PHOENIX – Changes to state law mean that drivers who purchase alternative fuel vehicles will pay the same vehicle license tax (VLT) rate as other drivers by 2023. The change in VLT rates is phased-in, starting Jan. 1, 2022.
The VLT is paid during vehicle registration and is assessed in place of a personal property tax often charged in other states. The VLT funds transportation infrastructure in Arizona, including highways, bridges and local roads, and contributes to the general funds of cities/towns and counties.