Senate Engrossed vehicle titles; out-of-state purchase State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1208 AN ACT amending sections 28-2053 and 28-2056, Arizona Revised Statutes; relating to certificates of title. (TEXT OF BILL BEGINS ON NEXT PAGE)
Senate Engrossed vehicle titles; out-of-state purchase
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
SENATE BILL 1208
Senate Engrossed
vehicle titles; out-of-state purchase
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1208
AN ACT
amending sections 28-2053 and 28-2056, Arizona Revised Statutes; relating to certificates of title.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 28-2053, Arizona Revised Statutes, is amended to read: START_STATUTE28-2053. Certificate of title without registration; certificate of title pending registration A. The department may only issue a vehicle certificate of title without registration for a vehicle that is physically present in this state for any of the following reasons: 1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state. 2. The applicant certifies that the vehicle was acquired for purposes other than highway use. 3. The vehicle was acquired by operation of law. 4. The vehicle is an off-road recreational motor vehicle required to be issued a certificate of title pursuant to section 28-2061. B. The department shall issue a certificate of title without registration for either of the following reasons: 1. The owner will register the vehicle under article 7 or 8 of this chapter. 2. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state. c. the department may issue a vehicle certificate of title pending registration for a vehicle purchased out of state if either of the following occurs: 1. the vehicle was sold to a resident of this state by an out-of-state dealer. 2. The vehicle was sold to a RESIDENT of this state by an out-of-state dealer and a lien or encumbrance is filed on the vehicle by an out-of-state dealer or finance company. d. if a vehicle certificate of title is issued pursuant to subsection c of this section, a resident of this state shall complete the registration of the vehicle as prescribed in this chapter. END_STATUTE Sec. 2. Section 28-2056, Arizona Revised Statutes, is amended to read: START_STATUTE28-2056. Transfer or registration of vehicle; collection of use tax A. Except as provided in subsection B of this section, the registering officer shall collect the use tax imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 at the time of application for a transfer of title or registration of a vehicle. The registering officer shall issue a receipt, in a form prescribed by the department, for the amount of tax paid. Except as provided in SUBSECTION b of this section, the registering officer shall not process an application for transfer of title or registration of any vehicle on which the use tax is imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 until the tax is paid. B. The registering officer may process an application for the vehicle certificate of title pending registration issued pursuant to section 28-2053, subsection c without collecting the tax imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 if at the time of registering the vehicle the taxes are collected. B. c. The department of transportation shall notify the department of revenue of taxes collected pursuant to this section. At the end of each month the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, tax monies collected pursuant to this section in the state general fund. C. d. The department of revenue shall provide the department of transportation with the means, including using tax rates applicable to each jurisdiction levying a use tax, to calculate the use taxes required to be collected pursuant to subsection subsections A and B of this section. END_STATUTE[]
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-2053, Arizona Revised Statutes, is amended to read:
START_STATUTE28-2053. Certificate of title without registration; certificate of title pending registration
A. The department may only issue a vehicle certificate of title without registration for a vehicle that is physically present in this state for any of the following reasons:
1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state.
2. The applicant certifies that the vehicle was acquired for purposes other than highway use.
3. The vehicle was acquired by operation of law.
4. The vehicle is an off-road recreational motor vehicle required to be issued a certificate of title pursuant to section 28-2061.
B. The department shall issue a certificate of title without registration for either of the following reasons:
1. The owner will register the vehicle under article 7 or 8 of this chapter.
2. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state.
c. the department may issue a vehicle certificate of title pending registration for a vehicle purchased out of state if either of the following occurs:
1. the vehicle was sold to a resident of this state by an out-of-state dealer.
2. The vehicle was sold to a RESIDENT of this state by an out-of-state dealer and a lien or encumbrance is filed on the vehicle by an out-of-state dealer or finance company.
d. if a vehicle certificate of title is issued pursuant to subsection c of this section, a resident of this state shall complete the registration of the vehicle as prescribed in this chapter. END_STATUTE
Sec. 2. Section 28-2056, Arizona Revised Statutes, is amended to read:
START_STATUTE28-2056. Transfer or registration of vehicle; collection of use tax
A. Except as provided in subsection B of this section, the registering officer shall collect the use tax imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 at the time of application for a transfer of title or registration of a vehicle. The registering officer shall issue a receipt, in a form prescribed by the department, for the amount of tax paid. Except as provided in SUBSECTION b of this section, the registering officer shall not process an application for transfer of title or registration of any vehicle on which the use tax is imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 until the tax is paid.
B. The registering officer may process an application for the vehicle certificate of title pending registration issued pursuant to section 28-2053, subsection c without collecting the tax imposed under title 42, chapter 5, article 4 and under the model city tax code pursuant to title 42, chapter 6, article 2 if at the time of registering the vehicle the taxes are collected.
B. c. The department of transportation shall notify the department of revenue of taxes collected pursuant to this section. At the end of each month the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, tax monies collected pursuant to this section in the state general fund.
C. d. The department of revenue shall provide the department of transportation with the means, including using tax rates applicable to each jurisdiction levying a use tax, to calculate the use taxes required to be collected pursuant to subsection subsections A and B of this section. END_STATUTE[]