SB1148 - 552R

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 either sixty per cent percent of the manufacturer's base retail original actual retail sales price of the vehicle or of the manufacturer's base retail price of the vehicle, whichever is less, if the vehicle is sold in this state or sixty percent of the manufacturer's base retail price of the vehicle if the vehicle is not sold in this state 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 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. The vehicle valuation based on the original actual retail sales price of the vehicle as prescribed in subsection B of this section applies only to a vehicle that is sold from and after the effective date of this amendment to this section.

G. h. 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. Section 28-5804, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5804. Privately owned motor vehicle used as school bus; classification; vehicle license tax

A. A separate classification of motor vehicles is established for purposes of taxation pursuant to article IX, section 11, Constitution of Arizona, that consists of privately owned motor vehicles that are exclusively operated as school buses.

B. Notwithstanding section 28-5801, the registering officer shall collect at the time of application for and before registration of the motor vehicle classified under this section an annual vehicle license tax of four dollars $4 for each one hundred dollars $100 in value. During the first twelve months of the life of the vehicle as determined by its initial registration, the value is either one per cent percent of the manufacturer's base retail original actual retail sales price of the vehicle or of the manufacturer's base retail price of the vehicle, whichever is less, if the vehicle is sold in this state or one percent of the manufacturer's base retail price of the vehicle if the vehicle is not sold in this state. During each succeeding twelve month twelve-month period the value of the vehicle is fifteen per cent percent less than the value of the preceding twelve month twelve-month period.

C. The minimum amount of the license tax computed under this section is five dollars $5 per year for each vehicle subject to the tax.

D. Except as specifically provided in this section, the vehicle license tax on a vehicle classified under this section is governed by this article.

E. If a school bus is temporarily operated for purposes other than those prescribed by section 28-101, the registering officer shall:

1. Assess and collect monthly a vehicle license tax equal to one-tenth of the annual vehicle license tax provided in section 28-5801 for each calendar month that the motor vehicle is so operated in this state.

2. Not apportion the vehicle license tax for any fraction of a calendar month.

F. The vehicle valuation based on the original actual retail sales price of the vehicle as prescribed in subsection B of this section applies only to a vehicle that is sold from and after the effective date of this amendment to this section. END_STATUTE

Sec. 3. Section 28-5805, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5805. Motor vehicle powered by alternative fuel; classification; vehicle license tax; definitions

A. A separate classification of motor vehicles is established for purposes of taxation pursuant to article IX, section 11, Constitution of Arizona, that consists of motor vehicles that are powered by alternative fuel and for which the department issues an alternative fuel vehicle special plate or sticker pursuant to section 28-2416.

B. Notwithstanding section 28-5801, the registering officer shall collect at the time of application for and before registration of the motor vehicle that is classified under this section an annual license tax of $4 for each $100 in value. The motor vehicle value is determined as follows:

1. For a motor vehicle that is registered in this state before January 1, 2022, the value of the motor vehicle is either one percent of the manufacturer's base retail original actual retail sales price of the motor vehicle or of the manufacturer's base retail price of the vehicle, whichever is less, if the vehicle is sold in this state or one percent of the manufacturer's base retail price of the vehicle if the vehicle is not sold in this state. After the first twelve months of the life of the motor vehicle as determined by its initial registration, the value of the motor vehicle is fifteen percent less for each twelve-month period than the value for the preceding twelve-month period.

2. For a motor vehicle that is initially registered in this state during a period beginning January 1, 2022 and ending December 31, 2022, during the first twelve months of the life of the motor vehicle as determined by its initial registration, the value of the motor vehicle is either twenty percent of the manufacturer's base retail original actual retail sales price of the motor vehicle or of the manufacturer's base retail price of the vehicle, whichever is less, if the vehicle is sold in this state or twenty percent of the manufacturer's base retail price of the vehicle if the vehicle is not sold in this state. During each succeeding twelve-month period, the value of the motor vehicle is fifteen percent less than the value for the preceding twelve-month period.

C. The registering officer shall collect the vehicle license tax on a motor vehicle that is powered by alternative fuel and that is purchased from and after December 31, 2022 in accordance with section 28-5801.

D. The minimum amount of the license tax computed under this section is $5 per year for each motor vehicle subject to the tax.

E. Except as specifically provided in this section, the vehicle license tax on a motor vehicle classified under this section is governed by this article.

F. The vehicle valuation based on the original actual retail sales price of the vehicle as prescribed by subsection B of this section applies only to a vehicle that is sold from and after the effective date of this amendment to this section.

F. g. For the purposes of this section:

1. "Alternative fuel" has the same meaning prescribed in section 1-215.

2. "Motor vehicle" means a vehicle that meets the safety standards of the national highway traffic safety administration and includes:

(a) Neighborhood electric vehicles that meet the standards prescribed in 49 Code of Federal Regulations section 571.500, except that, if a vehicle is designed to be operated at speeds of twenty miles per hour or less, the vehicle is not required to have a seventeen digit vehicle identification number.

(b) Neighborhood electric shuttles. END_STATUTE

Sec. 4. Section 28-5806, Arizona Revised Statutes, is amended to read:

START_STATUTE28-5806. Privately owned motor vehicle used for ambulance or firefighting services; classification; vehicle license tax; definition

B. Notwithstanding section 28-5801, at the time of application for and before registration of the motor vehicle classified pursuant to subsection A of this section the registering officer shall collect an annual license tax at the rate of four dollars $4 for each one hundred dollars $100 in value. During the first twelve months of the life of the vehicle as determined by its initial registration, the value is either one per cent percent of the manufacturer's base retail original actual retail sales price of the vehicle or of the manufacturer's base retail price of the vehicle, whichever is less, if the vehicle is sold in this state or one percent of the manufacturer's base retail price of the vehicle if the vehicle is not sold in this state. During each succeeding twelve month twelve-month period the value of the vehicle is fifteen per cent percent less than the value of the preceding twelve month twelve-month period.

C. The minimum amount of the license tax computed under this section is five dollars $5 per year for each vehicle subject to the tax.

D. Except as specifically provided in this section, the vehicle license tax on vehicles classified pursuant to subsection A of this section is governed by this article.

E. If a vehicle is temporarily operated for purposes other than providing ambulance or fire fighting firefighting services, the registering officer shall:

1. Assess and collect monthly a vehicle license tax equal to one-tenth of the annual vehicle license tax provided for by section 28-5801 for each calendar month that the motor vehicle is so operated in this state.

2. Not apportion the vehicle license tax for any fraction of a calendar month.

f. The vehicle valuation based on the original actual retail sales price of the vehicle as prescribed by subsection B of this section applies only to a vehicle that is sold from and after the effective date of this amendment to this section.

F. g. For the purposes of this section, "ambulance" means a vehicle for which a certificate of registration has been issued pursuant to title 36, chapter 21.1. END_STATUTE