Arizona Sales Tax

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Information from NADA Title & Registration Textbook 2004

 

Arizona Sales or Use Tax Applicable to Registration

 

Sales or use tax is paid on vehicle purchased by residents AND non-residents. Credit allowed for taxes paid to another state. NON-RESIDENT MILATRY PEOPLE are NOT exempt from sales tax as of 12/15/03. Sales or use tax is 5.6% and applicable county and city taxes. Taxes are paid to the dealer unless it is a vehicle purchased out-of-state. Then any state Taxes due would be paid at the Title and Registration Office. When a customer receives two vehicles at a total price less than or equal to the value of a single vehicle traded in on the two vehicles, the vendor may take the trade-in deduction and not owe transaction privilege tax on the sale of the two vehicles if the sale is made as a single sale on one invoice. However, if the sale of the two vehicles is shown on two separate invoices, the trade-in deduction may only be taken on one of the invoices. Transaction privilege tax would be due on the invoice not showing the trade-in.