Hobbs says she's open to suspending state gas tax, brushes off previous effort to increase it

Democratic Gov. Katie Hobbs said suspending the state’s fuel tax is a possibility as global gas prices continue to rise, but added that suspending the federal tax could be more helpful.

Arizona collects a tax of 18 cents per gallon of gas. The revenue pays for highway and road maintenance and construction.

With gas prices on the rise, Hobbs said temporarily pausing the state tax — which would require action by the state Legislature — could cut costs for Arizonans.

“I think we can't take anything off the table, but I do recognize that the gas tax is a very complicated issue and I think what might produce more relief, and I think our senators are looking at this, is some federal gas tax relief,” Hobbs said.

Hobbs’ spokesperson Christian Slater said the possibility of suspending the state fuel tax is a conversation for lawmakers to have with the governor during budget negotiations.

Democratic Arizona Sen. Mark Kelly is cosponsoring legislation to suspend the federal fuel tax, which is 18.4 cents per gallon.

Hobbs is facing criticism from GOP Congressman Andy Biggs, who is also running for governor, because she cosponsored legislation to double the state fuel tax in 2018.

Hobbs brushed off Biggs’ comments.

“The fact that I cosponsored a bill that never had a hearing and is not in existence today, is that a liability? No, I'm focused on what we have in front of us,” she said.

Arizona lawmakers last raised the fuel tax in 1990.

Hobbs did say the state should take a look at how road infrastructure is funded.

“If you ask anyone who drives our roads if they think our roads need more investment, I think that’s the answer to your question,” she said. “I will say this, we’re seeing less revenue into the HURF [Highway User Revenue Fund] fund from the gas tax because of the increase in electric vehicles which are not paying that, and I think we should look at a broader idea of how we actually fund our roads.”

Ultimately, gas prices are rising globally, not just in Arizona. Hobbs said apart from requesting waivers and potentially suspending taxes, the state is limited in what it can do.