No Tax Relief in Arizona

Proposed gas rebate stalls in House committee

Published in CSP Daily News

PHOENIX -- A rumored gasoline tax rebate in Arizona making its way into consumers' e-mail inboxes this spring is exaggerated, although not completely based on fantasy. In an effort to both provide tax relief to residents and spur summer vacation travel to rural Arizona, state House Republicans did propose a three-month gasoline tax rebate; however, the bill stalled in committee.

Under House Bill 2781, consumers could have claimed a rebate of 10 cents per gallon of gasoline purchased between Memorial Day, May 30, and Labor Day, September 5. The rebate [image-nocss] was capped at $200or 2,000 gallonsand applied only to gasoline, not diesel.

According to a spokesperson for State Representative Bill Konopnicki (R), the lead sponsor of the bill, the proposal received readings in the state's Appropriations & Rules committees and then died for lack of interest. Attempts to reach Konopnicki for comment were unsuccessful.

The e-mail circulating to Arizona residents encourages motorists to save their gasoline-purchase receipts this summer, noting, The legislature has just passed a bill to rebate us (in Arizona) for some of the tax we pay at the pump. It then directs interested readers to a website posting of the bill.

Konopnicki's spokesperson said she has received only a few calls concerning the rebate.

The Arizona Department of Transportation estimates each 1 cent of the motor vehicle fuel tax generates about $27.5 million of revenue for the state's Highway User Revenue Fund, which is used for highway construction and improvements and other related expenses.