ARIZONA STATE SENATE
Phoenix, Arizona
(NOW: trailers;
permanent registration; VLT)
An emergency measure that reduces the one-time vehicle license tax (VLT) and registration renewal fees for trailers and semitrailers registered in this or any other state over 10,000 pounds gross vehicle weight (GVW) and based on the model year.
Prior to January 1, 2002, VLT was assessed by a rate applied to each $100 of a vehicle’s value. For a new trailer, the trailer’s value was considered to be 60 percent of the manufacturer’s base price. Following the initial year, the value of a trailer was 16.25 percent less per year than the prior year’s value. After six years, the VLT for a continuously owned trailer would be ten dollars. Laws 2001, Chapter 154 required the owners of trailers and semitrailers to pay a set amount for both the VLT ($550 for initial and $350 for renewal) and registration fee ($245 for initial and $145 for renewal). This raised the VLT for trailers and semitrailers over six years old from ten dollars to $350.
According to the Joint Legislative Budget Committee, H.B. 2507 will result in a one-time decrease in revenue of $2,187,400 in FY 2002-2003 to the State Highway Fund (SHF) and appropriates $400,000 in FY 2002-2003 from the SHF to the Arizona Department of Transportation (ADOT) for implementation costs. Annual revenue to the SHF decreases $124,100 beginning in FY 2003-2004.
1. Prescribes the one-time fee for renewal of registration or previously registered in another state for a trailer or semitrailer that exceeds 10,000 pounds GVW as follows:
a) $145 if the model year is less than six years old.
b) $95 if the model year is at least six years old.
2. Prescribes the one-time VLT on renewal registration or previously registered in another state for trailers or semitrailers that exceed 10,000 GVW as follows:
a) $350 if the model year is less than six years old.
b) $100 if the model year is at least six years old.
3. Appropriates $200,000 in FY 2002-2003 from the state highway fund to ADOT for implementation costs.
4. Contains a retroactivity clause of August 31, 2001.
5. Becomes effective on signature of the Governor.
TRANS 3/06/02 DPA/SE 9-0-1-0
APPROP 4/02/02 DPA/SE 10-0-0-6
3rd Read 4/08/02 46-4-10-0
Prepared by Senate Staff
April 15, 2002