8.14.5

registration credit

Effective Date: November 21, 2024

Review Due: November 21, 2026

Summary of Changes

No changes needed per the two year review.

Purpose

To provide guidelines for determining, refunding, retaining, and transferring a registration credit.

Authority

Two Year Review A.R.S. §§ 28-364, 28-373, 28-2055, 28-2356 and 28-2269.

Policy

1. The owner of a vehicle for which registration and a license plate were issued shall retain the license plate when the owner sells or otherwise transfers the vehicle to another person or entity. A registration credit that consists of all unexpired portions of creditable taxes and fees in excess of a statutorily required $12 processing fee, may be applied to the customer’s account. Customer’s may access their account through AZMVDNow.gov, see Policy 4.1.4 Customer AZMVDNow.gov Access.

2. The available registration credit is based on the number of months remaining on the registration of the vehicle that was sold/transferred and shall be prorated for each full month remaining in the registration cycle using the assessed value of the vehicle for the year that the full month is in. Creditable taxes and fees are the following:

1. Commercial Registration Fee (CRF)
2. Highway Use Fee (USE)
3. Motor Carrier Fee (MCF)
4. Special Plate Fee (SPL)
5. Vehicle License Tax (VLT)
6. Weight Fee (WGT)

3. A registration credit balance will begin to decrease if the owner does not transfer their registration credit within 30 days of the sale or transfer of their vehicle to their customer account.

4. The amount of available registration credit is computed as follows when a trailer is registered on a permanent basis:

1. When registered for 24 months or less, the original creditable fees are divided by 24 (1/24 for each full month after the purchase date to the 24th month after the date of initial permanent registration of the trailer)
2. When registered for more than 24 months, the registration is considered to be permanent.

1. The seller is not eligible to receive a credit/refund.
2. The new owner does not pay a registration fee or VLT.

5. Registration credits are issued to the owner or owners of the license plate for the vehicle to which the license plate was assigned. The customer may request a disbursement of funds available in their customer account. Disbursement of funds can be in the form of a check sent by first class mail or electronically refunded to the customer’s bank account.

• When a customer requests a check, the Division shall send the disbursement of funds to the address provided by the owner claiming the registration credit or if no address is provided, to the latest address listed on MVD’s records for the owner claiming the registration credit.

6. When a disbursement of funds is issued due to a court ordered title transaction, the registration credit will be distributed as follows:

1. Divorce Decree: The person entitled to the vehicle, as identified in the court order, is entitled to the license plate and registration credit.
2. Judgment: Unless the judgment specifically states that the license plate and registration credit are to be transferred to the person or entity that is receiving the vehicle, the original owner is entitled to the license plate and registration credit.
3. Estate (Probate): The personal representative or the executor of the estate may assume the license plate and registration credit as long as a certified copy of the court order appointing the personal representative or the executor of the estate is submitted at the time of application.
4. Bankruptcy: The original owner is entitled to the license plate and registration credit.
5. Conservator/Guardianship/Fiduciary: The license plate and registration credit is not transferable to the conservator, guardian, or fiduciary. The original owner is entitled to the license plate and registration credit.

7. When a registration credit is issued due to one of the following uncommon title transactions, the license plate and registration credit will be distributed as follows:

1. Estate: (Non-Probate): The individual signing the Non-Probate affidavit may assume the license plate and registration credit.
2. Repossession: The license plate and registration credit is not transferable; the original owner is entitled to the license plate and registration credit.
3. Sheriff’s Sale: The original owner is entitled to the registration credit.
4. Transfer on Death Beneficiary: The beneficiary listed on the Beneficiary Designation, form #96-0561, may assume the license plate and registration credit.