Arizona Gas Tax: A Breakdown of Rates and Refunds
Explore the financial mechanics of Arizona's fuel tax, from its role in funding transportation to the provisions available for tax reimbursement.
The Arizona gas tax is a state excise tax on motor fuels intended to generate revenue for maintaining the state’s transportation infrastructure, including highways and bridges. This tax is collected from fuel distributors, but the cost is passed on to consumers and included in the price at the pump. It functions as a user-fee system, where those who use the roads contribute to their upkeep.
Components of Arizona’s Fuel Tax
When purchasing gasoline in Arizona, the total price includes several taxes from both state and federal governments. The primary component is Arizona’s motor vehicle fuel tax, set at a rate of $0.19 per gallon. This is a flat excise tax applied to each gallon sold in the state.
In addition to the state tax, consumers pay a federal excise tax of $0.184 per gallon on gasoline. This revenue is collected for the federal Highway Trust Fund, which finances transportation projects nationwide.
Another component is the Underground Storage Tank (UST) tax, a state-level tax of one cent per gallon. The UST tax is used to fund the cleanup of leaking underground fuel storage tanks and protect groundwater sources. All of these taxes are embedded in the retail price paid by drivers.
Allocation of Gas Tax Revenue
Revenue from Arizona’s state fuel taxes is directed into the Highway User Revenue Fund (HURF). This fund is the mechanism for distributing money collected from fuel taxes, vehicle license taxes, and other related fees to the government entities responsible for public roads.
The distribution of HURF money follows a formula established by state law. The Arizona Department of Transportation (ADOT) is a major recipient, using its share for the planning, construction, and maintenance of the state highway system, including interstates and state routes.
A significant portion of the revenue is also allocated to local governments. Counties receive a share of HURF funds to manage their road networks, including secondary and rural roads. Incorporated cities and towns also receive a percentage to fund the maintenance and improvement of local streets and bridges.
Information Needed for a Fuel Tax Refund
Certain fuel consumers in Arizona are eligible for a refund of the state excise tax. Eligibility is limited to fuel used for purposes other than propelling a motor vehicle on public highways. Eligible groups include operators of vehicles for off-road agricultural purposes and non-profit organizations providing transportation for students.
To claim a refund, you must provide original fuel purchase invoices or receipts. These must be itemized to show the date of purchase, seller’s name and address, number of gallons purchased, and the price per gallon. You also need detailed records of off-highway usage, such as mileage logs or equipment hour meters, to substantiate the claim.
The claim is made using a refund application form from the Arizona Department of Transportation (ADOT). This form requires the claimant’s name and address, vehicle or equipment identification numbers, and a detailed schedule of fuel purchases that corresponds to the submitted invoices and logs.
How to File for a Refund
The Arizona Department of Transportation (ADOT) recommends filing electronically through its AZ MVD NOW online portal for a quicker process. Alternatively, claims can be submitted by mailing the completed application and supporting documents to the Motor Vehicle Division.
There are deadlines for submitting a refund claim. For individuals or entities not licensed as fuel suppliers, the application must be filed within six months of the fuel’s sale date. Licensed suppliers have a longer window, with a deadline of three years from the purchase date.
After the claim is submitted, the ADOT Motor Vehicle Division will review the documentation. If the claim is approved, the refund is issued to the applicant.