ADOT-Motor Vehicle Division's Revenue Functions

This report discusses the need for the Division to improve its collection and handling of fees and taxes collected from the general public and the motor carrier industry. Hundreds of millions of dollars handled by MVD offices issuing drivers' licenses and vehicle registrations are not adequately safeguarded, creating the potential for loss or theft. In addition, motor carriers' ability to bypass the ports of entry is estimated to result in a potential revenue loss of from $24 million to $45 million annually. Additional revenue is lost by MVD's failure to ensure motor carriers file tax returns and post bonds as required by law. Finally, MVD lacks basic information needed to manage the collection of millions of dollars in delinquent taxes.