Federal & State Regulations | Motor carrier fuel/Highway use/Mileage tax - Arizona

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
Has three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

Arizona doesn't require gas units to report. However, if Arizona based gasoline units enter other IFTA jurisdictions that do require them to report, an IFTA license is required and an IFTA tax report must be filed.

IFTA fees

IFTA license, $10; No fee for decals

Temporary decal permit

Not available. Carrier must obtain permanent decals by mailing in or walk-in to state office.

Fuel use tax

Arizona plated vehicles operating intrastate (within Arizona only) are not required to obtain fuel credentials or file reports.

Vehicles are considered reportable if considered a qualified vehicle under IFTA requirements. These vehicles are issued IFTA credentials and are reportable through IFTA.

Highway use taxes-motor carrier tax

Effective October 1, 1997, Arizona repealed their Motor Carrier License Tax and replaced it with an annual Motor Carrier Fee payable at the time of vehicle registration.

Tax refunds or credits

IFTA

Arizona authorizes a $0.02 per gallon tax credit on use fuel purchases made in Arizona but consumed in another IFTA jurisdiction. Arizona-based IFTA carriers can claim the $0.02 credit on their Arizona quarterly IFTA returns. Carriers based outside Arizona can claim the credit by requesting a refund from Arizona. If the refund amount due is over $10 but less than $50, a refund request can be filed after six months. If the refund amount is over $50, the request can be filed quarterly. Refunds can be requested for up to three years.

Use fuel gallons that do not qualify for the $0.02 credit are:

Use fuel gallons consumed while the IFTA-qualified vehicle is off-highway;
Use fuel gallons consumed in a non-member IFTA jurisdiction; or
Use fuel gallons consumed while the vehicle was operating under a temporary permit.

PTO/Reefer/Off-highway/Idling

Arizona will allow refunds for tax-paid fuel used off-highway or in either reefer or power take-off units. Arizona also issues refunds for idle time.

Statute of limitations on applying for the refund is three years from date of first receipt for an IFTA carrier, otherwise only six months.

Applications for refunds less than $10 will be accepted only once within a consecutive six-month period (if the aggregate monthly total of a request for refund is less than $10, the applicant may combine several month's totals on one request for a refund).

Off-highway usage

The Arizona Motor Vehicle Division will refund the Arizona motor fuel tax paid on the motor fuel consumed in Arizona while the vehicle is off-highway. An application for a refund must include the following supporting documentation:

System or manual motor fuel log summary by vehicle identification number (VIN) which includes a fuel log summary and the mileage consumed off-highway;
Equipment and vehicle listing which includes year, make, model, gallon capacity; and
Proof of fuel purchase which may include motor fuel invoices, motor fuel purchase receipts, computerized fuel purchase statements, and IFTA reports.

Refrigeration units

If claiming a refund for a refrigeration unit, documentation submitted must include:

A fuel log summary consisting of the fuel type, date fuel was dispensed, number of gallons dispensed, and identification number of the equipment or vehicle into which the fuel was dispensed; and
Equipment or vehicle identification number.

Power take-off units

If claiming a refund for a power take-off unit, a claimant must perform a “study” to determine how much fuel is consumed by the power take-off unit. The study must be approved by the Division prior to the first application for a refund. Contact the Division for more information.

Idling

Arizona will also issue a refund for fuel tax paid on fuel consumed while a vehicle is idling. Items that must be submitted to claim a refund must include:

Documentation that proves the total quantity of motor fuel purchased in Arizona during the refund period (invoices and fuel logs, or a summary of the fuel purchases);
Documentation that proves the vehicle was located in Arizona, off-highway, at the time it was in idle status and the length of time the vehicle was in idle status (using a non-scheduled route method, a scheduled route method, or a global positioning system report; contact the Division for more information on how to report vehicle location); and
Documentation that proves the quantity of fuel consumed by the vehicle while in idle status by engine manufacturer's specifications, a computerized system that calculates the fuel consumed per hour, or a study that determined fuel consumption by hour in idle status (if a study is used, it must have been approved by the Division; contact the Division for more information).

Several types of documentation must be submitted to the Division prior to applying for an idling refund. Contact the Division prior to application to ensure all requirements are met.

View agency contact information.

['Fleet Taxes']

['Highway use - Mileage tax']

...

Motor carrier fuel/Highway use/Mileage tax - Arizona