Diesel fueling in Arizona

[geo]

I got the following information yesterday from the Escapees RV Club (from Jim Koca, Advocacy Director):

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Arizona fuel-tax rates are different from what we may be used to while traveling throughout the United States. This fuel law has been on the books for several years. The law states:

The Arizona tax on gasoline (motor vehicle fuel) is 18 cents per gallon. Use fuel (diesel) is taxed at two rates in Arizona.

-If the use fuel is used in the propulsion of a use class motor vehicle on a highway in this state, the tax rate is 26 cents for each gallon.

-A "use class motor vehicle" means a motor vehicle that uses use fuel on a highway in this state and that is a road tractor, truck tractor, truck or passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 pounds or having more than two axles.

I talked to the Revenue & Fuel Tax Administration Fuel Tax Manager in Phoenix, Az, and asked for the definition of the "passenger carrying vehicle" and he stated that would include a motor home. What this means is those who have a vehicle that has three or more axles or a declared gross vehicle weight rating of 26,001+ lbs are required to use the truck lanes and pay the higher fuel tax. The regular diesel tax is 18 cents. Filling the RV at the regular pumps will subject you to a citation with a steep fine. Arizona has a Fuel Tax Evasion Unit that monitors the filling of vehicles at fuel stations.
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Though most Keystone RVs with TV are combined less than 26,000 pounds, they are more than two axles total.

I find it very unsettling that Arizona would lump RVs in the same road use category as commercial trucks! And require that RVs pay the same "road use tax" as the larger commercial trucks!

I hope that I am reading this incorrectly, but somehow it does appear that I am not.

Ron

[SAABDOCTOR]

Still got ya beat here in "The Tax U to Death state" of Connecticut!

[hankpage]

Originally Posted by geo

I got the following information yesterday from the Escapees RV Club (from Jim Koca, Advocacy Director):

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+++++++++++++++

Though most Keystone RVs with TV are combined less than 26,000 pounds, they are more than two axles total.



Ron

Drop trailer and fuel just the TV .... no problem.
But I think the person you spoke to was not correct and not giving "NOT FOR HIRE" info confusing "Passenger" and "Passenger carrying" vehicles. But I have been wrong before, so, JM2¢, Hank

[vampress_me]

We have them beat here in The land of 10,000 taxes too.

But this brings up another question I hope someone can answer - what is the definition of vehicle? To me, the way that is written it wouldn't include a trailer (5'er or TT) because the vehicle is just the truck, so therefore most trucks have only 2 axles and aren't over the weight limit stated. My hubby and I have this discussion and don't know the answer every time I take him to the airport. We go down I-35E in St. Paul and the one section of the interstate (the training freeway) signs say no vehicle over 9000 GVW, not gross vehicle combined weight. So, to our way of thinking, our truck at 8800 lbs and 5'er at 8000 lbs should be no problem since it doesn't say combined. But, it's that definition of vehicle...

[outwest]

Originally Posted by vampress_me

We have them beat here in The land of 10,000 taxes too.

But this brings up another question I hope someone can answer - what is the definition of vehicle? To me, the way that is written it wouldn't include a trailer (5'er or TT) because the vehicle is just the truck, so therefore most trucks have only 2 axles and aren't over the weight limit stated. My hubby and I have this discussion and don't know the answer every time I take him to the airport. We go down I-35E in St. Paul and the one section of the interstate (the training freeway) signs say no vehicle over 9000 GVW, not gross vehicle combined weight. So, to our way of thinking, our truck at 8800 lbs and 5'er at 8000 lbs should be no problem since it doesn't say combined. But, it's that definition of vehicle...

I know that section of hwy and avoid it because I've heard rumors of ppl with travel trailers getting tickets there. Only rumors, but. . .

regarding the OP - I think Hank's onto something there with the passenger carrying thing. Sounds like it's intended for those that have to have CDL or a chauffeur's license

[rnkburg]

I haven't had the pleasure of towing thru Arizona but i have found that when I tow on long trips I put the 110 gallon transfer tank in the truck to avoid situations just like that. I keep it topped off where fuel is cheaper and have a very long range when needed


Sent from my iPhone using Tapatalk

[theeyres]

I live in AZ and never heard of any of this. I regularly travel with friends with diesel pushers and none of them worry about any of this. We all just stop where ever and fill up. I think your source is confusing RV's with commercial vehicles. I would sure double check that info before it gets spread around. I just don't believe it applies.

On edit--why do we have RV lanes at many of the big stations? They tax at the lower rate.

[Ken / Claudia]

Fuel tax's. So this is Oregon, the state gas/diesel fuel tax for vehicles is 1 rate, farm (off road) another rate, 26001 lbs+ vehicles again another rate. State fuel tax's are for vehicles used on the roadways(right). Now boats, thousands of them in Oregon, they not driven on the roadways (right) only on water. But, the fuel stations on water or at the corner street MUST charge the state roadway fuel tax's. Than the Oregon State Marine Board tells OR DOT how many boats are licensed and guesses how much fuel they all use yearly. OR DOT gives the Marine board that much money back so, OR says boats are not paying the state fuel tax. That's the facts. Although it is wrong and does not make sense, it does make money for the state.

[bsmith0404]

I believe they are looking at vehicles registered at more than 26,000 lbs. Commercial vehicles registered at 26,001 or more you are required to pay fuel taxes and file additional forms. Those who drove commercial trucks can explain that better. Since most of us will have our trucks registered with 26,000 plates or less, it should not be a problem fueling in the other lanes..

[geo]

Looks like there has been more clarification from AZDOT:

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Since our news bulletin dated October 14, 2014, the Arizona fuel tax issue has blasted across the RV community and social media sites. These regulations need to be scrutinized and clarifications made. If they were not so convoluted, we would not have been misinformed, RVers would not have been incorrectly cited, stickers on fuel pumps would not be misleading, and the RVing public would immediately know which pump to use when fueling in Arizona.

At this point, the best advice we can offer is a quote from Ryan Harding with the Arizona Department of Transportation:

Arizona does have a dual-tiered diesel tax system. The issue of which tax tier one fits into comes down to whether you are using your vehicle for commercial purposes or personal leisure.
RV owners who are using their RVs for personal pleasure can fill up with diesel fuel that is taxed at $0.18 per gallon. As long as it's being used for personal use, weight limits do not apply.

If the RV is being used for commercial use or the furthering of a business and weighs more than 26,000 pounds, then the driver must fill up with diesel fuel taxed at $0.26 per gallon. Any situation where the RV is being used to help an individual or a business make money can be defined as commercial use. Examples of this include, but are not limited to, an RV that is registered to a business, such as an LLC, or a musical group using an RV to travel to venues to play for money.

So, to reiterate, the 26,000 pound weight limit only applies if the RV is being used to help further a business or commercial enterprise.
All diesel pumps in Arizona have ADOT warning labels which direct the consumer on the specific tax rate at that pump and legal requirements for using the lower taxed fuel.

If the RV owner fills up at diesel pumps taxed at the higher rate, but they qualify for the lower tax rate, they can contact the gas retailer and request an $0.08 per gallon refund.

The fine for fuel tax evasion in Arizona is $1,000 or $10 per gallon pumped, whichever is greater.

Thanks,
Ryan Harding
Arizona Department of Transportation
Office of Public Information
602.712.8111 (office)
[email protected] (media)
azdot.gov


I would like to thank Greg Gerber with RV Daily Report for furnishing the above information.

In summary, the information that I received in September from the Arizona Revenue and Fuel Tax Administration office was not entirely correct. Non-commercial motor homes and 5th -wheels used for personal leisure are exempt from the higher fuel tax. In the meantime, we will continue to push for cleaner and clearer policies so that the general RVing public understands what they should be doing to meet the laws of Arizona.

I hope this has clarified any problems with the Arizona fuel tax laws. If for some reason you fill up at the $.26 fuel tax pumps, be sure to go back inside and request your refund of the $.08 per gallon.

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Ron

[Ken / Claudia]

Geo, Thanks for posting that information. And it does make sense to me, personal use RVers do not pay the comm, vehicle fuel tax.

[theeyres]

Glad to hear that is all clarified, Geo. That's what I thought. I hate to see AZ maligned about taxes when it is simply not true.

[geo]

Earl & Ken -

I agree. When I first got that email from the Escapees, I thought someone was either crazy or someone didn't convey enough information. Then I started chuckling to myself thinking of AZDOT running around the BLM area outside Quartzite this winter checking "diesel receipts"! Actually (laughing again), that scenario might have been quite entertaining!

Ron

[bobbecky]

My thought was the same. We are in Sun City right now, and just seeing all the diesel trucks and motor homes, and imagining all the RV parks empty because no one is going to pay the higher tax for their rigs, the state of Arizona wood go broke with the loss of tourist dollars. There are quite a few not brilliant politicians, but none would be that stupid to risk that large a loss of revenue by alienating the RV community.

[byrdr1]

Come to NC one of the highest fuel taxes in the US. doesn't matter what you are driving you pay the same(even your lawn mower). Except off road diesel. 37.5¢ per gallon plus the federal fuel ax rate.
randy

[hankaye]

Howdy All;

Reckon we get read by some more folks than we thought...
Found this in the RVtravel.com Weekly News Letter (good source of info).
Russ and Tina DeMaris write a column for it and guess what this
weeks topic is??

Here is a difinative answer for this question;

"
Tuesday, October 14, 2014
Arizona fuel tax rumor goes viral -- here's the real story
A memo circulating among the full-time RVers group, Escapees, has gone viral, creating no end of confusion regarding Arizona diesel fuel taxes. The memo, picked up by at least one RV forum early October 14, would make it appear that motorhome owners who have a rig with a gross vehicle weight rating of more than 26,000 pounds, or having three or more axles, must fuel at commercial truck islands, and pay a higher tax rate than other RVers. We contacted the Arizona Department of Transportation for clarification, and want to set the record straight.

What confuses the issue is the two-tier tax system the Grand Canyon State uses on diesel road fuel sales. If you stop at a diesel fuel pump at any station in Arizona, you'll find a warning sticker that suggests you can be subject to a $1,000 minimum fine if you improperly use the lower taxed (18 cents per gallon) diesel fuel intended for 'small trucks.' The sticker even mentions the 26,000 pound/3 or more axle "rule."

But there's a lot more in the details. We spoke with Arizona Department of Transportation Fuel Tax Manager, Chris Kent on Wednesday the 14th. Kent was able to dig through the finer points of the fuel tax law. Basically the whole issue hinges on two different state statutes. One (28-54320) speaks to "weight fees." The other, (28-5606) specifies what vehicles must pay the higher motor fuel tax. In a nutshell, the motor fuel tax statute says any, "use class motor vehicle" used on Arizona roadways must pay the higher tax. What makes a "use class motor vehicle"? The devil is in the details.

Of interest to RVers, particularly motorhome owners, is this simple exemption from what makes a "use class motor vehicle." First, for all RVers, provided your rig has a gross vehicle weight rating of 26,000 pounds or less and has but two axles, you're exempt from "use class," and hence, exempt from paying the higher tax rate on fuel.

For motorhomes, Arizona DOT's Kent pointed us to a 2004 agency policy memo, number 13.2.3. Boiled down, the policy says as long as a motorhome has at least four of the following items, it is exempt from "use class" (and higher fuel taxes). Those items include:

"A cooking facility with an on-board fuel source,
"A gas or electric refrigerator
"A toilet with exterior evacuation
"A heating or air-conditioning system with an on-board power or fuel source separate from the vehicle engine
"A portable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection
"A 110-125 volt electric power supply"

If you've got at least four of those things, even if your motorhome has a weight rating of more than 26,000 pounds and/or more than three axles, your rig is NOT a "use class" motor vehicle, and thus does NOT have to pay the higher fuel tax rate. One last detail: For your motorhome to meet the 'lower fuel tax use OK' test, it must be used for recreational purposes. If used for commercial purposes, once you hit over 26,000 pounds and/or more than two axles, you are stuck paying the higher tax rate. "

hankaye

PS. Here's a link to their blog site;
http://rvarizona.blogspot.com/2014/1...ral-heres.html