat rate to a per-kilowatt or per-gallon equivalent rate.