By Howard Fischer | Capitol Media Services
Are you good at bargaining for the price of a new car?
If a state lawmaker gets her way, people who are better at playing the negotiating game will get not just a better out-the-door price from the dealer but also a permanent tax break from the state.
Sen. Michelle Ugenti-Rita, R-Scottsdale, seeks to have the annual vehicle license tax based on what someone actually pays for the vehicle after all the haggling is over and done.
That is a departure from the procedures used by the Motor Vehicle Division. It bases the VLT on the manufacturer’s suggested retail price.
Put simply, if Toyota decides to set the price for its 4-Runner at $38,520, your vehicle license fee for the first year is $647.14. That’s computed on a formula based on 60% of the MSRP, with a tax rate of $2.80 for every $100 of value.
But let’s say you get the price knocked down to $30,000. Under her SB 1019, your first-year fee would be $504 using that same calculation.