HB2549 - 541R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-5801, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5801. Vehicle license tax rate

A. At the time of application for and before registration each year of a vehicle, the registering officer shall collect the vehicle license tax imposed by article IX, section 11, Constitution of Arizona. On the taxpayer's vehicle license tax bill, the registering officer shall provide the taxpayer with the following:

1. information showing the amount of the vehicle license tax that each category of recipient will receive and the amount that is owed by the taxpayer.

2. The amount of vehicle license tax the taxpayer would pay pursuant to section 28‑5805 if the taxpayer's motor vehicle was powered by alternative fuel.

B. Except as provided in subsections C, D and E of this section:

1. During the first twelve months of the life of a vehicle as determined by its initial registration, the vehicle license tax is based on each one hundred dollars $100 in value, the value of the vehicle is sixty per cent percent of the manufacturer's base retail price of the vehicle and the vehicle license tax rate for each of the recipients is as follows:

(a) The rate for the Arizona highway user revenue fund is one dollar twenty‑six cents $1.26.

(b) The rate for the county general fund is sixty‑nine cents $.69.

(c) The rate for counties for any purposes related to transportation, as determined by the board of supervisors, is sixteen cents $.16.

(d) The rate for incorporated cities and towns is sixty‑nine cents $.69.

2. During each succeeding twelve month twelve-month period, the vehicle license tax is based on each one hundred dollars $100 in value, the value of the vehicle is 16.25 per cent percent less than the value for the preceding twelve month twelve-month period and the vehicle license tax rate for each of the recipients is as follows:

(a) The rate for the Arizona highway user revenue fund is one dollar thirty cents $1.30.

(b) The rate for the county general fund is seventy‑one cents $.71.

(d) The rate for incorporated cities and towns is seventy‑one cents $.71.

3. The minimum amount of the vehicle license tax computed under this section is ten dollars $10 per year for each vehicle that is subject to the tax. If the product of all of the rates prescribed in paragraph 1 or 2 of this subsection is less than ten dollars $10, the vehicle license tax is ten dollars $10. The vehicle license tax collected pursuant to this paragraph shall be distributed to the recipients prescribed in this subsection based on the percentage of each recipient's rate to the sum of all of the rates.

C. The vehicle license tax is as follows for noncommercial trailers that are not travel trailers and that are ten thousand pounds or less gross vehicle weight:

1. On initial registration, a one‑time onetime vehicle license tax of one hundred five dollars $105.

2. On renewal of registration, a one‑time onetime vehicle license tax of seventy dollars $70.

D. The vehicle license tax is as follows for a trailer or semitrailer that is not a travel trailer and that exceeds ten thousand pounds gross vehicle weight:

1. On initial registration, a one‑time onetime vehicle license tax of five hundred fifty‑five dollars $555.

2. On renewal of registration or if previously registered in another state, a one‑time onetime vehicle license tax of:

(a) If the trailer's or semitrailer's model year is less than six years old, three hundred fifty‑five dollars $355.

(b) If the trailer's or semitrailer's model year is at least six years old, one hundred dollars $100.

E. The vehicle license tax for an all‑terrain vehicle or off‑highway vehicle as defined in section 28‑1171 is three dollars $3 if the all‑terrain vehicle or off-highway vehicle meets both of the following criteria:

1. Is designed by the manufacturer primarily for travel over unimproved terrain.

2. Has an unladen weight of eighteen hundred pounds or less.

F. The vehicle license tax collected pursuant to subsection C, D or E of this section shall be distributed to the recipients prescribed in subsection B of this section based on the percentage of each recipient's rate to the sum of all of the rates.

G. For the purposes of subsection subsections C and D of this section, "travel trailer" has the same meaning prescribed in section 28‑2003. END_STATUTE

Sec. 2. Repeal

A. Section 28-5805, Arizona Revised Statutes, as amended by Laws 2000, Seventh Special Session, chapter 1, section 5, is repealed.

B. Section 28‑5805, Arizona Revised Statutes, as amended by Laws 2018, chapter 265, section 2, is repealed.

Sec. 3. Section 28-5808, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5808. Vehicle license tax distribution

A. Except as provided in subsection D of this section, the director shall distribute monies collected by the director pursuant to section 28‑5801, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, all of the Arizona highway user revenue fund monies received from the first through the fifteenth calendar day of the preceding month in the Arizona highway user revenue fund, except that on the first calendar day the director shall deposit, pursuant to sections 35‑146 and 35‑147, in the parity compensation fund established by section 41‑1720, 1.51 per cent percent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the first through the fifteenth calendar day of the preceding month.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, all of the Arizona highway user revenue fund monies received from the sixteenth through the last day of the preceding month in the Arizona highway user revenue fund, except that on the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, in the parity compensation fund established by section 41‑1720, 1.51 per cent percent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the sixteenth through the last day of the preceding month. On the fifteenth calendar day, the director shall distribute or deposit all other monies received during the entire preceding month as follows:

(a) The county general fund monies to the county general fund.

(b) The county transportation monies to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state.

(c) The incorporated cities and towns monies to the incorporated cities and towns of the county in proportion to the population of each.

3. The deposit of the monies in the parity compensation fund pursuant to paragraphs 1 and 2 of this subsection shall not impact the distribution of vehicle license tax revenues to the state general fund and to cities, towns and counties pursuant to this section.

B. The director shall distribute monies collected by the director pursuant to sections 28‑5804, 28‑5805, 28‑5806 and 28‑5810, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:

1. On the first calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, 37.61 per cent percent of all monies received from the first through the fifteenth calendar day of the preceding month in the highway user revenue fund.

2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, 37.61 per cent percent of all monies received from the sixteenth through the last day of the preceding month in the highway user revenue fund and distribute or deposit the following amounts as a percentage of all monies received pursuant to sections 28‑5804, 28‑5805, 28‑5806 and 28‑5810 during the entire preceding month as follows:

(a) 20.45 per cent percent to the county general fund.

(b) 4.91 per cent percent to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state.

(d) 1.64 per cent percent, pursuant to sections 35‑146 and 35‑147, in the state highway fund established by section 28‑6991.

(e) 4.09 per cent percent in the state highway fund established by section 28‑6991.

(f) 10.85 per cent percent, pursuant to sections 35‑146 and 35‑147, in the state general fund to aid school financial assistance.

C. For purposes of this section the population of a county, city or town shall be determined as provided by section 28‑6532 or 42‑5033.01. If an incorporated city or town has had no federal enumeration of population, the supervisors shall both:

1. Appoint a qualified person to take an accurate census of the incorporated city or town.

2. Certify the results to the county treasurer, and the incorporated city or town shall share in the distribution as provided by this section.

D. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28‑6538, subsection A, paragraph 1 the following amounts:

1. An amount equal to ninety per cent percent of the fees collected pursuant to section 28‑4802, subsection A in the preceding month.

2. An amount equal to sixty per cent percent of the fees collected pursuant to section 28‑4802, subsection B in the preceding month.

E. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28‑6538, subsection A, paragraph 1 the difference between the actual amount of the vehicle license tax revenue collected as a result of registration of vehicles pursuant to section 28‑2159 in the preceding month for a five‑year registration period and the amount that would have been collected if those same vehicles had been registered for a two‑year vehicle registration period. END_STATUTE

Sec. 4. Repeal

Laws 2018, chapter 265, sections 4 and 5 are repealed.