SALES OF MOTOR VEHICLES TO NONRESIDENTS 
NONRESIDENT STATE TAX RATE SCHEDULES and 
ARIZONA COUNTY TAX RATE SCHEDULES                                           EFFECTIVE: JANUARY 1, 2018 
This schedule is for use in manually completing  WORKSHEET A/B, which computes the Arizona State Transaction 
Privilege Tax amount (adjusted to equal the    state  tax amount of the nonresident’s state), County Excise Tax, and 
Form TPT-2 Deduction Amounts, for sales of motor vehicles by Arizona motor vehicle dealers to nonresidents from 
states that qualify for full or partial exemption from Arizona transaction privilege tax. WORKSHEET C     automatically 
performs all tax and deduction calculations. Arizona  Transaction Privilege Tax Procedure  TPP 08-1 explains various 
scenarios and issues associated with sales of motor vehicles to nonresidents.    TPP 08-1,WORKSHEET A/B            and 
WORKSHEET C areall    available online under Transaction Privilege Tax (TPT).  

Enter the nonresident’s state tax rate on LINE 2 of the WORKSHEET: 

STATE  TAX %            ENTER:           STATE  TAX %                ENTER:      STATE  TAX %                    ENTER: 
                                                                                  *
AL        2.0%          0.020                MT       0.0%           0.000                SC  5.00%              0.050* 

AK        0.0%          0.000                NE       5.50%          0.055                SD  4.00%              0.040 

CO        2.9%          0.029                NH       0.00%          0.000                UT  4.70%              0.047 

   HI     4.0%          0.040                NM       3.00%          0.030                WI  5.00%              0.050 

   IA     5.0%          0.050                NY       4.00%          0.040                WY  4.00%              0.040 

LA        5.0%          0.050                NC       3.00%          0.030                                        

ME        5.5%          0.055                ND       5.00%          0.050       *MAXIMUM  S.C.   TAX             IS $500       

MO        4.225%        0.04225              OR       0.50%          0.005       
                                                                                  
Enter the applicable Arizona county tax rate on LINE 4 of the WORKSHEET: 

COUNTY  TAX %           ENTER:           COUNTY  TAX %               ENTER:       COUNTY            TAX %        ENTER: 

   APA       0.5%       0.005                GRN      0.5%           0.005        PMA               0.5%         0.005 

   COH       0.5%       0.005                LAP      2.00%          0.020                PNL       1.10%        0.011 

   COC       1.3%       0.013                MAR      0.7%           0.007                STC       1.00%        0.010 

   GLA       1.00%      0.010                MOH      0.25%          0.0025               YAV       0.75%        0.0075 

   GRA       1.0%       0.010                NAV      0.5%           0.005        YMA               1.112%      0.01112 

Nonresidents from AR, DE, D.C., GA, MD, MS, OK, VA and WV:  These states do not provide 
“reciprocity” for taxes paid in Arizona.  (In other words, these states do not allow a credit against their taxes for tax paid 
in Arizona)  A.R.S. § 42-5061(A)(28)(a) provides an exemption from Arizona transaction privilege tax and county 
excise tax for motor vehicle sales to nonresidents who are from these states.  See Arizona Transaction Privilege Tax 
Procedure TPP 08-1 for information and documentation requirements.   

Nonresidents from CA, CT, FL, ID, IL, IN, KS, KY, MA, MI, MN, NV, NJ, OH, PA, RI, TN, TX, VT, 
and WA:  Because these states have higher tax rates than Arizona’s          5.6% transaction privilege tax rate, motor 
vehicle sales to nonresidents from these states are subject to Arizona taxes if the nonresident purchaser takes 
possession of the vehicle in Arizona.  These states will allow a credit against their state taxes for the state transaction 
privilege tax paid in Arizona, when the nonresident registers the vehicle in his or her home state.