britcon Report post Posted October 16, 2014 Last year, we were fueling at a Loves just south of Phoenix. We always use the truck lanes as we are 58' with toad. We actually had a Loves fuel truck driver approach us and recommend we move to the front " RV " pumps to save the tax. As I was already fueling I declined, to which he commented " wish I had your money " *g* I wasn't aware of the tax issues until reading this thread. Share this post Link to post Share on other sites
BillAdams Report post Posted October 16, 2014 This was just posted on the Escapees website At this point, the best advice we can offer is a quote from Ryan Harding with the Arizona Department of Transportation: Arizona does have a dual-tiered diesel tax system. The issue of which tax tier one fits into comes down to whether you are using your vehicle for commercial purposes or personal leisure. RV owners who are using their RVs for personal pleasure can fill up with diesel fuel that is taxed at $0.18 per gallon. As long as it’s being used for personal use, weight limits do not apply. If the RV is being used for commercial use or the furthering of a business and weighs more than 26,000 pounds, then the driver must fill up with diesel fuel taxed at $0.26 per gallon. Any situation where the RV is being used to help an individual or a business make money can be defined as commercial use. Examples of this include, but are not limited to, an RV that is registered to a business, such as an LLC, or a musical group using an RV to travel to venues to play for money. So, to reiterate, the 26,000 pound weight limit only applies if the RV is being used to help further a business or commercial enterprise. All diesel pumps in Arizona have ADOT warning labels which direct the consumer on the specific tax rate at that pump and legal requirements for using the lower taxed fuel. If the RV owner fills up at diesel pumps taxed at the higher rate, but they qualify for the lower tax rate, they can contact the gas retailer and request an $0.08 per gallon refund. The fine for fuel tax evasion in Arizona is $1,000 or $10 per gallon pumped, whichever is greater. Thanks, Ryan Harding Arizona Department of Transportation Office of Public Information 602.712.8111 (office)news@azdot.gov (media)azdot.gov I would like to thank Greg Gerber with RV Daily Report for furnishing the above information. In summary, the information that I received in September from the Arizona Revenue and Fuel Tax Administration office was not entirely correct. Non-commercial motor homes and 5th wheels used for personal leisure are exempt from the higher fuel tax. In the meantime, we will continue to push for cleaner and clearer policies so that the general RVing public understands what they should be doing to meet the laws of Arizona. I hope this has clarified any problems with the Arizona fuel tax laws. If for some reason you fill up at the $.26 fuel tax pumps, be sure to go back inside and request your refund of the $.08 per gallon. Jim Koca Escapees Advocacy Director Share this post Link to post Share on other sites
hermanmullins Report post Posted October 17, 2014 Bill, Ryan and Jim, Thank you for clearing up this matter. This goes to show, when in doubt go to the main source for answers. Now I have to advise several folks I know to take their magnetic signs off their tow vehicles when fueling up in AZ. Herman Share this post Link to post Share on other sites
bursbus Report post Posted October 18, 2014 There is an article in the RVtravel.com news letter this week that also clarifies the AZDOT regulation. Basically if it is a RV used for RV purposes it is exempt. The article spells it out very clearly. We don't have to look over our shoulders any more.lol BUR Share this post Link to post Share on other sites
skiprd Report post Posted October 22, 2014 The RVTravel newsletter mentioned above referenced an RV-Arizona newsletter article "Arizona Fuel Tax Rumor Goes Viral," which can be found here: http://rvarizona.blogspot.com/2014/10/arizona-fuel-tax-rumor-goes-viral-heres.html The operative text reads as follows: For motorhomes, Arizona DOT's Kent pointed us to a 2004 agency policy memo, number 13.2.3. Boiled down, the policy says as long as a motorhome has at least four of the following items, it is exempt from "use class" (and higher fuel taxes). Those items include:"A cooking facility with an on-board fuel source,"A gas or electric refrigerator"A toilet with exterior evacuation"A heating or air-conditioning system with an on-board power or fuel source separate from the vehicle engine"A portable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection"A 110-125 volt electric power supply"If you've got at least four of those things, even if your motorhome has a weight rating of more than 26,000 pounds and/or more than three axles, your rig is NOT a "use class" motor vehicle, and thus does NOT have to pay the higher fuel tax rate. One last detail: For your motorhome to meet the 'lower fuel tax use OK' test, it must be used for recreational purposes. If used for commercial purposes, once you hit over 26,000 pounds and/or more than two axles, you are stuck paying the higher tax rate. Sounds definitive to me. Skip Share this post Link to post Share on other sites
britcon Report post Posted October 23, 2014 Devils Advocate: What about Motorhomes owned by a LLC ( Montana or ? ). Share this post Link to post Share on other sites
billbaldwin Report post Posted October 23, 2014 Reading through the information it looks like LLC's are taxed at the higher rate LLC's by definition are to limit personal liability for the owners of a for profit business Share this post Link to post Share on other sites
BillAdams Report post Posted October 23, 2014 An RV with an LLC license is owned by a business and I don't think you can get around that point. You would need to pay the higher price. Share this post Link to post Share on other sites
