trailers; semitrailers;
permanent registration
dpa |
Committee on Transportation |
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dp |
Committee on Appropriations |
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dpa |
Caucus and COW |
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x |
As Transmitted to the Governor |
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Senate Bill 1193 establishes a one-time registration and vehicle license tax fee for trailers or semitrailers exceeding 10,000 pounds gross vehicle weight (GVW).
Currently, trailers or semitrailers over 10,000 pounds GVW pay an annual registration fee of $49. In addition, owners of vehicles that are registered for operation on the highways of Arizona, including trailers, pay the Vehicle License Tax (VLT). It is an ad valorem tax based on the assessed value of the vehicle. During the first 12 months of the life of the vehicle (as determined by its initial registration) the value of the vehicle is 60 percent of the manufacturer’s base retail price. During each succeeding year, the vehicle’s value is depreciated at 16.25 percent. The VLT revenues are distributed to the HURF, State Highway Fund, State General Fund, Cities/Towns, and Counties. According to the Arizona Motor Vehicle Division (MVD), there are 12,016 trailers or semitrailers over 10,000 pounds GVW registered in the state as of December 31, 2000.
Laws 1997, Chapter 292 required a one-time registration and VLT fees for noncommercial trailers that are not travel trailers and weigh less than 6,000 pounds GVW. These fees include a flat rate of $5 and $70 VLT for the registration of trailers already registered in the state. New registrations in the state require a $20 registration fee and a $105 VLT. This legislation extends permanent registration to trailers and semitrailers that exceed 10,000 pounds GVW.
According to information from the Joint Legislative Budget Committee (JLBC) and MVD, and as amended by the Transportation Committee, this legislation has a net positive impact of $995,600 to the State Highway Fund in FY 2001-2002, including an accelerated one-time trailer registration fee, and a one-time vehicle tax revenue of $1,175,600. The Arizona Motor Vehicle Division (MVD) estimates a one-time implementation cost of $180,000. However, MVD will also realize an annual decrease in operation costs of $108,000 due to the elimination of these registration transactions in the future.
In addition, the bill would generate accelerated one-time revenue of $3,276,200 on FY 2002 to the Highway User Revenue Fund (HURF) and VLT distribution to local governments.
Based on ADOT’s assumption that 1000 new trailers are added to the fleet and 1000 trailers are retired from the fleet each year, the bill would have a net annual cost of $284,200 to the SHF beginning in FY 2003, thereby reducing to $711,400 the net positive impact to the SHF in FY 2003. Given the same assumptions, the net positive impact of $3,276,200 to the HURF and VLT distribution to local governments has a net annual decrease of $1,163,800 beginning in FY 2003 thereby reducing the net positive impact to local governments to $2,112,400 beginning in FY 2003.