Assigned to PS AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1208
vehicle titles; out-of-state purchase
Purpose
Allows a vehicle certificate of title pending registration to be issued for a vehicle purchased
by a state resident from an out-of-state dealer as prescribed.
Background
A person must apply to the Arizona Department of Transportation (ADOT) for a certificate
of title to a motor vehicle, trailer or semitrailer on a form prescribed or authorized by ADOT. The
person must apply within 15 days after the purchase or transfer of the vehicle, trailer or semitrailer.
A licensed motor vehicle dealer may make the application within 30 days after the purchase or
transfer. All transferees must sign the application (A.R.S. § 28-2051).
A person must apply to ADOT for the registration of a motor vehicle, trailer or semitrailer
on a form prescribed or authorized by ADOT. The person must include required fees and the
certificate of title to the vehicle for which registration is sought. The registering officer may waive
the requirement of a certificate of title at the time of making an application for renewal if the
registering officer has available complete and sufficient records to accurately compute the vehicle
license tax (A.R.S. § 28-2157).
A vehicle that is purchased from an out-of-state dealer and registered in Arizona is subject
to a state vehicle use tax of 5.6 percent and a city vehicle use tax (ADOR).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Authorizes ADOT to issue a vehicle certificate of title pending registration for a vehicle
purchased out of state if:
a) the vehicle was sold to a state resident by an out-of-state dealer; or
b) the vehicle was sold to a state resident by an out-of-state dealer and a lien or an
encumbrance is filed on the vehicle by an out-of-state dealer or finance company.
2. Requires a state resident to complete the registration of a vehicle that is issued a certificate of
title pending registration.
3. Allows a registering officer to process an application for a transfer of title or registration
without collecting vehicle use taxes if the taxes are collected when registering the certificate
of title pending registration. FACT SHEET – Amended
S.B. 1208
Page 2
4. Requires the Arizona Department of Revenue (ADOR) to provide ADOT with the means to
calculate vehicle use taxes for vehicles that are issued a certificate of title pending registration.
5. Makes conforming changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Stipulates that a certificate of title pending registration may be issued for a vehicle purchased
out of state if a lien or encumbrance is filed on the vehicle by an out-of-state dealer or finance
company and the vehicle was sold to a state resident by an out-of-state dealer.
2. Allows a registering officer to process a transfer of title or registration applications without
collecting vehicle use taxes if those taxes have already been paid.
3. Requires ADOR to provide ADOT with the means to calculate vehicle use taxes.
4. Makes conforming changes.
Senate Action
PS 2/5/25 DP 7-0-0
Prepared by Senate Research
February 26, 2025
KJA/AG/slp