Valuation and Tax

Valuation and Tax

Using industry sources and dealer price guides, the Motor Vehicle Division Aircraft Registration Unit of ADOT determines the value of aircraft annually for tax purposes. The value assessed is based on the average fair market value for the make, model and year of the aircraft. No consideration is given to condition, equipment or purchase price.

Tax Calculation

The tax rate is one-half of one per cent (0.005) of the assessed value of the aircraft, but not less than $20. For aircraft entering the state, either purchased from a dealer or returned to service from storage, salvage or repair status, the tax is prorated based on the number of months the aircraft is in Arizona. There is no provision for refunding the tax if the aircraft leaves the state or is placed in storage during the year.

Aircraft in storage during the entire year are subject to a flat tax of $20. Upon receipt of the registration application, the value of the aircraft will be assessed, the taxes due will be calculated and an aircraft registration assessment notice will be mailed to the owner.

Sample Calculation

Fair Market Value


Tax Rate (one-half of one per cent)


Annual License Tax


Per Month Prorate (1/12)


Aircraft entered in April

x 9

License Tax Payable


Registration Fee


Amount Due


Nonresident Tax

Aircraft license tax for nonresidents is based on the total number of days the aircraft is in the state during the calendar year.

1-90 days

No charge

91-209 days

0.1% (0.001) average fair market value

210-365 days

0.5% (0.005) average fair market value