Reduced Alternative Fuel Vehicle (AFV) License Tax

The vehicle license tax for an AFV is $4 for every $100 in assessed value. During the first year after initial registration, the AFV's assessed value is 1% of the manufacturer's base retail price (compared to 60% for conventional vehicles). For each succeeding year, the original value of the AFV is reduced by 15%. The minimum amount of the annual AFV license tax is $5. 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. See the Arizona Department of Transportation Alternative Fuel Vehicle page for more information. (Reference Arizona Revised Statutes 28-5805 and 28-5801)

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