Commercial Vehicles

When it is determined the vehicle has been converted, the new manufacturer base retail price (MBRP) also known as the factory list price (FLP) herein after referred to as the FLP, is established by:

• Adding the FLP of the cab and chassis vehicle to the FLP of the new equipment
  • The CSR will use the FLPs listed by the manufacturer or when unavailable, the price shown on the invoice
  • This is done because the vehicle is no longer the vehicle originally built by the manufacturer and the original FLP alone cannot be used for determining the correct valuation

When the owner is unable to provide this information, the cost of the conversion will be calculated by referring to the Truck Body Blue Book, its supplements or any similar publications. When the CSR is unable to determine the conversion cost using the method above, a written statement from the owner declaring the cost of the used equipment will be accepted upon approval from an upline approver.

All other title and registration requirements remain in effect.

Initial title and registration of a cab and chassis vehicle that has been converted to the correct body style requires the following and would waive the inspection requirement:

• The Manufacturer’s Certificate of Origin (MCO) or Certificate of Title
• Conversion invoices or bills of sale
  • The invoices or bills of sale must describe the additions to the cab and chassis vehicle

A physical inspection is required on initial titling and/or registering to determine whether additional equipment has been added to the cab and chassis.

When a vehicle has not been converted to a correct body style. The vehicle will be titled with a body style of cab and chassis.

When the vehicle has finally been converted to a correct body style, the vehicle will need:

• A Level I Vehicle Inspection
• A new title to reflect the correct body style and the adjusted FLP

View the Vehicle Inspections topic for more information.

Commercial vehicles have several different terms that go with this type of registration and transfer of title. Some of those terms, but not limited to, are as follows:

• Commercial Vehicle – is any self-propelled or towed motor vehicle used on a highway, within Arizona, for business to transport passengers or property
• Declared Gross Weight – is the gross weight in pounds credited to a motor vehicle, trailer, semi-trailer or the vehicle combination by the owner for registration
• Gross Combination Weight Rating (GCWR) – the value specified by the manufacturer as the loaded weight of a combination motor vehicle. The GVWR will be determined by adding the GVWR of the power unit and the GVWR of the towed unit
• Gross Vehicle Weight Rating (GVWR) – is the maximum operating weight/mass of a vehicle specified by the manufacturer (usually specified on the MCO and generally on the driver door of the vehicle)
• Tonnage - Half-ton, three-quarter-ton and one-ton are classifications for pickup trucks and SUVs that are used to generally classify them by their payload capacities, meaning the maximum weight a pickup or SUV can carry in its cargo and passenger areas
• Vehicle Combination (VC) – is a motor vehicle and the trailer, semi-trailer that is towed
• Unladen Weight – is the weight of the vehicle when it is not carrying any passengers, goods or any other type of items. This field will be required for IRP and Apportioned vehicles and OHV decals

The owner of the vehicle being registered commercially will determine the declared gross weight and additional commercial fees (listed below) are based on the declared gross weight.

• Commercial Registration Fee
• Weight fee
• Motor Carrier Fee, if applicable

Commercial Vehicles will receive a Commercial Vehicle plate.

Establishing the FLP

To establish a FLP for a commercial vehicle, including a commercial vehicle with a GVWR of 18,000+ pounds, view the Factory List Price topic for more information.

Company or Dealership: Completing the Buyer or Seller Section on Title

The information below applies to any in- or out-of-state titles or MCOs.

Selling Signatures

When a company or dealership is selling a vehicle in their name, the title will need to have the following:

• Printed dealer's name
• Dealer number or notarization, as applicable
• Signature of person signing for the dealership

Additional documentation is not required to prove the person signing on behalf of the company or dealership works for them. The person signing for the company or dealership do not have to indicate their title of the company/dealership after their signature.

On out-of-state titles, the required fields may differ, such as dealer's printed name or agent's printed name. You will need to verify that all the required fields (information) have been completed for that specific title.

Examples of Company or Dealership Signatures on Title Work

Arizona Title

The title needs to be completed based on the required fields on the title, as is (no additions). The Agent Name or Agent Signature fields do NOT require the agent to write their title within the company or dealership.

Out-of-State Title

The title needs to be completed based on the required fields on the title, as is (no additions). The Agent Name or Agent Signature fields do NOT require the agent to write their title within the company or dealership.

Acceptable Proof for Business Transactions

Individuals conducting business on behalf of a company, organization or other entity must present an acceptable form of identification. Additionally:

• Individuals conducting business on behalf of a company, organization or other entity must present proof that they are authorized to conduct business on behalf of the company, organization or other entity when:
  • Obtaining an over the counter title
  • Transferring the title out of the company, organization or entity’s name
• Acceptable proof may be, but is not limited to:
  • A business card with a name that matches the presented identification
  • A letter, on company letterhead, from the company, organization or other entity naming a specific individual as authorized to conduct business on their behalf
  • A power of attorney from the company, organization or other entity authorizing the individual to conduct business on their behalf
  • Other documentation at supervisor discretion
• Proof of authorization to conduct business on behalf of a company, organization or other entity is not required when the transaction does not involve a change of ownership, such as a registration renewal

Policy 8.3.5 Full Legal Name and Acceptable Documents for T&R Services or if dealing with an ELT title, policy 7.1.9 Electronic Lien and Title (ELT).

The Federal Heavy Vehicle Highway Use Tax (Form 2290) is required for all commercial vehicles with a declared gross weight of 55,000 lbs. or more.

The Division requires a copy of IRS Schedule 1, Form 2290 (validated by the IRS) or a copy of the Schedule 1 that was filed with a copy of the canceled check at the time of registration for all motor vehicle registrants who are subject to the tax. Either form must include the VIN.

The following types of vehicles are exempt from providing a Form 2290:

• Vehicles with a declared gross weight of less than 55,000 lbs.
• Vehicles being registered with a MCO
• Vehicles being registered as a Special Interstate Registration (SPI) 
• Vehicles receiving an Arizona 'Title Only'
• Vehicles (new or used) that were purchased no more than 60 days prior to the date of application for title and registration
  • The customer will need to provide a properly completed Bill of Sale or title indicating the date of sale

Commercial vehicles that are already registered with a declared gross weight of 55,000 lbs. or less and choose to increase their declared gross weight to 55,000 lbs. or more will not be required to submit the Form 2290. Only at the time of the vehicle’s renewal will the Form 2290 be required.

Any questions pertaining to the Form 2290 may be directed to the Internal Revenue Services at 1-800-829-1040.

For vehicle that will be registered commercially for the first time, registration can be issued for one, two or five years.

The commercial fees required to be collected based on the declared gross weight are:

Vehicles that declare a weight of 12,001 to 80,000 lbs. will be required to pay a Motor Carrier Fee (herein after referred to as MCF) and the fee is considered to be a heavyweight MCF.

A non-resident motor carrier person who operates a motor vehicle in this state may purchase the applicable motor carrier permit for each trip in this state instead of paying the annual motor carrier fee.

A person registering in this state or accorded proportional registration or a registration that is connected with this state for motor vehicle over 26,000 lbs. will obtain a Motor Carrier Tax License.

Reduced Heavyweight Motor Carrier Fees

An owner that has a vehicle that qualifies for a reduction of the MCF, based on the vehicles type of operation, will complete either of the below forms:

• Reduced Motor Carrier Fee Certificate, form #96-0141
• T&R Application (Single), form #96-0236 may be completed with the proper Service Option code entered on the application

When the owner wishes to complete a Reduced Motor Carrier Fee Certificate, form #96-0141 in the middle of a registration cycle, the reduced MCF will not go into effect until the next full registration cycle (registration renewal).

The MCF will be reduced to 70% of its full rate.

The following are eligible for the reduced MCF:

• One Way Haul
• Route Truck
• Agricultural Use/Products

One Way Haul

A vehicle is considered to be a ‘one-way haul’ when it is operated at least 45% of the time without a load or with any of the following:

• Equipment that makes a motor vehicle ready for the road
• Restraining equipment that makes the load safe
• Equipment normally carried with the motor vehicle and used for the loading or unloading of the motor vehicle
• Empty containers, empty returnable containers and empty boxes that are being returned to the point of shipment
• Goods or commodities that are being returned to the point of shipment as a result of spoilage, damage, misfills, consignee rejection or consignee return

A dump truck leaves full, comes back empty.

Route Truck

A vehicle is considered to be a ‘route truck’ when it begins and ends a qualifying trip at the same point without having added to its load:

• At the midway point in a qualifying trip, the load must be 45% of the full load capacity of the vehicle
• Full load capacity means the registered declared gross weight of the vehicle minus the weight of the vehicle without a load
• Items listed above are not considered for a full load capacity calculating purposes

A Pepsi delivery truck leaves the docking bay full. When the route is completed the truck returns back to the same docking bay.

Agricultural Use/Products

A vehicle is considered an ‘agricultural product vehicle’ when it is used for only transporting agricultural products.

A motor carrier who pays a reduced MCF for a motor vehicle shall not use that motor vehicle for transporting anything other than agricultural products.

Agricultural products’ means either:

• Crops, livestock, machinery or supplies used or produced in farming operations
• Products, crops or livestock in their unmanufactured or unprocessed states

A truck is used to transport lettuce from the field to the packing shed.

Light Motor Carrier Fees

Vehicles that declare a weight of 12,000 lbs. or less may be required to pay a light MCF when the vehicle is used to transport 'for hire' persons, freight, or property will be referred to has 'For Hire.'

The term 'freight' includes, but is not limited to, items such as small packages, letters, or documents.

The owner of the vehicle must complete a For Hire Certificate, form #96-0148. These vehicles are exempt from paying Vehicle Use Tax.

Only if operations change will the certificate need to be completed again.

Limited Mileage Motor Carrier Fee

A vehicle that will only be used for limited mileage during a registration year may qualify for a ‘Limited MCF’. The owner that has a vehicle that qualifies for a limited mileage MCF will be required to complete a Reduced Motor Carrier Fee Certificate, form #96-0141.

Vehicles eligible for the limited mileage MCF are vehicles that are traveling:

• Less than 2,000 miles per year (MCF PD or MCF Limited Miles to 1999)
• 2,000 to 4,000 miles per year (MCF Limited Miles: More than 1999 to 4000)

Vehicles Exempt from Motor Carrier Fee

• A school bus
• A motor vehicle used in the production of:
  • Motion pictures, including films to be shown in theaters and on television
  • Industrial, training, and educational films
  • Commercials for television
  • Video discs
  • Video tapes

When the customer is eligible for a reduced Motor Carrier fee, when the declared gross weight is 12,001 or more:

• A Reduced Motor Carrier Fee Certificate, form #96-0141 must be properly completed and submitted
• A MCF Reduced Rate - Agriculture status will be placed on the record, if applicable

The MCF is reduced by 50%.

When the Farm vehicle runs on an eligible alternative fuel, the vehicle will receive an Alternative Fuel sticker to place on the Farm Vehicle plate.

• A one-time $8.00 Alternative Fuel sticker fee will apply

Vehicles that are currently registered commercially are not eligible for the SAR, until the registration is expired, and then a SAR can be issued.

• Regular registration is issued for one year at a time
• Non-commercial fees (e.g., Vehicle License Tax, Air Quality Fee, Registration Fee, Air Quality Compliance Fee, etc.) are collected for one year at a time
• Pro-rated SAR commercial fees (e.g., Commercial Registration, Weight, and Motor Carrier fees) are collected for a time frame between 3 to 11 months
  • Initial request for SAR: Commercial fees will always be calculated and collected one month forward from the month of application for the SAR and for the time frame the SAR will be operational (3 to 11 months)
  • Renewal of SAR: Commercial fees will always be calculated and collected from the beginning of the month of application for the SAR and for the time frame the SAR will be operational (3 to 11 months)
• A SAR registration will always expire at the end of the month
• A SAR is not subject to late registration renewal penalty fees
• A SAR with a declared gross weight of 55,000 or more will be required to show an IRS Form 2290 when initially being registered as a SAR
  • If the SAR will be registered again in the same calendar year, the Form 2290 will not be required
  • If the SAR will be registered again in a new calendaryear, the Form 2290 will be required

The declared gross weight may be increased or decreased during the valid months of the SAR, additional Commercial Registration, Weight and Motor Carrier fees may be required. The SAR End field on the vehicle’s base record indicates when the SAR expires.

When a SAR overlaps any part of two calendar years, the full amount of VLT is charged for both years.

• One registration fee is collected
• The Commercial Registration, Weight, or Motor Carrier fees are prorated

Overlapping SAR of two calendar years: A customer has a vehicle registration that is valid from January 2019 to December 2019 and requests a SAR from November 2018 to February 2019. The registration will need to be renewed early to reflect January 2019 to December 2019 registration, and then the SAR can be processed from December 2019 (one month forward for initial request) to February 2020.