Vehicle Tax in Scottsdale AZ

Sdarrow

New Member
Joined
Apr 25, 2023
Messages
7
Cars
Lucid Air Grand Touring
I just received the documentation to sign in preparation for my delivery at the Scottsdale AZ delivery center. I also live in Scottsdale. Everything prior to my purchase indicated that my sales tax in Scottsdale for a vehicle purchase would be 7.15% (I also saw up to 8.05%). However the final sales tax on the paperwork was 8.8%. This difference is over $2000, so I wanted to ask if anyone knew what the additional tax is for, or if I was looking at the wrong info to begin with. Thanks!
 
I just received the documentation to sign in preparation for my delivery at the Scottsdale AZ delivery center. I also live in Scottsdale. Everything prior to my purchase indicated that my sales tax in Scottsdale for a vehicle purchase would be 7.15% (I also saw up to 8.05%). However the final sales tax on the paperwork was 8.8%. This difference is over $2000, so I wanted to ask if anyone knew what the additional tax is for, or if I was looking at the wrong info to begin with. Thanks!
I think 8.05% is the correct rate.
 
It can get tricky in Arizona. For example, I live in the City of Phoenix (I pay Phoenix property tax, get Phoenix trash removal, etc.) but my mailing address is Scottsdale. There are also so called "county islands" which are not part of any city. On top of that, the use tax rate can vary from $0.00 to the same rate as the sales tax. the "sales tax" in Arizona is actually a seller tax so where the seller is located controls unless the seller has no nexus in which case use tax applies. But there is no county use tax in Maricopa County (greater Phoenix and Scottsdale).

It looks like you were charged the town of Paradise Valley transaction privilege tax rate. I can't see why. I believe both the design studio and service center are in the city of Scottsdale. Do you live in the town of Paradise Valley and was your car delivered to your house (instead of picking it up at the Service Center)?
 
It can get tricky in Arizona. For example, I live in the City of Phoenix (I pay Phoenix property tax, get Phoenix trash removal, etc.) but my mailing address is Scottsdale. There are also so called "county islands" which are not part of any city. On top of that, the use tax rate can vary from $0.00 to the same rate as the sales tax. the "sales tax" in Arizona is actually a seller tax so where the seller is located controls unless the seller has no nexus in which case use tax applies. But there is no county use tax in Maricopa County (greater Phoenix and Scottsdale).

It looks like you were charged the town of Paradise Valley transaction privilege tax rate. I can't see why. I believe both the design studio and service center are in the city of Scottsdale. Do you live in the town of Paradise Valley and was your car delivered to your house (instead of picking it up at the Service Center)?
This is starting to make more sense. My address is Paradise Valley but I was under the same impression that since I’m picking it up at the Scottsdale service center I would be paying tax based on the seller’s address. I will ask my delivery advisor and see what he says. I’ll send another post as an FYI. Thanks for input, super helpful!
 
This is starting to make more sense. My address is Paradise Valley but I was under the same impression that since I’m picking it up at the Scottsdale service center I would be paying tax based on the seller’s address. I will ask my delivery advisor and see what he says. I’ll send another post as an FYI. Thanks for input, super helpful!
For reference, I also live in Paradise Valley and picked up at Scottsdale and was charged 8.05% sales tax.
 
Back
Top