Arizona HB 2367: neighborhood electric vehicles; VLT; exemption

Bill Text

HB2367 - 572R - H Ver 

 House Engrossed

 neighborhood electric 
 vehicles; VLT; exemption

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HOUSE BILL 2367

AN 
ACT

Amending section 28-5805, Arizona Revised 
Statutes; relating to neighborhood electric vehicles.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it 
enacted by the Legislature of the State of Arizona:

Section 1. Section 28-5805, Arizona Revised 
Statutes, is amended to read:

START_STATUTE28-5805. Motor vehicle powered by alternative fuel; classification; 
vehicle license tax; definitions

A. A separate classification of motor vehicles is 
established for purposes of taxation pursuant to article IX, section 11, 
Constitution of Arizona, that consists of motor vehicles that are powered by 
alternative fuel and for which the department issues an alternative fuel 
vehicle special plate or sticker pursuant to section 28-2416.

B. Notwithstanding section 28-5801, the 
registering officer shall collect at the time of application for and before 
registration of the motor vehicle that is classified under this section an 
annual license tax of $4 for each $100 in value.� The motor vehicle value is 
determined as follows:

1. For a motor vehicle that is registered in this 
state before January 1, 2022, the value of the motor vehicle is one percent of 
the manufacturer's base retail price of the motor vehicle.� After the first 
twelve months of the life of the motor vehicle as determined by its initial 
registration, the value of the motor vehicle is fifteen percent less for each 
twelve-month period than the value for the preceding twelve-month 
period.� 

2. For a motor vehicle that is initially registered 
in this state during a period beginning January 1, 2022 and ending December 31, 
2022, during the first twelve months of the life of the motor vehicle as 
determined by its initial registration, the value of the motor vehicle is 
twenty percent of the manufacturer's base retail price of the motor 
vehicle. During each succeeding twelve-month period, the value 
of the motor vehicle is fifteen percent less than the value for the preceding 
twelve-month period.

C. The registering officer shall collect the vehicle 
license tax on a motor vehicle that is powered by alternative fuel and that is 
initially registered from and after December 31, 2022 in accordance with 
section 28-5801.� The minimum amount of the vehicle license tax collected 
pursuant to this subsection must be in accordance with section 28-5801 and 
shall be distributed pursuant to section 28-5808, subsection B.

D. Except as provided in subsection C of this 
section, the minimum amount of the license tax computed under this section is 
$5 per year for each motor vehicle subject to the tax.

E. Except as specifically provided in this section, 
the vehicle license tax on a motor vehicle classified under this section is 
governed by this article.

F. For the purposes of this section:

1. "Alternative fuel":

(a) Has 
the same meaning prescribed in section 1-215.

2. "Motor vehicle":

(a) Means 
a vehicle that meets the safety standards of the national highway traffic 
safety administration. and 

(b) Includes: a NEIGHBORHOOD electric shuttle.

(a) (c) Does not include:

(i) a neighborhood 
electric vehicles vehicle that meet meets the standards prescribed in 49 
Code of Federal Regulations section 571.500. , except that, if a vehicle is designed to be operated at speeds 
of twenty miles per hour or less, the vehicle is not required to have a 
seventeen digit vehicle identification number.

(b) Neighborhood electric shuttles. 

(ii) a golf 
cart. END_STATUTE