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Arizona Automotive Repair Licensing Law

Arizona Code · 2 sections

The following is the full text of Arizona’s automotive repair licensing law statutes as published in the Arizona Code. For the official version, see the Arizona Legislature.


A.R.S. § 20-00271

20-271 - Lienholders; proof; accidents; notice; applicability

20-271. Lienholders; proof; accidents; notice; applicability

A. An insured or claimant shall provide information as part of the proof of loss concerning the existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss. A claim shall not be an acceptable proof of loss until satisfactory evidence of the existence of any lien or encumbrance has been provided to the insurer. This section shall not apply if the amount of damages or loss does not exceed two thousand five hundred dollars.

B. An insurer shall be entitled to rely upon information provided by the insured or claimant pursuant to subsection A concerning the existence of any lien or encumbrance against the vehicle. An insurer that acts in good faith upon the information provided by the claimant or insured shall not be liable for any damages arising from the insured's or claimant's failure to provide accurate information to the insurer concerning existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss.

C. An insured or claimant shall be liable for any damages arising from the failure of the insured or claimant to provide accurate information pursuant to subsection A regarding the existence of any lien or encumbrance against the vehicle involved in the accident or incident giving rise to the damage or loss.

D. This section shall not apply if an insurer does either of the following with respect to the repair of damages or loss to a vehicle:

  1. Issues a release of claims in the names or makes the proceeds payable to both the insured or claimant and all lienholders or vehicle lessors.

  2. Makes the proceeds payable to the motor vehicle repair facility after verification by the insurer that the damage or loss has been repaired.


A.R.S. § 5-00839

5-839 - Car rental surcharge

5-839. Car rental surcharge

A. The qualified electors residing in the authority, by majority vote at an election held in the authority, may levy and, if levied, the department of revenue shall collect a car rental surcharge beginning on the first day of the first month beginning ninety days after the election to levy the surcharge. The surcharge shall be in effect for three hundred sixty months.

B. The rate of the surcharge is:

  1. Three and one-fourth per cent of the gross proceeds or gross income from the business or two dollars fifty cents on each lease or rental, whichever is more.

  2. In the case of a person who leases or rents the motor vehicle as a temporary replacement motor vehicle, two dollars fifty cents on each lease or rental. For the purposes of this paragraph, "temporary replacement motor vehicle" means a vehicle loaned by a motor vehicle repair facility or dealer or rented by a person temporarily to use while the vehicle that it is replacing is not in use because of breakdown, repair, service, damage or loss.

C. The surcharge applies to the business of leasing or renting for less than one year motor vehicles for hire without a driver, that are designed to operate on the streets and highways of this state and that are primarily intended to carry not more than fourteen passengers, regardless of whether the vehicle is registered or licensed in this state.

D.  The surcharge does not apply to the lease or rental of a motor vehicle:

  1. To an automobile dealership, a repair facility, an insurance company or any other person that provides that vehicle at no charge to a person whose own motor vehicle is being repaired, adjusted or serviced.

  2. Used in an employee vanpool arrangement for a group of at least seven but not more than fourteen passengers including a driver who meets all of the following conditions:

(a) The driver operates the motor vehicle for the purpose of commuting between the driver's residence and place of employment.

(b) The driver operates the motor vehicle under a prearranged schedule for transporting the passengers between their residences and place of employment.

(c) The driver's operation of the motor vehicle is voluntary and not required as a work responsibility or condition of employment.

(d) The driver receives no compensation other than free transportation between the driver's residence and place of employment, plus limited personal use of the motor vehicle consisting of not more than twenty per cent of the mileage use of the motor vehicle for either:

(i) Purposes other than transporting passengers between their residences and place of employment.

(ii) Travel between the passengers' residences and place of employment in which passengers transported constitute less than one-half of the adult seating capacity of the motor vehicle, not including the driver.

E. The surcharge is not taxable under section 42-5071.

F. Unless the context otherwise requires, section 42-6102 governs the administration of a surcharge imposed under this section, which shall be reported on a form prescribed by the department of revenue. The department of revenue shall require a report of the number of lease or rental transactions and shall transmit that number to the state treasurer.

G. Each month the state treasurer shall distribute revenues collected pursuant to this section as follows:

  1. Transmit an amount equal to two dollars fifty cents on each lease or rental transaction to the county stadium district established in the county in which the authority is located pursuant to title 48, chapter 26 for deposit in the county stadium district fund. The board of directors of the county stadium district may pledge all or part of these monies to secure district bonds or financial obligations under title 48, chapter 26.

  2. Pay the remainder of the monies collected during the month to the authority for deposit in the tourism revenue clearing account established by section 5-835.


The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)