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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
vehicle license tax; exemption; military
Purpose
Expands the exemption on vehicle license taxes (VLTs) and registration fees for an active duty member of the U.S. Armed Forces to include the 30 days before deployment and allows qualifying payments to be refunded, rather than prorated in the following year.
Background
A state resident who is a member of the U.S. Armed Forces, including a national guard or reserve unit, deployed in support of a worldwide contingency operation of the U.S. Armed Forces may register or renew the registration of a motor vehicle for one year without payment of registration fees and VLT if the applicant presents satisfactory evidence to the Arizona Department of Transportation. The exemption may be taken only: 1) from the time of deployment until one year after being discharged; and 2) a total of one time by the member, the member's spouse or the member's legally designated representative.
A person who would otherwise qualify for the exemption and whose registration fees and VLT for a motor vehicle were paid while the member of the U.S. Armed Forces was on active military duty is not entitled to a refund but may apply the fees and VLT paid to the next registration period for that vehicle (A.R.S. ยง 28-5811).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Allows, retroactive to six months before the general effective date, a U.S. Armed Forces member who qualifies for the exemption and paid the VLT and registration fees for a motor vehicle while on active military duty to apply for a refund of the payment, rather than prohibiting the member from receiving a refund but allowing the member to apply the payment to the next registration period for that vehicle.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
TI 1/29/25 DP 7-0-0-0
3rd Read 2/26/25 46-12-2
Prepared by Senate Research
March 3, 2025
KJA/AG/slp