Assigned to PS                                                                                                                        FOR COMMITTEE

 

 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

REVISED

FACT SHEET FOR h.b. 2009

 

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 payment to the next registration period for that vehicle (A.R.S. § 28-5811).

The Joint Legislative Budget Committee fiscal note indicates H.B. 2009 would have a negligible fiscal impact (JLBC Fiscal Note).

Provisions

1.   Adds a member of the U.S. Armed Forces who has valid orders and is within 30 days of deployment to the persons eligible for the VLT and registration fee exemption.

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, with a retroactive provision as noted.

 

Revisions

· Updates the fiscal impact statement.

House Action

TI                    1/29/25      DP     7-0-0-0

3rd Read          2/26/25                 46-12-2

Prepared by Senate Research

March 11, 2025

KJA/AG/slp