Legislators’ latest idea for tax relief is a three-month gasoline tax rebate.

House Republicans proposed the rebate in a new bill packaged with 17 recycled budget bills previously vetoed by Gov. Janet Napolitano but reintroduced for reconsideration with changes.

The gasoline-tax bill (H2781) would let people claim a rebate of 10 cents a gallon — for a total rebate of up to $200 — for gasoline taxes paid between Memorial Day, May 30, and Labor Day, Sept. 5.

Only motorists who drive a lot would qualify for a $200 rebate. For a vehicle that gets 20 miles a gallon, a motorist would have to drive 40,000 miles to claim the maximum rebate.

Consumers would have to submit a rebate application with gasoline purchase receipts to the Arizona Department of Transportation. The money to pay the rebates would come from the state’s general fund, not the special fund that pays for highway projects.

Lawmaker Says Bill Intended To Spur Travel

Rep. Bill Konopnicki, R-5, who sponsored the bill with backing from House Speaker Jim Weiers, R-10, said it’s intended to both provide tax relief to Arizonans and spur summer vacation travel to rural Arizona.

Senate Majority Whip Jay Tibshraeny, R-21, said the introduction of the House bill was a surprise and that Senate leaders hadn’t agreed to make it part of the budget package.

Jodi Jerich, chief of staff for House Republicans, said the tax rebate was introduced as a separate bill so it could be floated for public discussion but later considered for inclusion in the budget package as an amendment.

Other tax proposals being considered for inclusion in the budget package include measures to reduce business property and income taxes.

ADOT lobbyist Kevin Biesty said the agency hadn’t taken a formal position on the bill but has concerns and questions on how it would be implemented.

“You have to have people to process these” rebate requests, Mr. Biesty said. “From an administrative standpoint, this could be a nightmare. There’s a hundred questions that we’re trying to answer on this bill.”

Mr. Konopnicki said the rebate would only apply to gasoline sales, not diesel. “We can’t do it for everybody,” he said.

Mr. Konopnicki said supporters are considering possible amendments to the bill, including a cap on total rebates to control the potential cost to the state.

“We don’t want to have another alt-fuels on our hands,” he said, referring to the state’s unexpectedly costly expansion of subsidies for alternative-fuel vehicles in 2000. —

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