A.R.S. § 28-404

The director may enter into agreements with other states on behalf of this state relating to the partial or total exemption from payment of lieu taxes, gross weight fees or use fees, and the partial or total exemption from payment of registration fees of vehicles registered and licensed in a state adjoining this state if the vehicles are used in this state within twenty-five miles of the border and if the owner and vehicles are domiciled in the adjoining state but within twenty-five miles of the border of this state.