PHOENIX - It won't stop anyone from growing old.
But the Senate Finance Committee voted Thursday to make it a little financially sweeter for about 25,000 seniors: They would get a total exemption from paying any taxes when registering their vehicles.
And it wouldn't matter whether it was a shiny new Caddy or a beat-up Yugo -- as long as their own income does not exceed certain limits.
Vehicles are taxed in Arizona on a formula based on their value.
So a new car that costs $25,000 would be taxed $420. By the second year, when the car was worth less, that would drop to $363.06. Legislative staff researchers say the tax on the average vehicle in Arizona is about $190 a year.
Sen. Jay Tibshraeny, R-Chandler, said seniors on fixed income need some relief. His legislation provides a total exemption from the levy for anyone whose income is less than four times the benefit rate set by the federal government for supplemental security income, or five times for a couple. Tibshraeny said that figure is about $28,000 for single people and slightly more than $52,000 for married couples.
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Tibshraeny said if people meet the income requirements, the fact that they can afford an expensive car is irrelevant. He noted, though, SB 1149 would allow only one tax-free vehicle per person or couple; they could not have two fancy cars both exempt from taxes.
He conceded the measure is unclear whether the exemption would apply to motor homes, promising to make necessary changes when the bill reaches the full Senate.
The change is expected to cost the state about $4.7 million a year.
Tibshraeny said if this bill becomes law he will be back next year to allow anyone below the income limits to qualify, regardless of age.
