Fuel Cost in Arizona?

[USA_Traveler]

I am not sure what this means, IS a person with a Class A Motorhome required to purchase Diesel at a special pump? We are planning on spending the winter in AZ and would like clarification prior to getting there. Thank you,

Diesel Fueling in Arizona
Messag e from Jim Koca, Advocacy Director


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 Administratio n 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.

Escapees feel that this information should be sent out to all of the members that travel through Arizona.

I would like to thank all of the members who have sent in this information to Headquarters so that we could investigate this issue.

[DSDP_Don]

Bob.....Thanks for the link to the memo. I printed it and will keep it in my motor home since I often buy diesel in Az.

[msmith1199]

Bob&AnnaMarie wrote:
It does look like this latter information is correct. Somehow things are confused on the Escapee site. Today, they have published a retraction of the article citing a Policy 13.2.3 that was supposedly issued October 10, 2014. But, an RV Arizona blogspot post says that policy document is a 2004 agency memo. Which leaves the question as to why the Escapee Rver was cited a few months ago.

This whole issue was created by Arizona officials citing an RVer for filling at the "wrong" pump. Obviously, the real concern here should be directed at that level.

Apparently the person who was cited was driving what is called a Toterhome. That is a regular full size semi-truck that has been converted to a motorhome. Although if it is a completely private motorhome used only for private purposes, I would argue it's just like any other big motorhome and should not have been cited. But there was talk he may have been hauling race cars with it which could enter you into a grey area as to whether it's private or commercial. Also, even if the person who wrote the citation was wrong, I can understand their confusion as a toterhome looks just like any other semi-truck on the road with the exception of the living quarters.

[Bob_AnnaMarie]

It does look like this latter information is correct. Somehow things are confused on the Escapee site. Today, they have published a retraction of the article citing a Policy 13.2.3 that was supposedly issued October 10, 2014. But, an RV Arizona blogspot post says that policy document is a 2004 agency memo. Which leaves the question as to why the Escapee Rver was cited a few months ago.

This whole issue was created by Arizona officials citing an RVer for filling at the "wrong" pump. Obviously, the real concern here should be directed at that level. And the Arizona representative who gave the wrong information to a valid question.

On edit: and now it looks like the "victim" really was a commercial enterprise involved in racing. Yep, they are not exempt. I do know that if you have any markings on your RV indicating commercial intent you are a commercial vehicle. This has been an interesting adventure.

[USA_Traveler]

Thank you so much for this answer. This makes sense and is completely understandable. I have been full timing since 2005, but always had a 5th wheel and just recently went to the motorhome, so this is all new to me. Again, thank you. Sara

[msmith1199]

My understanding of the guy who got this all started in the Toterhome, is that he may have been using to haul around race cars. If you're a pro-racer than I don't think you can claim a toterhome is not a commercial type vehicle. Also apparently in Arizona those toterhomes are required to be registered as "Trucks." That may also make the difference.

[BobGed]

msmith1199 wrote:
That settles it for me. But somebody needs to tell Zimmerman that an email or a memo needs to go out to everybody at DOT and maybe even in a press release clarifying this, as other government officials in AZ appear to be telling people different things.

I was only concentrating on the motor home issue, however I think the part that is still somewhat in the air is whether this exemption applies to MDT/HDT units. As I recall from the Escapee's article it was an operator of a HDT unit towing a fiver that was cited and find $1,000.

I have seen them on the road and in RV parks. Some are clearly signed with something like "Not For Hire" or "For Recreational Use Only", but not all of them. I could see the potential for some one to use a HDT for commercial purposes say during the week, and then tow his fiver on the weekends or holidays. I'm sure AZ can easily tell if a MDT/HDT is commercially licensed in their state and make an easy decision, but what about out of state licensed units?

I would suspect with the proper documentation and signage they are also exempt, but that is for some one else to take up with Mark. His email address is MZimmerman@azdot.gov

On edit: I had another email exchange with Mark regarding the incorrect info that the Fuel Tax Manager had disseminated. He is going to speak with him to make sure he is providing the correct information going forward.

[msmith1199]

BobGed wrote:
I just had an email exchange with Mark Zimmerman, Senior Division Administrator, Revenue and Fuel Tax Administration for ADOT. I am posting a pertinent portion of that email below, but I have uploaded the entire email in PDF format to my Dropbox AZ Motor Home Diesel Fuel Tax Document for those that would like to see the entire exchange, and to possibly carry it in their coach or store it in their Cloud location.

A portion of the email follows:

I believe the wording that is causing all the confusion has to do with what is considered a “passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 pounds or having more than two axles”.

I have three questions that if you would be so kind to answer I will pass on your replies.

Question: Is the definition of a “passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 pounds or having more than two axles” meant to apply a passenger carrying vehicle for hire (for example a Greyhound bus)?
Answer: Yes, you are correct.

Question: Is any non-commercially operated motor home, regardless of the weight or number of axles, ever subject to the higher .26¢ tax rate?
Answer: No, you are correct, motor homes used for non-commercial purposes pay the $.18 tax rate. Should such purchaser ever pay the $.26 tax rate, they are eligible to go into the retail station and ask the cashier for an $.08 refund. The cashier will have a log for the purchaser to complete.

Question: Is the .08¢ differential between the .18¢ rate and the .26¢ rate meant to apply to commercial vehicles only?
Answer: The $.26 tax rate is meant for “use class vehicles” as defined in ARS 28-5601.37 – “means a motor vehicle that uses use fuel on a highway in this state and that is a tractor, truck tractor, truck or passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 lbs or having more than two axles.” Use class vehicles that are exempt from the weight fee in ARS 28-5432 and 5433, pay the $.18 tax rate (See ARS 28-5606.B.2). Non-commercial motor homes fall under this provision.

That settles it for me. But somebody needs to tell Zimmerman that an email or a memo needs to go out to everybody at DOT and maybe even in a press release clarifying this, as other government officials in AZ appear to be telling people different things.

[vegasfoodguy]

MrWizard wrote:
Do you have a tag axle
If You do , just don't take a chance, just pay the extra tax

Is 8 cents a gallon going to break you

Eight cents one hundred gallons $8 more per fill up

Go down the street spend twice that for lattes and sandwich

If your passing thru, don't stop
If your snow birding, your already saving plenty by being in Az

I think people have made too big a fuss over this

Think about it! Fuel in Phoenix $3.25, Fuel in Riverside Ca. $3.69,
What is the best deal?

[BobGed]

I just had an email exchange with Mark Zimmerman, Senior Division Administrator, Revenue and Fuel Tax Administration for ADOT. I am posting a pertinent portion of that email below, but I have uploaded the entire email in PDF format to my Dropbox AZ Motor Home Diesel Fuel Tax Document for those that would like to see the entire exchange, and to possibly carry it in their coach or store it in their Cloud location.

A portion of the email follows:

I believe the wording that is causing all the confusion has to do with what is considered a “passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 pounds or having more than two axles”.

I have three questions that if you would be so kind to answer I will pass on your replies.

Question: Is the definition of a “passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 pounds or having more than two axles” meant to apply a passenger carrying vehicle for hire (for example a Greyhound bus)?
Answer: Yes, you are correct.

Question: Is any non-commercially operated motor home, regardless of the weight or number of axles, ever subject to the higher .26¢ tax rate?
Answer: No, you are correct, motor homes used for non-commercial purposes pay the $.18 tax rate. Should such purchaser ever pay the $.26 tax rate, they are eligible to go into the retail station and ask the cashier for an $.08 refund. The cashier will have a log for the purchaser to complete.

Question: Is the .08¢ differential between the .18¢ rate and the .26¢ rate meant to apply to commercial vehicles only?
Answer: The $.26 tax rate is meant for “use class vehicles” as defined in ARS 28-5601.37 – “means a motor vehicle that uses use fuel on a highway in this state and that is a tractor, truck tractor, truck or passenger carrying vehicle having a declared gross vehicle weight of more than 26,000 lbs or having more than two axles.” Use class vehicles that are exempt from the weight fee in ARS 28-5432 and 5433, pay the $.18 tax rate (See ARS 28-5606.B.2). Non-commercial motor homes fall under this provision.

[kjburns]

The bill stated:

2. If the use fuel is used in the propulsion of a light class motor vehicle (such as a pickup truck), or an exempt vehicle (certain school buses, government and non-profit vehicles on a highway in this state, the tax rate is $.18 per gallon).

The $0.26 rate is for commercial (for profit) vehicles.

[msmith1199]

Well one of the members here called the "Fuel Tax Manager" and was told it did not apply to privately owned RV's not used for commercial purposes. By the way I don't see anybody with the title "Fuel Tax Manager" in AZ. The guy spoken to by the member here was Mark Zimmerman whose title is Senior Division Administrator of the Revenue and Fuel Tax Administration, which is a unit under the Arizona Department of Transportation.

[Dutch_12078]

moisheh wrote:
Wow: Cannot believe the Reponses. The head of the gas tax enforcement has posted that this tax does not apply to MH's. But still the experts know better. I fueled in AZ last week at the RV pumps!

Moisheh

And the AZ fuel tax manager told the Escapees that it DOES apply to MH's. Who should we believe?

[moisheh]

Wow: Cannot believe the Reponses. The head of the gas tax enforcement has posted that this tax does not apply to MH's. But still the experts know better. I fueled in AZ last week at the RV pumps!

Moisheh

[Bob_AnnaMarie]

USA Traveler wrote:
I apologize to all for starting this post, I was just curious since the message came from Escapees and they normally are on top of things. I am fine with it either way and am going to AZ tax or no tax! It will not make a big difference in my budget. Otherwise, I would not be traveling. Hope everyone has a good evening! Sara

Sara,
I just got the Escapee letter today too. I was considering posting it here since this topic was discussed extensively previously. I know you meant well by passing the information along. Jim Koca (Escapee Advocacy Director) did make the call to the Revenue & Fuel Tax Administration Fuel Tax Manager in Phoenix to clarify this issue and was told that RVs are included. That is good enough for me.

And for those of us with qualifying RVs, this is no trivial matter. The penalties are severe for a violation.

This has become a flammable topic and I seriously think people would be well advised to also do serious research before opining further. The penalties are just too severe for non-compliance and the little sticker on the pump (that I only saw in the document on this topic) is far too small to alert RV owners of their possible violation.

Thank you for trying to pass along a serious warning on a serious topic.
Bob