SB 1620 Summary

• Creates a tax exemption for motor vehicle sales to nonresidents of Arizona who secure a special ninety day nonresident registration permit, provided the purchaser's state of residence either does not allow a corresponding use tax exemption or imposes a lower excise tax rate than Arizona.

• Requires motor vehicle dealers to obtain and retain specific documentation from nonresident purchasers, including a completed certificate, valid out-of-state driver's license, and proof of delivery to an out-of-state location or proof of commercial vehicle status.

• Establishes joint procedures between the Department of Transportation and Department of Revenue to develop and enforce compliance forms and requirements for nonresident motor vehicle sales.

• Amends transaction privilege tax (TPT) and use tax code sections to implement motor vehicle exemptions and deductions based on nonresident status and registration permits, protecting dealers from liability when they comply with required documentation procedures.

• Allows municipalities to tax motor vehicle sales to nonresidents only in specific circumstances: when the purchaser's state does not allow a corresponding use tax exemption, or when an enrolled tribal member takes possession on their reservation.