Arizona Senate passes SB1108 by a vote of 17-13. The bill would levy the highest annual tax in the nation on electric vehicle owners.

PHOENIX, March 3, 2021 — Today, national business group Advanced Energy Economy reacted to Arizona Senate passage of SB 1108* today, an omnibus tax bill that levies an annual tax of $110 on electric vehicle owners. The bill presents an overall net decrease in taxes, allowing it to avoid requirements for a two-thirds supermajority passage. The final Senate vote was 17-13.

If passed by the Legislature and signed into law by Governor Doug Ducey, this tax on EVs will be among the highest in the nation and will curtail growth of the state’s EV market, an industry that has a vital supply chain and manufacturing pipeline in the state.

“This punitive bill sends the wrong signal to EV manufacturers in the state and hurts business growth and opportunity at a time when the focus should be on economic recovery. AEE is ready to have a real conversation around how to fill the state’s transportation funding gap. Creating an unfair tax on EV users is not the answer,” said Shelby Stults, Principal and Arizona state lead at Advanced Energy Economy.

“An average new 2021 passenger vehicle owner would only pay about $77 in annual gas tax in Arizona.” said Stults. “This bill would have EVs pay 60% more than a conventional light-duty passenger vehicle, in addition to sales tax in most cases.”

*Note: AEE offers free, complimentary access to its PowerSuite online platform tracking all federal and state energy legislation and regulatory filings, plus RTO/ISO policy action, to credentialed media. Sign up for a free trial and contact Monique Hanis (mhanis@aee.net) for permanent media access.