The City of Flagstaff will rebate a portion of the local tax paid for purchases of fuel-efficient automotive vehicles. The current local transaction privilege (sales) tax rate on the purchase of vehicles is 2.281%. (If the vehicle is purchased for out-of-state use, the local use tax rate of 2.281% is paid in lieu of sales tax). Residents of Flagstaff may qualify for the local version of these incentives by providing their driver’s license that illustrates a City of Flagstaff address or provide a utility bill with a City of Flagstaff address.