What is Arizona's automobile tax rule? (sales, 2014, buy)

[jerseyexpat]

I have been reading about this tax, can you share your experience?
When and How is it paid?
Does it include automobiles purchased in state?
If I am moving from another state, are my cars subject to this tax?
I know that there are retirees that live in Arizona, some rich, and some have several cars...

[KurtAZ]

If you buy a car in the state you have to pay sales tax (at a dealership) and then registration every year after that. What Tax are you referring to?

[Hoonose]

When you register your vehicles in AZ you pay the tax. Then you pay yearly with your license plate renewal. I don't know the specifics, but the tax is based on its retail value. So it goes down every year. Typical cars seem to run in a broad range of about $100 - $1000 a year. My wife's 2008 Lincoln was a few hundred. I think my 2011 Traverse was about $500.

[Finger Laker]

Could be the Arizona Vehicle License Tax

Vehicle License Tax Distribution

In addition to other fees, vehicle owners in Arizona pay a Vehicle License Tax (VLT), assessed in place of a personal property tax charged by some other states. Revenues from the Vehicle License Tax are distributed as follows: State Highways 22.72 percent, County Roads 14.38 percent, City Roads 13.72 percent, County General Fund 24.59 percent and City/Town General Fund 24.59 percent.

Renewal

There used to be a schedule online that broke down the formula for calculating the tax, but the MVD page has been updated and is now a real pain to navigate .... it's basically a percentage of the depreciated original cost of the vehicle

If you buy a vehicle out of state you will still need to register it in state - the tax is part of your registration

You could circumvent some sales tax though - although technically you are supposed to declare such purchases under most conditions

[jerseyexpat]

Yes, I am referring to the VLT tax. thanks.

when does that tax that I pay get to "$0." If I buy a 2014 benz there and pay $1,000 in tax the first year and it declines year over year, does it ever reach "$0"???

[jerseyexpat]

So, even if I take both my cars there and register them, I am still subject to the tax?

[jerseyexpat]

From what I read about the VLT you pay it every year (60% of the base value of the suggested retail price)...when does it end, if ever?

[Finger Laker]

Yes. With few exceptions (non-profit, disabled vets, etc) you are subject to the VLT.

It exists annually as long as you own the vehicle

As your vehicle ages, the tax decreases. You can go for a couple years at a time on most vehicles.

Also, on your state income tax return you can put it is as a line item for a deduction on your taxable income (or something to that extent.....)

[Hoonose]

You pay yearly tax on every vehicle and it never goes to zero.

[jerseyexpat]

No car I own now was worth more than $25,000 new, so in my case then I would probably pay around $600 for both.