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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
vehicle registration fees, proration
Purpose
Retroactive to September 1, 2019, allows the Director of the Arizona Department of Transportation (ADOT) to prorate the registration fee for a vehicle.
Background
A
vehicle license tax (VLT) is constitutionally required for each year of a
vehicle's registration (Ariz.
Const. art. 9 § 11). The VLT decreases with the age of the vehicle and the
minimum VLT for a gasoline-powered vehicle is $10 per year (A.R.S. Title 28, Chapter 16,
Article 3).
The Director of ADOT (Director) is allowed to register or reregister a vehicle for less than 12 months and subsequently prorate the annual VLT for the vehicle if the Director determines that proration tends to fulfill the purpose of the monthly registration system. The Director is prohibited from retroactively collecting a VLT for any period that the vehicle was not registered if the current owner of the vehicle was not the owner during any part of the period during which the vehicle was not registered (A.R.S. § 28-5807).
This legislation may have a fiscal impact to the state General Fund if the proration of vehicle registration fees results in less revenue collected from such fees.
Provisions
1. Allows the Director, when registering or reregistering a vehicle for less than 12 months, to prorate the vehicle registration fee if the Director determines the proration fulfills the purpose of the monthly registration system.
2. Prohibits the Director from retroactively collecting a registration fee for any period the vehicle was not registered if the current owner did not own the vehicle during any part of the time the vehicle was not registered.
3. Becomes effective on the general effective date, retroactive to September 1, 2019.
Prepared by Senate Research
February 17, 2020
ZD/kja