Assigned to TAT FOR COMMITTEE ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session FACT SHEET FOR H.B. 2062 military; purple heart; VLT exemptions Purpose Exempts a Purple Heart medal recipient who received an honorable discharge from the U.S. military from a vehicle license tax (VLT) and vehicle registration fee (registration fee). Background The Arizona Department of Transportation (ADOT) must not collect a VLT or registration fee from a: 1) veteran residing in Arizona for a vehicle acquired by financial aid from the U.S. Department of Veterans Affairs (U.S. VA); or 2) veteran for a personally-owned vehicle, or a veteran and another party owning a vehicle, if the veteran is certified by the U.S. VA as having a 100 percent disability and drawing compensation on that basis. The exemption applies to the surviving spouse of the veteran with a disability until the surviving spouse's remarriage or death (A.R.S. ยง 28-5802). A Joint Legislative Budget Committee fiscal note estimates that the Purple Heart exemption would reduce VLT and registration fee revenues by $117,900 in FY 2023, which includes $27,900 from the State Highway Fund, $1,000 from the State General Fund, $300 from the Department of Public Safety and $88,700 in local government revenues (JLBC fiscal note). Provisions 1. Prohibits a registering officer from collecting a VLT and registration fee from a veteran for a personally-owned vehicle or a veteran and another party owning a vehicle if the veteran: a) is a bona fide Purple Heart medal recipient; b) was honorably discharged from the U.S. military; and c) submits satisfactory proof to ADOT, on initial registration of the vehicle, that the person is a veteran, a bona fide Purple Heart medal recipient and was honorably discharged. 2. Applies the exemption from a VLT and registration fee to only one vehicle. 3. Becomes effective on the general effective date. House Action TRANS 2/9/22 DPA 12-0-0-0 3 rd Read 2/24/22 59-0-1 Prepared by Senate Research March 17, 2022 RA/sr