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While not legally mandatory for the Arizona MVD to process a title transfer, a Bill of Sale is highly recommended. It serves as your official receipt and protects both you and the seller from future disputes about the sale price, date, or vehicle condition. It should include the VIN, vehicle details, sale price, date, and signatures of both parties.
Generally, no. Private party vehicle sales in Arizona are typically exempt from the Transaction Privilege Tax (TPT), which is the state's equivalent of sales tax. This rule applies to casual sales between private individuals.
Although you are exempt from sales tax, you will be responsible for paying registration fees and the annual Vehicle License Tax (VLT) when you title the car in your name at the MVD. The VLT is based on the vehicle's assessed value.
To legally transfer ownership, the seller must sign the back of the title. In Arizona, this signature must be notarized to be valid. You can find notary services at most banks, shipping stores, and authorized third-party MVD providers in Payson. Once you have the signed and notarized title, take it to the local MVD office or an authorized provider to complete the transfer and register the vehicle in your name.
In Arizona, the license plate stays with the seller. Plates are registered to an individual, not the vehicle. The seller is required by law to remove their plate before you take possession of the car. Do not drive the car with the seller's plates on it.
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