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Arizona discourages EV purchases

Ticarterdaniell

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Let's hope our Launch Editions show up in 2021!
Arizona's licencing fees for EV is based on MSRP.
1% from now until the end of 2021 then,
20% from Jan. 1 2022 on...
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electruck

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Arizona's licencing fees for EV is based on MSRP.
1% from now until the end of 2021 then,
20% from Jan. 1 2022 on...
I'm assuming 20% of MSRP is used to calculate assessed value and then there's a tax based on this assessed value, so effectively much lower, right?
For a second I was scared that you have to pay 20% of MSRP as a license tax :D
 

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timesinks

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I'm assuming 20% of MSRP is used to calculate assessed value and then there's a tax based on this assessed value, so effectively much lower, right?
For a second I was scared that you have to pay 20% of MSRP as a license tax :D
Looks like it. Tax is 4% of assessed value. EVs have a 99% break in that assessed value until 2022 when the break is reduced to 80%. That still only amounts to 0.32% of MSRP in 2022 or $256 on an $80k R1T. Considering our four year old Volt is about $600/yr in Seattle, I don't event want to know what the R1T is going to cost us to register.

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 each succeeding year, for the purpose of calculating the license tax, the value of the AFV is reduced by 15% from the value from the preceding year.


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 AFVwebsite. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.
 

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It will be $4.00 for every $100 of assessed value (20% of MSRP) for EVs
It's $2.80 for every $100 of assessed value (60% of MSRP) for ICE vehicles.

For a $75K vehicle in 2022
EV: $75,000 x 20% = $15,000. $15,000/$100 = 150. 150 * $4 = $600
ICE: $75,000 x 60% = $45,000. $45,000/$100 = 450. 50 * $2.80 = $1,260.

A $75K EV will still be less than 1/2 the cost to register than an ICE of the same MSRP (just a big jump from the current $30)

It looks like after 2022, there will be no reduction at all for EV registrations (unless the rules change)
 

cohall

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There is also a recent article that is bashing Rivian's price and their culture.
https://blnnews.com/2020/11/22/rivian-not-the-nice-guys/
That might be the most garbage "article" I've ever seen written. Literally no content except to complain about all electric vehicles, and whine that Rivian didn't release sales/pre-order numbers. And lets not forget about all the typos and psychotic comments by conspiracy theorists.

The dark side of the internet scares me sometimes.
 

Babbuino

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That might be the most garbage "article" I've ever seen written. Literally no content except to complain about all electric vehicles, and whine that Rivian didn't release sales/pre-order numbers. And lets not forget about all the typos and psychotic comments by conspiracy theorists.

The dark side of the internet scares me sometimes.
Yeah I had fun reading the comment section :D
 

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azbill

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Back in 2018, I registered my Bolt in Arizona for 5 years at a total cost of $54. I paid 0% VLT. Plus no emissions testing.

It appears they may be backing off the VLT now that EVs are becoming more prevalent. They also added a new $32 annual fee for DPS to every vehicle registration. That happened a few months after I locked in my 5 year registration on my Bolt.
 

azbill

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Here is the formula for standard vehicles:

https://azdot.gov/sites/default/files/2019/08/AZ-registration-fees.pdf

This is based off of a 60% valuation, so I am not sure why the title of the thread is about "discouraging EVs". Even if they go to 20% valuation, that is still one third of other vehicles. Many states are trying to figure out how to deal with lack of gasoline taxes in the long run, but for sure that will take a long time, in order to pay for roads. My guess is that it will not be long before states start taxing DFDC use, just like current gas pumps. Governments always want more of our money.
 

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This is based off of a 60% valuation, so I am not sure why the title of the thread is about "discouraging EVs". Even if they go to 20% valuation, that is still one third of other vehicles
You also have to account for the different tax rate on those valuations.

EVs are charged $4 per $100 (based on 20% of MSRP)
ICE vehicles are charge $2.80 per $100 (based on 60% of MSRP)

Bottom line is EVs pay 48% of an ICE for the valuation portion of the registration
 

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Here is the formula for standard vehicles:

https://azdot.gov/sites/default/files/2019/08/AZ-registration-fees.pdf

This is based off of a 60% valuation, so I am not sure why the title of the thread is about "discouraging EVs". Even if they go to 20% valuation, that is still one third of other vehicles. Many states are trying to figure out how to deal with lack of gasoline taxes in the long run, but for sure that will take a long time, in order to pay for roads. My guess is that it will not be long before states start taxing DFDC use, just like current gas pumps. Governments always want more of our money.
In January 2023 the Arizona license fee will be the same as other vehicles (based on 60%, instead of 20%). So, it would be more accurate to say that Arizona is no longer encouraging alternative fuel vehicles - other than being able to use the HOV lanes (which will also go away, after 2025, if I am not mistaken).
" Per ARS 28-5805, beginning in 2023, alternative fuel vehicles will be assessed VLT using the same formula used for traditional vehicles."
 
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azbill

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In January 2023 the Arizona license fee will be the same as other vehicles (based on 60%, instead of 20%). So, it would be more accurate to say that Arizona is no longer encouraging alternative fuel vehicles - other than being able to use the HOV lanes (which will also go away, after 2025, if I am not mistaken).
" Per ARS 28-5805, beginning in 2023, alternative fuel vehicles will be assessed VLT using the same formula used for traditional vehicles."
My current EVs are grandfather at the low rates. I paid $54 to register my Bolt for 5 years and $74 for my Mach E for 5 years. Both have permanent HOV plates.
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