AZDOT Motor Vehicle Services 3 — Questions and Answers
Question 1: In Arizona, what does the Vehicle License Tax (VLT) replace that most other states charge?
- Sales tax on vehicle purchases
- Annual personal property tax on vehicles (Correct answer)
- Emissions testing fees
- Title transfer fees
Correct answer: Annual personal property tax on vehicles
Arizona's VLT is an annual fee that substitutes for the personal property tax that many states levy on registered vehicles.
Question 2: How is the Arizona Vehicle License Tax (VLT) calculated for a new vehicle in its first year?
- 2% of the MSRP
- 60% of the MSRP multiplied by $2.80 per $100 (Correct answer)
- 1.5% of the purchase price
- $200 flat fee per vehicle
Correct answer: 60% of the MSRP multiplied by $2.80 per $100
Arizona VLT is calculated as 60% of the manufacturer's base retail price (MSRP) multiplied by $2.80 for each $100 of that assessed value.
Question 3: Which of the following vehicles is exempt from Arizona emissions testing requirements?
- A 2005 gasoline-powered pickup truck registered in Maricopa County
- A diesel truck with a GVWR over 8,500 lbs (Correct answer)
- A 1995 passenger car registered in Pima County
- A hybrid vehicle registered in Phoenix
Correct answer: A diesel truck with a GVWR over 8,500 lbs
Diesel-powered vehicles and those with a gross vehicle weight rating over 8,500 lbs are generally exempt from Arizona's emissions testing program.
Question 4: What action must an Arizona vehicle owner take when they sell a vehicle to a private buyer?
- Deliver a notarized bill of sale to the MVD within 5 days
- Submit a Notice of Transfer and Release of Liability to the MVD (Correct answer)
- Surrender the license plates at an MVD office
- Cancel their registration immediately online
Correct answer: Submit a Notice of Transfer and Release of Liability to the MVD
Sellers must file a Notice of Transfer and Release of Liability with the MVD to protect themselves from liability for the vehicle after the sale.
Question 5: In Arizona, license plates generally stay with the vehicle owner when a vehicle is sold, EXCEPT for which plate type?
- Standard issue plates
- Specialty plates
- Personalized plates
- Both personalized and specialty plates (Correct answer)
Correct answer: Both personalized and specialty plates
Standard plates remain with the vehicle when sold, but personalized and specialty plates belong to the owner and must be removed before transferring the vehicle.
Question 6: What is the minimum liability insurance coverage required in Arizona for bodily injury to one person in an accident?
- $10,000
- $15,000
- $25,000 (Correct answer)
- $50,000
Correct answer: $25,000
Arizona's minimum auto liability coverage is $25,000 per person / $50,000 per accident for bodily injury and $15,000 for property damage.
Question 7: Which Arizona county does NOT require vehicle emissions testing?
- Maricopa County
- Pima County
- Yavapai County (Correct answer)
- All three require testing
Correct answer: Yavapai County
Emissions testing is only mandated in Maricopa and Pima counties; rural counties like Yavapai are not subject to the program.
AZDOT Motor Vehicle Services 3
In Arizona, what does the Vehicle License Tax (VLT) replace that most other states charge?