In Arizona, commuting in a government leased vehicle is subject to taxation. This includes both state income taxes and vehicle privilege taxes. For state income taxes, the full value of the use of the vehicle is subject to taxation. This includes the cost of the vehicle, as well as the cost of fuel, maintenance, and insurance. Vehicle privilege taxes are also applicable to government leased vehicles in Arizona. This tax is imposed on the privilege of using a motor vehicle on public highways. The applicable tax rate is based on the value of the vehicle, and applies to both private and government leased vehicles. There are two types of taxes applicable to government leased vehicles in Arizona. The first is the state income tax, and the second is the vehicle privilege tax. The state income tax is based on the full value of the use of the vehicle, and the vehicle privilege tax is based on the value of the vehicle. Both taxes are applicable to the use of a government leased vehicle for commuting in Arizona.