What is Arizona's automobile tax rule?

[Finger Laker]

Really hard to say - depends on how long you have had them as well

Looks like this is the formula - took it from an earlier thread here as the MVD page is a mess, but it looks right

The state also charges a vehicle license tax (VLT) at every registration and renewal. This tax is assessed for each $100 of your vehicle’s value. Note that the value of your vehicle is calculated as 60% of the original manufacturer’s retail price, and that total will be lowered by 16.25% at every registration renewal.
For each $100 of the vehicle’s value, you will be assessed:

• New vehicles: $2.80.
• Used vehicles: $2.89.

So for your $25,000 vehicle it looks like if you bought it new you would pay $25,000*.60 = $15,000/$100 = $150 X $2.80 = $420 for year one


However, if it were 5 years old that $25,000 vehicle would have the following values:

1. $15,000
2. $12,562.5
3. $10,521.09
4. $8,811.41
5. $7,379.55

So let's say that they used a $7,380 value for the 5th year on that vehicle, that would be 73.8 x $2.89 = $213.28

If you had two vehicles that were 5 years old and had an original cost value of $25,000 then you would be looking at over $400 on the VLT

[jerseyexpat]

From this math I would be paying this for as Long as I lived in AZ. Can't escape taxes but the philosophy with this is that it only affects those that choose to have cars. So someone with two cars on average would pay $1,000 a year, granted if their cars new were under $25,000. Does this affect motorcycles?

[Finger Laker]

You're going to pay it ... absolutely ... just like you're going to register your vehicles .... it definitely diminishes over time though

The first step into figuring out your cost is to figure out what your initial starting point is ... then depreciate that amount and apply the applicable tax rate

You register a motorcycle, you'll have the same tax - it is a vehicle

You can't say what someone would pay on "average" for two vehicles ........... my wife and I are in the $200 - $250 range for two vehicles that probably had an average cost new of around $25,000 ($27k for hers, $23k for mine)

whoops .... just noticed my math was off .... i thought that # was a little high

let me go back and edit - I forgot to apply the 60% discount in year 1

[Finger Laker]

OK - fixed that .... was looking at my own situation and realized that I forgot to discount the original 60% .... fixed now

sorry about that

[jerseyexpat]

Thanks, now I know.

[KurtAZ]

Huh...25 years in the valley and never realized that we paid a VLT...Just figured it was the Registration every year. Guess you learn something everyday.

[observer53]

Originally Posted by KurtAZ

Huh...25 years in the valley and never realized that we paid a VLT...Just figured it was the Registration every year. Guess you learn something everyday.

If you actually look at the breakdown on your registration, it shows the portion designated as the VLT, which, as others have indicated, is tax deductible if you itemize.

[KurtAZ]

Originally Posted by observer53

If you actually look at the breakdown on your registration, it shows the portion designated as the VLT, which, as others have indicated, is tax deductible if you itemize.

I think I subconsciously ignore it so I don't get mad that I am being charged a tax repeatedly on an item. It was one of those sticking points when we were looking at moving to the NorthEast. Ah well...they are going to get it one way or the other.

[bobyliz]

Arizona Taxes Segmented in following section • Personal Income Tax • Gas Tax • Property Tax • Vehicle Tax • Property tax on household goods or intangible personal property • Arizona Sales Tax Lets talk about Vehicle tax The fee to obtain a driver license is between $10 and $25. You can determine how much it will cost you at the Motor Vehicle Department web site. The fee to register your vehicle is generally less than $15, but there is an additional vehicle license tax (VLT) assessed at the time of registration. This is the equivalent of the personal property tax charged by other states. The more valuable your vehicle, the higher the VLT will be.