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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
vehicle sale price; VLT
Purpose
Determines the vehicle license tax (VLT) for outlined motor vehicles based on the actual sale price, rather than the manufacturer's base retail price.
Background
A VLT is
constitutionally required for each year of a vehicle's registration (Ariz.
Const. art. 9, § 11). At the time of application for, and before
registration each year of, a motor vehicle, the registering officer must
collect the VLT. During the first 12 months of the life of the vehicle as
determined by its initial registration, the VLT is based on each $100 in value
which is 60 percent of the manufacturer's base retail price and decreased by
16.25 percent each year (A.R.S.
§ 28-5801).
For motor
vehicles that are privately owned and exclusively operated as school buses or
for ambulance and firefighting services, the registering officer must collect
an annual VLT of $4 for each $100 in value. During the first 12 months of the
motor vehicle, the value is 1 percent of the manufacturer's base retail price,
decreased by 15 percent each year (A.R.S. §§ 28-5804
and
28-5806).
For alternative fuel motor vehicles, the value of the motor vehicle is: 1) if registered before January 1, 2022, 1 percent of the manufacturer's base retail price; and 2) if initially registered between January 1, 2022, and December 31, 2022, 20 percent of the manufacturer's base retail price. The value is decreased by 15 percent each year. If purchased beginning January 1, 2023, the VLT of an alternative fuel motor vehicle is calculated in the same manner as for a motor vehicle that is not an alternative fuel motor vehicle (A.R.S. § 28-5805).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Determines the VLT based on the actual sale price, rather than the manufacturer's base retail price, for:
a) motor vehicles;
b) privately owned motor vehicles that operate exclusively as school buses;
c) alternative fuel motor vehicles; and
d) privately owned motor vehicles used solely for providing ambulance or firefighting services.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2022
LMM/sr