HB 2252
Initials JB Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: COM DPA 10-0-0-0 | 3
rd
Read 56-0-4-0
Senate: COM DPA/SE 5-2-0-0 | 3
rd
Read 19-11-0-0
HB 2252: inmates; documentation; workforce reentry
NOW: motor vehicle manufacturers; TPT; exemption
Sponsor: Representative Wilmeth, LD 2
Senate Engrossed
The House Engrossed version of HB 2252 prescribed requirements for the Arizona Department
of Corrections to assist an inmate in workforce reentry.
The Senate adopted a strike-everything amendment that does the following:
Overview
Establishes a special 30-day non-resident registration permit for non-residents purchasing an
unregistered vehicle in this state to be taken out of the state. Exempts the sale of motor vehicles
to non-residents of this state by a motor vehicle dealer from the Transaction Privilege Tax (TPT)
and applicable county excise taxes if the non-resident purchaser has obtained a special 30-day
non-resident registration permit.
History
A non-resident who purchases an unregistered vehicle in this state for removal from this state to
the purchaser's state of residence must obtain a special 90-day non-resident registration permit
for the vehicle. The non-resident will obtain the 90-day special permit by applying to the Arizona
Department of Transportation (ADOT), an authorized third party or motor vehicle dealer. The non-
resident must pay a $15 fee for each special 90-day non-resident registration. An affidavit in a
form prescribed by the Director of ADOT must accompany the application and contain the
following statements:
1) the purchaser is not a resident of this state. The non-resident is required to present to
ADOT, the authorized third-party or vehicle dealer a driver's license or other evidence
prescribed by ADOT's director showing that the purchaser is not a resident of this state;
2) the vehicle is purchased to be registered out of the state within 90-days after the issuance
of the special permit;
3) the vehicle is not purchased for transfer to a resident of this state; and
4) other information the director of ADOT deems necessary.
At the time of application for a special 90-day non-resident registration permit, the non-resident
must submit proper evidence of ownership of the vehicle. The special 90-day non-resident
registration permit is only valid for 90 days from the date of issuance and will be in the form
prescribed by the Director of ADOT. (A.R.S. §§ 28-2003, 28-2154).
The sale of motor vehicles to non-residents of this state for use outside this state is exempt from
TPT, sales or another similar tax if:
1) the motor vehicle dealer ships or delivers the motor vehicle to a destination outside this
state; and HB 2252
Initials JB Page 2 Senate Engrossed
2) the vehicle, trailer or semitrailer has a gross vehicle weight of more than 10,000 pounds
and is used or maintained to transport property in the furtherance of interstate commerce
or otherwise meets the definition of commercial motor vehicle (A.R.S. § 42-6004)
A Joint Legislative Budget Committee (JLBC) fiscal note for this act estimates the loss of
approximately $1.2 million in General Fund revenues in FY 2024 due to non-resident drive-outs
being exempt from TPT for the first time. Based on ADOT data, non-residents purchase 60,000
vehicles each year. JLBC estimated that 1% to 2% of the non-resident sales are drive-outs.
Provisions
1. Allows a motor vehicle dealer to issue a special 30-day non-resident registration permit (30-
day permit) (Sec. 3)
2. Requires the motor vehicle dealer to send an electronic record of a 30-day permit to ADOT.
(Sec. 3)
3. Allows a motor vehicle dealer to issue, assign or deliver a 30-day permit to a person who has
done the following:
a) obtain a 30-day permit following the outlined requirements;
b) completes the affidavit required to accompany the permit application in a form prescribed
by the director of ADOT or completes the form prescribed by the Department of Revenue
(DOR) for the certificate used to establish the satisfaction of the criteria necessary to
qualify for the sale of a motor vehicle;
c) presents a current valid driver's license issued by another state indicating an address
outside of this state to the motor vehicle dealer; and
d) provides any other information reasonably and uniformly required by ADOT. (Sec. 3)
4. Prohibits a motor vehicle dealer from issuing more than 500 30-day permits in FY 2024, the
limit increases by 10% each FY thereafter. (Sec. 3)
5. Restricts a motor vehicle dealer from issuing a 30-day permit unless the permit is recorded in
ADOT's electronic records. (Sec. 3)
6. Directs a motor vehicle dealer that issues a 30-day permit to affix or insert on the face of each
permit the dates of issuance and expiration and the make and vehicle identification number
of the vehicle.
7. Prohibits the 30-day permit from bearing the name or address of the person who purchased
the vehicle in a position that is legible from outside the vehicle. (Sec. 3)
8. Requires a motor vehicle dealer that issues 30-day permits to maintain a record in a form
prescribed by the director of ADOT of all 30-day permits issued by the motor vehicle dealer
and a record of other information on the issuance of the permits that ADOT or DOR requires.
(Sec. 3)
9. Directs a motor vehicle dealer to keep each record for at least three years after the date of
entry. (Sec. 3)
10. Instructs the motor vehicle dealer to allow the directors of ADOT or DOR full and free access
to the records during regular business hours. (Sec. 3)
11. States the electronic record is written notice of the removal of the vehicle from this state for
use in the purchaser's state of residence and relieves the dealer or authorized third party of
liability. (Sec. 3)
12. Declares that if a purchaser registers the vehicle in this state within 365 days after the
issuance of the 30-day permit, the purchaser is liable in an amount equal to any tax, penalty HB 2252
Initials JB Page 3 Senate Engrossed
and interest that the dealer or authorized third party would have been required to pay under
applicable law. (sec. 3)
13. Requires a motor vehicle dealer to inform the purchaser in writing of the purchaser's liability
at the time the 30-day permit is issued. (Sec. 3)
14. Specifies subsequent registration or use of the vehicle in this state does not create a cause
of action against a dealer or authorized third party that complied with applicable law. (Sec. 3)
15. Directs ADOT and DOR to jointly develop and prescribe forms for the motor vehicle dealer
and purchaser to complete for the proper administration and enforcement of this act. (Sec. 3)
16. Stipulates that compliance with this act allows delivery of the vehicle to a non-resident
purchaser in this state. (Sec. 3)
17. Permits a non-resident who purchases an unregistered vehicle in this state from a motor
vehicle dealer to obtain a 30-day permit (Sec. 2)
18. Stipulates the non-resident must apply to the motor vehicle dealer and pay the applicable fees
for a 30-day permit. (Sec. 2)
19. Outlines requirements for a 30-day non-resident permit application. (Sec. 2)
20. Requires an affidavit accompanying the non-resident registration permit application to state
that the vehicle is purchased to be registered out of state within 30 days after the issuance of
the 30-day permit. (Sec. 2)
21. States a 30-day permit is valid for only 30 days from the date of issuance and will be in a form
prescribed by the director of ADOT. (Sec. 2)
22. Authorizes ADOT to establish a fee by rule for each 30-day permit. (Sec. 1)
23. States that compliance with this act exempts the gross proceeds or income from the sale of a
motor vehicle to a nonresident purchaser in this state who has secured a 30-day permit from
the state TPT and applicable county excise taxes. (Sec. 3)
24. Exempts sales of a motor vehicle by a motor vehicle dealer to a non-resident purchaser who
has obtained a 30-day permit from the TPT tax base. (Sec. 4)
25. Allows a city or town to levy a transaction privilege tax on the gross proceeds of sales or gross
income derived from the sale of a motor vehicle to a nonresident of this state who has secured
a 30-day permit for the motor vehicle. (Sec. 5)
26. States this act applies to taxable periods beginning on or after the first day of the month
following the general effective date. (Sec. 6)
27. Makes technical and conforming changes. (Sec. 1, 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note