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  • Writer's pictureArizona Senate Republicans

Sen. Michelle Ugenti-Rita Introduces Bill to Further Reduce Vehicle License Tax

Tuesday, December 14, 2021


Sen. Michelle Ugenti-Rita Introduces Bill to Further

Reduce Vehicle License Tax

(Phoenix, State Capitol) --- Senator Michelle Ugenti-Rita introduced SB1019 (VLT; vehicle sale price) to assess vehicle license taxes based on the actual sale price of a vehicle rather than the current manufacturer’s base retail price. This is another step in addressing Arizona’s egregious vehicle license tax after successfully repealing the $32 public safety fee.

Vehicle License Tax (VLT) is constitutionally required for each year of a vehicle's registration and decreases with the age of the vehicle. Currently, the formula for determining each vehicle's VLT is based on the manufacturer's base retail price (commonly known as Manufacturers Suggested Retail Price (MSRP)) rather than the price that was actually paid for the vehicle.

Senator Ugenti-Rita believes taxes should be accurately assessed and as low as possible. "To me this is truth in taxation. I am unaware of any other transaction where the tax is based on the list price of an item rather than the price paid, if they are different. Cars are very expensive and people work very hard to get the lowest price possible. To then have the state come along and tax it for more than was paid is absurd. I have a record of reducing this tax and even attempted to repeal the requirement to put the sticker on your license plate to further reduce the cost.”


For more information, contact:

Kim Quintero, Director of Communications

Arizona State Senate Republican Caucus

Office: 602-926-3927

196 views1 comment

1 comentario

16 dic 2021

Dear Sen. Ugenti-Rita,

The base manufacturer's price is usually lower than the sticker price that often includes such things as undercoating, pin-striping, and other options added at the dealership. So it is very possible that the base price is lower than what the buyer is paying. Also, because of the supply-chain issues, is has become difficult to obtain automobiles and they are often selling at prices far above either manufacturer or sticker prices! It would seem prudent to continue taxing at base manufacturer's price in these volatile times, and I suspect would result in lower taxes. Is there data indicating that buyers in Arizona, on the average, are paying less for an automobile than base manufacturer's price?

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