Reduced Alternative Fuel Vehicle (AFV) License Tax
The vehicle license tax for an AFV registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:
- AFVs registered prior to January 1, 2022: 1% of the manufacturer’s suggested retail price (MSRP)
- AFVs initially registered between January 1, 2022 and December 31, 2022: 20% of the MSRP.
For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.
(Reference Arizona Revised Statutes 1-215, 28-5801, 28-5805)