A. To comply with the intermodal surface transportation efficiency act of 1991, the director may enter into a cooperative agreement with other jurisdictions for the administration of motor fuel taxes imposed by article 1 of this chapter or section 28-8344. An agreement is not effective until signed by the director and filed with the department.

Terms Used In Arizona Laws 28-5703

  • 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
  • Director: means the director of the department of transportation. 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
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • 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
  • State: means a state of the United States and the District of Columbia. 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

B. The agreement shall include:

1. The base jurisdiction concept. This concept allows a licensee to report and pay motor fuel use taxes to a base jurisdiction for distribution to other member jurisdictions in which the licensee traveled and incurred motor fuel use tax liability.

2. Retention of each jurisdiction’s sovereign authority to determine tax rates and exemptions and exercise other substantive tax authority.

3. A uniform definition of the vehicles to which the agreement applies.

C. The agreement may provide for:

1. Determining the base jurisdiction for users.

2. Users records requirements.

3. Audit procedures.

4. Exchange of information.

5. Persons eligible for tax licensing.

6. Defining qualified motor vehicles.

7. Determining if bonding is required.

8. Specifying reporting requirements and periods, including defining uniform penalty and interest rates for late reporting.

9. Determining methods for collecting and forwarding motor fuel taxes and penalties to another jurisdiction.

10. Other provisions to facilitate the administration of the agreement.

11. Each jurisdiction to audit the records of persons based in the jurisdiction to determine if the motor fuel taxes due each jurisdiction are properly reported and paid.

D. Each jurisdiction shall forward the findings of the audits performed on persons based in the jurisdiction to each jurisdiction in which the person has taxable use of motor fuels. As required by the agreement, the director may forward to officers of another member jurisdiction any information in the director’s possession relative to the manufacture, receipt, sale, use, transportation or shipment of motor fuels by any person. The director may disclose to officers of another member jurisdiction the location of offices, motor vehicles and other real and personal property of users of motor fuels.

E. Member jurisdictions may enforce this chapter against persons who are not based in this state and who have taxable use of motor fuel in this state.

F. An agreement entered into under this section does not preclude the director or the director’s appointed representatives from auditing the records of a person covered by this article and article 1 of this chapter.

G. The legal remedies for a person served with an order or assessment under this section are as prescribed in article 5 of this chapter.

H. For the purposes of this section:

1. "Jurisdiction" means a state of the United States, the District of Columbia or a province or territory of the Dominion of Canada.

2. "Motor fuels" includes motor vehicle fuel, aviation fuel and use fuel.

3. "Qualified motor vehicle" means a use class motor vehicle.

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