Arizona Laws 28-5610. Exemptions
A. The following are exempt from motor vehicle fuel and use fuel taxes imposed by section 28-5606 and aviation fuel taxes imposed by section 28-8344:
Terms Used In Arizona Laws 28-5610
- Aviation fuel: means all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating an internal combustion engine for use in an aircraft but does not include fuel for jet or turbine powered aircraft. See Arizona Laws 28-101
- Department: means the department of transportation acting directly or through its duly authorized officers and agents. See Arizona Laws 28-101
- Destination state: means the state, territory or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container or a type of transportation equipment for the purpose of resale or use. See Arizona Laws 28-5601
- Distributor: means a person who acquires motor fuel from a supplier or another distributor for subsequent sale or use and who may blend or import into or export from this state motor fuel in the original package or container or otherwise but excluding a person who imports motor fuel in the fuel tank of a motor vehicle or aircraft. See Arizona Laws 28-5601
- Dyed diesel fuel: means diesel fuel that is dyed pursuant to United States internal revenue service regulations or requirements, including any invisible marker requirements. See Arizona Laws 28-5601
- Farm: means any lands primarily used for agriculture production. See Arizona Laws 28-101
- Highway: means any way or place in this state of whatever nature that is maintained by public monies and that is open to the use of the public for purposes of vehicular travel, including a highway under construction. See Arizona Laws 28-5601
- Implement of husbandry: means a vehicle that is designed primarily for agricultural purposes and that is used exclusively in the conduct of agricultural operations, including an implement or vehicle whether self-propelled or otherwise that meets both of the following conditions:
(a) Is used solely for agricultural purposes including the preparation or harvesting of cotton, alfalfa, grains and other farm crops. See Arizona Laws 28-101
- In this state: means any way or place within the exterior limits of the state of Arizona that is maintained by public monies, including any such way or place that is owned by or ceded to the United States of America. See Arizona Laws 28-5601
- incidentally operated or moved on a highway: means travel between a farm and another part of the same farm, from one farm to another farm or between a farm and a place of repair, supply or storage. See Arizona Laws 28-101
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Indian reservation: means all lands that are within the limits of areas set aside by the United States for the exclusive use and occupancy of Indian tribes by treaty, law or executive order and that are currently recognized as Indian reservations by the United States department of the interior. See Arizona Laws 28-5601
- Indian tribe: means any organized nation, tribe, band or community recognized as an Indian tribe by the United States department of the interior. See Arizona Laws 28-5601
- Motor fuel: means motor vehicle fuel, use fuel and aviation fuel. See Arizona Laws 28-5601
- Motor vehicle: means a self-propelled vehicle required to be licensed or subject to licensing for operation on a highway. See Arizona Laws 28-5601
- Motor vehicle fuel: includes all products that are commonly or commercially known or sold as gasoline, including casinghead gasoline, natural gasoline and all flammable liquids, and that are composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating internal combustion engines. See Arizona Laws 28-101
- Person: means an individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver or syndicate, this state, any county, city, town, district or other subdivision of this state, an Indian tribe, or any other group or combination acting as a unit. See Arizona Laws 28-5601
- Property: includes both real and personal property. See Arizona Laws 1-215
- State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
- Trailer: means a vehicle that is with or without motive power, other than a pole trailer or single-axle tow dolly, that is designed for carrying persons or property and for being drawn by a motor vehicle and that is constructed so that no part of its weight rests on the towing vehicle. See Arizona Laws 28-101
- Truck: means a motor vehicle designed or used primarily for the carrying of property other than the effects of the driver or passengers and includes a motor vehicle to which has been added a box, a platform or other equipment for such carrying. See Arizona Laws 28-101
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
- Use: includes the placing of fuel into any receptacle on a motor vehicle from which fuel is supplied for the propulsion of the vehicle unless the operator of the vehicle establishes to the satisfaction of the director that the fuel was consumed for a purpose other than to propel a motor vehicle on a highway in this state and, with respect to fuel brought into this state in any such receptacle on a use class motor vehicle, the consumption of the fuel in this state. See Arizona Laws 28-5601
- Use fuel: includes all gases and liquids used or suitable for use to propel motor vehicles, except fuels that are subject to the motor vehicle fuel tax imposed by this article. See Arizona Laws 28-5601
1. Motor fuel for which proof of export is available in the form of a terminal-issued destination state shipping paper or bill of lading and that is either:
(a) Exported by a supplier who is licensed in the destination state.
(b) Sold by a supplier to a distributor for immediate export.
2. Motor fuel that was acquired by a distributor, as to which the tax imposed by this article or section 28-8344 has previously been paid or accrued and that was subsequently exported by transport truck by or on behalf of the distributor in a diversion across state boundaries properly reported to the department. If diverted by a distributor, the distributor shall perfect the exemption by filing a refund application with the department within six months after the diversion.
3. Motor vehicle fuel or use fuel that is sold within an Indian reservation to an enrolled member of the Indian tribe who is living on the Indian reservation established for the benefit of that Indian tribe and that is used by the enrolled member for the enrolled member’s own benefit. This exemption does not apply to sales within an Indian reservation by an Indian or Indian tribe to non-Indian consumers or to Indian consumers who are not members of the Indian tribe for which the Indian reservation was established or to use fuel used to operate motor vehicles for a commercial purpose outside of the reservation on highways in this state. For the purposes of this paragraph, "Indian" means an individual who is registered on the tribal rolls of the Indian tribe for whose benefit the Indian reservation was created.
4. Motor vehicle fuel or use fuel used solely and exclusively as fuel to operate a motor vehicle on highways in this state if the motor vehicle is leased to or owned by and is being operated for the sole benefit of an Indian tribe for governmental purposes only.
5. Motor fuel that is moving in interstate or foreign commerce and that is not destined or diverted to a point in this state.
6. Motor vehicle or aviation fuel that is sold to the United States or an instrumentality or agency of the United States.
7. Taxable use fuel that has been accidentally contaminated so as to be unsalable as highway fuel as proved by proper documentation.
8. Dyed diesel fuel, including fuel used by either of the following:
(a) A farm tractor or implement of husbandry designed primarily for or used in agricultural operations and only incidentally operated or moved on a highway.
(b) A road roller or vehicle that is all of the following:
(i) Designed and used primarily for grading, paving, earthmoving or other construction work on a highway.
(ii) Not designed or used primarily for transportation of persons or property.
(iii) Incidentally operated or moved over the highway.
B. A use class vehicle shall pay the use fuel tax for light class motor vehicles prescribed by section 28-5606, subsection B, paragraph 1 if the vehicle is a truck and satisfies all of the following:
1. Is at least twenty-five years old.
2. Has been issued a historic vehicle license plate pursuant to section 28-2484.
3. Is not used as a commercial vehicle.
C. Notwithstanding subsection A, paragraph 8 of this section, the following are not exempt from use fuel taxes imposed by section 28-5606:
1. A vehicle that was originally designed for the transportation of persons or property and to which machinery is attached or on which machinery or other property may be transported.
2. A dump truck.
3. A truck mounted transit mixer.
4. A truck or trailer mounted crane.
5. A truck or trailer mounted shovel.
D. Except as provided in subsections E and F of this section, a person who claims an exemption pursuant to this section shall perfect the exemption by claiming a refund pursuant to section 28-5612.
E. Subject to sections 28-5645, 28-5646, 28-5647, 28-5648, and 28-5649, dyed diesel fuel is exempt from use fuel taxes at the time of sale.
F. Motor fuel that originates outside this state, is moving in interstate or foreign commerce and is not destined or diverted to a point in this state is exempt from motor fuel taxes as the motor fuel travels across this state.