AZ gas tax facts

Arizona ranks on the low end in terms of taxation of motor fuels versus other states. According to the Tax Foundation, Arizona ranks 41st.

State-to-state comparisons are enve more complex: some states levy sales taxes and others -- including Arizona -- do not. So any ranking is only valid at some particular price per gallon. And in a high gasoline price environment, it will tend to push Arizona even further down in the rankings.

In any event, motor fuel taxation in Arizona is pretty straightforward: Gasoline is 18 cents per gallon, plus 1 cpg for UST (Underground Storage Tank cleanup fees). Federal is 18.4 cpg making the total 37.4 cpg for gasoline sold in Arizona.


The Arizona tax rate of 18 cpg was last changed in 1991 -- going on two decades ago. In the meantime to simply keep up with inflation, the tax would need to be over 28 cpg. But what has our leadership done? Nothing.

Compare this to the general state sales tax (and keep in mind, there is no sales tax on fuel), which is cleverly figured as a percentage. This means that whenever inflation raises the price of goods, the state gets more revenue. So for example the tax on a dollar cup of coffee in 1991 brought in 5 cents revenue to the state, and now it magically brings in 8 cents. All without lifting a legislative finger, and no kooky ballot initiatives.


(Diesel is xx + 1 cpg UST? + federal = ?? cpg)




http://www.arizonagasprices.com/tax_info.aspx