Arizona Sen. Michelle Ugenti-Rita proposes law to change vehicle license tax

By Greg Hahne
Howard Fischer/Capitol Media Services
Published: Monday, December 13, 2021 - 11:17am

State Sen. Michelle Ugenti-Rita has proposed a law that would base license taxes on the purchase price of a vehicle. That is a departure from the current way things are done, which bases them on the MSRP. 

A spokesperson for the Motor Vehicle Department says they have a subscription to provide information on what factors into cars' suggested retail prices. Still, Ugenti-Rita, a Republican who is also running for secretary ofstate, says it’s not fair to charge a tax on a price people don’t pay.

“When you go and buy something at the store you pay the tax on the price that you purchase at, not at the suggested retail price," Ugenti-Rita said. 

If done this way, the MVD would require a vehicle-by-vehicle calculation to determine the tax.