ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2549: VLT; alternative fuel classification; repeal |
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PRIME SPONSOR: Representative Biasiucci, LD 5 BILL STATUS: Caucus & COW
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Summary of the Strike-Everything Amendment to HB2549
Overview
Modifies the separate classification of
vehicle license tax (VLT) for alternative fuel vehicles that become effective
January 1, 2020.
History
A vehicle license tax (VLT) is imposed on vehicles registered for operation upon the highways in Arizona, charged in lieu of a property tax (Arizona Constitution, Article IX, § 11). At the time of registration each year of a vehicle, the registering officer is required to collect the imposed VLT. On the VLT bill, the registering officer is required to provide the taxpayer with information showing the amount of the VLT that each category of recipient will receive and the amount that is owed by the taxpayer. During the first-year registration of the vehicle, the VLT is $2.80 for each $100 of the assessed value of the vehicle, which is 60% of the manufacturer's base retail price. For each succeeding year, the VLT is $2.89 for each $100 in assessed value of the vehicle, which is 16.25% less than the value of the preceding year. The minimum VLT is $10 (A.R.S. § 28-5801).
A separate classification of VLT is established for alternative fuel vehicles. At the time of registration of alternative fuel vehicles, the VLT is $4 for each $100 dollar of the assessed value of the vehicle. The assessed value of the vehicle for the first year is 1% of the manufacturer's base retail price of the vehicle. For each succeeding year, the assessed value of the vehicle is 15% less than the value of the preceding year. The minimum VLT for alternative fuel vehicles is $5 (A.R.S. § 28-5805).
Laws 2018, Chapter 265 § 2 established changes to the classification of VLT for alternative fuel vehicles effective on January 1, 2020. Under this act, the VLT for alternative fuel vehicles purchased before January 1, 2020 is required to be set by the Director of ADOT as a percentage of the value of the manufacturer's base retail price of the vehicle. For each succeeding year, the value is 15% less the value in the preceding year. The initial VLT for alternative fuel vehicles with a gross weight under 10,000 pounds that are purchased on or after January 1, 2020 is 30% of the manufacturer's base retail price of the vehicle. For each succeeding year, the value of the vehicle is 15% less the value in the preceding year. For alternative fuel vehicles with a gross weight of over 10,000 pounds for vehicles purchased on or after January 1, 2020, the VLT is the same as non-alternative fuel vehicles.
Provisions
1. Requires the VLT for alternative fuel vehicles registered in Arizona before January 1, 2022 to be:
a. 1% of the manufacturer's base retail price of the vehicle; and
b. 15% less the value in each preceding year. (Sec. 1)
2. Requires the VLT for alternative fuel vehicles initially registered in Arizona between January 1, 2022 and December 31, 2022 to be:
a. 20% of the manufacturer's base retail price of the vehicle; and
b. 15% less the value in each preceding year. (Sec. 1)
3. Requires the VLT for alternative fuel vehicles purchased on or after January 1, 2023 to be determined under the VLT classification for non-alternative fuel vehicles (Sec. 1)
4. Eliminates the gross vehicle weight classification in determining the alternative fuel VLT. (Sec. 1)
5. Makes technical and conforming changes. (Sec. 1)
6. Contains an effective date of January 1, 2020. (Sec. 2)
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Fifty-fourth Legislature HB 2549
First Regular Session Version 3: Caucus & COW
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