HOUSE BILL No. 4537

 

 

May 1, 2019, Introduced by Reps. Lower and Marino and referred to the Committee on Transportation.

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 217, 801, and 801j (MCL 257.217, 257.801,

 

and 257.801j), section 217 as amended by 2014 PA 290, section 801

 

as amended by 2018 PA 656, and section 801j as amended by 2014 PA

 

171.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 217. (1) An owner of a vehicle that is subject to

 

 2  registration under this act shall apply to the secretary of

 

 3  state, upon an appropriate form furnished by the secretary of

 

 4  state, for the registration of the vehicle and issuance of a

 

 5  certificate of title for the vehicle. A vehicle brought into this

 

 6  state from another state or jurisdiction that has a rebuilt,

 

 7  salvage, scrap, flood, or comparable certificate of title issued

 


 1  by that other state or jurisdiction shall be issued a rebuilt,

 

 2  salvage, scrap, or flood certificate of title by the secretary of

 

 3  state. The application shall be accompanied by the required fee.

 

 4  An application for a certificate of title shall bear the

 

 5  signature or verification and certification of the owner. The

 

 6  application shall contain all of the following:

 

 7        (a) The owner's name, the owner's bona fide residence, and

 

 8  either of the following:

 

 9        (i) If the owner is an individual, the owner's mailing

 

10  address.

 

11        (ii) If the owner is a firm, association, partnership,

 

12  limited liability company, or corporation, the owner's business

 

13  address.

 

14        (b) A description of the vehicle including the make or name,

 

15  style of body, and model year; the number of miles, not including

 

16  the tenths of a mile, registered on the vehicle's odometer at the

 

17  time of transfer; whether the vehicle is a flood vehicle or

 

18  another state previously issued the vehicle a flood certificate

 

19  of title; whether the vehicle is to be or has been used as a taxi

 

20  or police vehicle, or by a political subdivision of this state,

 

21  unless the vehicle is owned by a dealer and loaned or leased to a

 

22  political subdivision of this state for use as a driver education

 

23  vehicle; whether the vehicle has previously been issued a salvage

 

24  or rebuilt certificate of title from this state or a comparable

 

25  certificate of title from any other state or jurisdiction;

 

26  vehicle identification number; and the vehicle's weight fully

 

27  equipped, if a passenger vehicle registered in accordance with

 


 1  section 801(1)(a), and, if a trailer coach or pickup camper, in

 

 2  addition to the weight, the manufacturer's serial number, or in

 

 3  the absence of the serial number, a number assigned by the

 

 4  secretary of state. A number assigned by the secretary of state

 

 5  shall be permanently placed on the trailer coach or pickup camper

 

 6  in the manner and place designated by the secretary of state.

 

 7        (c) A statement of the applicant's title and the names and

 

 8  addresses of the holders of security interests in the vehicle and

 

 9  in an accessory to the vehicle, in the order of their priority.

 

10        (d) Further information that the secretary of state

 

11  reasonably requires to enable the secretary of state to determine

 

12  whether the vehicle is lawfully entitled to registration and the

 

13  owner entitled to a certificate of title. If the secretary of

 

14  state is not satisfied as to the ownership of a vehicle having a

 

15  value over $2,500.00 or that is less than 10 years old, before

 

16  registering the vehicle and issuing a certificate of title, the

 

17  secretary of state may require the applicant to file a properly

 

18  executed surety bond in a form prescribed by the secretary of

 

19  state and executed by the applicant and a company authorized to

 

20  conduct a surety business in this state. The bond shall be in an

 

21  amount equal to twice the value of the vehicle as determined by

 

22  the secretary of state and shall be conditioned to indemnify or

 

23  reimburse the secretary of state, any prior owner, and any

 

24  subsequent purchaser or lessee of the vehicle and their

 

25  successors in interest against any expense, loss, or damage,

 

26  including reasonable attorney's fees, by reason of the issuance

 

27  of a certificate of title for the vehicle or on account of any

 


 1  defect in the right, title, or interest of the applicant in the

 

 2  vehicle. An interested person has a right of action to recover on

 

 3  the bond for a breach of the conditions of the bond, but the

 

 4  aggregate liability of the surety to all persons shall not exceed

 

 5  the amount of the bond. If the secretary of state is not

 

 6  satisfied as to the ownership of a vehicle that is valued at

 

 7  $2,500.00 or less and that is 10 years old or older, the

 

 8  secretary of state shall require the applicant to certify that

 

 9  the applicant is the owner of the vehicle and entitled to

 

10  register and title the vehicle.

 

11        (e) Except as provided in subdivision (f), an application

 

12  for a commercial vehicle shall also have attached a scale weight

 

13  receipt of the motor vehicle fully equipped as of the time the

 

14  application is made. A scale weight receipt is not necessary if

 

15  there is presented with the application a registration receipt of

 

16  the previous year that shows on its face the empty weight of the

 

17  motor vehicle as registered with the secretary of state that is

 

18  accompanied by a statement of the applicant that there has not

 

19  been structural change in the motor vehicle that has increased

 

20  the empty weight and that the previous registered weight is the

 

21  true weight.

 

22        (f) An application for registration of a vehicle on the

 

23  basis of elected gross weight shall include a declaration by the

 

24  applicant specifying the elected gross weight for which

 

25  application is being made.

 

26        (g) If the application is for a certificate of title of a

 

27  motor vehicle registered in accordance with section 801(1)(p),

 


 1  the An application for registration of a vehicle subject to an

 

 2  additional tax charged by a regional transit authority under

 

 3  section 801j shall include the manufacturer's suggested base list

 

 4  price for the model year of the vehicle. The base list price

 

 5  shall be the manufacturer's suggested retail price as shown on

 

 6  the label required to be affixed to the vehicle under 15 USC

 

 7  1232. If the manufacturer's suggested retail price is

 

 8  unavailable, the application shall list the purchase price of the

 

 9  vehicle as defined in section 801.801j.

 

10        (2) An applicant for registration of a leased pickup truck

 

11  or passenger vehicle that is subject to registration under this

 

12  act, except a vehicle that is subject to a registration fee under

 

13  section 801g, shall disclose in writing to the secretary of state

 

14  the lessee's name, the lessee's bona fide residence, and either

 

15  of the following:

 

16        (a) If the lessee is an individual, the lessee's Michigan

 

17  driver license number or Michigan personal identification number

 

18  or, if the lessee does not have a Michigan driver license or

 

19  Michigan personal identification number, the lessee's mailing

 

20  address.

 

21        (b) If the lessee is a firm, association, partnership,

 

22  limited liability company, or corporation, the lessee's business

 

23  address.

 

24        (3) The secretary of state shall maintain the information

 

25  described in subsection (2) on the secretary of state's computer

 

26  records.

 

27        (4) Except as provided in subsection (5), a dealer selling,

 


 1  leasing, or exchanging vehicles required to be titled, within 15

 

 2  days after delivering a vehicle to the purchaser or lessee, and a

 

 3  person engaged in the sale of vessels required to be numbered by

 

 4  part 801 of the natural resources and environmental protection

 

 5  act, 1994 PA 451, MCL 324.80101 to 324.80199, within 15 days

 

 6  after delivering a boat trailer weighing less than 2,500 pounds

 

 7  to the purchaser or lessee, shall apply to the secretary of state

 

 8  for a new title, if required, and transfer or secure registration

 

 9  plates and secure a certificate of registration for the vehicle

 

10  or boat trailer, in the name of the purchaser or lessee. The

 

11  dealer's license may be suspended or revoked in accordance with

 

12  section 249 for failure to apply for a title when required or for

 

13  failure to transfer or secure registration plates and certificate

 

14  of registration within the 15 days required by this section. If

 

15  the dealer or person fails to apply for a title when required,

 

16  and to transfer or secure registration plates and secure a

 

17  certificate of registration and pay the required fees within 15

 

18  days of delivery of the vehicle or boat trailer, a title and

 

19  registration for the vehicle or boat trailer may subsequently be

 

20  acquired only upon the payment of a late transfer fee of $15.00

 

21  for an individual or a dealer other than a dealer subject to

 

22  section 235b in addition to the fees specified in section 806.

 

23  For a used or secondhand vehicle dealer subject to section 235b,

 

24  the late transfer fee is $100.00 in addition to the fees

 

25  specified in section 806. The purchaser or lessee of the vehicle

 

26  or the purchaser of the boat trailer shall sign the application,

 

27  including, if applicable, the declaration specifying the maximum

 


 1  elected gross weight as required by subsection (1)(f), and other

 

 2  necessary papers to enable the dealer or person to secure the

 

 3  title, registration plates, and transfers from the secretary of

 

 4  state. If the secretary of state mails or delivers a purchaser's

 

 5  certificate of title to a dealer, the dealer shall mail or

 

 6  deliver the certificate of title to the purchaser not more than 5

 

 7  days after receiving the certificate of title from the secretary

 

 8  of state. However, as provided under section 238, the secretary

 

 9  of state is not required to issue a title to the owner of a

 

10  vehicle or lienholder if the title is subject to a security

 

11  interest.

 

12        (5) A dealer selling or exchanging an off lease or buy back

 

13  vehicle shall apply to the secretary of state for a new title for

 

14  the vehicle within 15 days after it receives the certificate of

 

15  title from the lessor or manufacturer under section 235 or

 

16  section 235b and transfer or secure registration plates and

 

17  secure a certificate of registration for the vehicle in the name

 

18  of the purchaser. The dealer's license may be suspended or

 

19  revoked in accordance with section 249 for failure to apply for a

 

20  title when required or for failure to transfer or secure

 

21  registration plates and certificate of registration within the

 

22  15-day period. If the dealer or person fails to apply for a title

 

23  when required, and to transfer or secure registration plates and

 

24  secure a certificate of registration and pay the required fees

 

25  within the 15-day time period, a title and registration for the

 

26  vehicle may subsequently be acquired only upon the payment of a

 

27  late transfer fee of $15.00 for an individual or dealer other

 


 1  than a used or secondhand vehicle dealer subject to section 235b

 

 2  in addition to the fees specified in section 806. The late

 

 3  transfer fee for a used or secondhand vehicle dealer subject to

 

 4  section 235b is $100.00 in addition to the fees specified in

 

 5  section 806. The purchaser of the vehicle shall sign the

 

 6  application, including, if applicable, the declaration specifying

 

 7  the maximum elected gross weight as required by subsection

 

 8  (1)(f), and other necessary papers to enable the dealer or person

 

 9  to secure the title, registration plates, and transfers from the

 

10  secretary of state. If the secretary of state mails or delivers a

 

11  purchaser's certificate of title to a dealer, the dealer shall

 

12  mail or deliver the certificate of title to the purchaser not

 

13  more than 5 days after receiving the certificate of title from

 

14  the secretary of state. However, as provided under section 238,

 

15  the secretary of state is not required to issue a title to the

 

16  owner of a vehicle if the title is subject to a security

 

17  interest.

 

18        (6) If a vehicle is delivered to a purchaser or lessee who

 

19  has valid Michigan registration plates that are to be transferred

 

20  to the vehicle, and an application for title, if required, and

 

21  registration for the vehicle is not made before delivery of the

 

22  vehicle to the purchaser or lessee, the registration plates shall

 

23  be affixed to the vehicle immediately, and the dealer shall

 

24  provide the purchaser or lessee with an instrument in writing, on

 

25  a form prescribed by the secretary of state, which shall serve as

 

26  a temporary registration for the vehicle for a period of 15 days

 

27  from the date the vehicle is delivered.

 


 1        (7) If the seller does not prepare the credit information,

 

 2  contract note, and mortgage, and the holder, finance company,

 

 3  credit union, or banking institution requires the installment

 

 4  seller to record the lien on the title, the holder, finance

 

 5  company, credit union, or banking institution shall pay the

 

 6  seller a service fee of not more than $10.00. The service fee

 

 7  shall be paid from the finance charges and shall not be charged

 

 8  to the buyer in addition to the finance charges. The holder,

 

 9  finance company, credit union, or banking institution shall issue

 

10  its check or bank draft for the principal amount financed,

 

11  payable jointly to the buyer and seller, and there shall be

 

12  imprinted on the back side of the check or bank draft the

 

13  following:

 

14        "Under Michigan law, the seller must record a first lien in

 

15  favor of (name of lender) _______________ on the vehicle with

 

16  vehicle identification number _______________ and title the

 

17  vehicle only in the name(s) shown on the reverse side."

 

18        (8) On the front of the check or draft described under

 

19  subsection (7), the holder, finance company, credit union, or

 

20  banking institution shall note the name or names of the

 

21  prospective owners. Failure of the holder, finance company,

 

22  credit union, or banking institution to comply with these

 

23  requirements frees the seller from any obligation to record the

 

24  lien or from any liability that may arise as a result of the

 

25  failure to record the lien. A service fee shall not be charged to

 

26  the buyer.

 

27        (9) In the absence of actual malice proved independently and

 


 1  not inferred from lack of probable cause, a person who in any

 

 2  manner causes a prosecution for larceny of a motor vehicle; for

 

 3  embezzlement of a motor vehicle; for any crime an element of

 

 4  which is the taking of a motor vehicle without authority; or for

 

 5  buying, receiving, possessing, leasing, or aiding in the

 

 6  concealment of a stolen, embezzled, or converted motor vehicle

 

 7  knowing that the motor vehicle has been stolen, embezzled, or

 

 8  converted, is not liable for damages in a civil action for

 

 9  causing the prosecution. This subsection does not relieve a

 

10  person from proving any other element necessary to sustain his or

 

11  her cause of action.

 

12        (10) Receipt by the secretary of state of a properly

 

13  tendered application for a certificate of title on which a

 

14  security interest in a vehicle is to be indicated is a condition

 

15  of perfection of a security interest in the vehicle and is

 

16  equivalent to filing a financing statement under the uniform

 

17  commercial code, 1962 PA 174, MCL 440.1101 to 440.9994, with

 

18  respect to the vehicle. When a security interest in a vehicle is

 

19  perfected, it has priority over the rights of a lien creditor as

 

20  lien creditor is defined in section 9102 of the uniform

 

21  commercial code, 1962 PA 174, MCL 440.9102.

 

22        Sec. 801. (1) The secretary of state shall collect the

 

23  following taxes at the time of registering a vehicle, which shall

 

24  exempt the vehicle from all other state and local taxation,

 

25  except the fees and taxes provided by law to be paid by certain

 

26  carriers operating motor vehicles and trailers under the motor

 

27  carrier act, 1933 PA 254, MCL 475.1 to 479.42; the taxes imposed

 


 1  by the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to

 

 2  207.234; and except as otherwise provided by this act:

 

 3        (a) For a motor vehicle, including a motor home, except as

 

 4  otherwise provided, and a pickup truck or van that weighs not

 

 5  more than 8,000 pounds, except as otherwise provided, according

 

 6  to the following schedule of empty weights:

 

 

7

     Empty weights                                          Tax

8

     0 to 3,000 pounds..................................$   29.00

9

     3,001 to 3,500 pounds..............................    32.00

10

     3,501 to 4,000 pounds..............................    37.00

11

     4,001 to 4,500 pounds..............................    43.00

12

     4,501 to 5,000 pounds..............................    47.00

13

     5,001 to 5,500 pounds..............................    52.00

14

     5,501 to 6,000 pounds..............................    57.00

15

     6,001 to 6,500 pounds..............................    62.00

16

     6,501 to 7,000 pounds..............................    67.00

17

     7,001 to 7,500 pounds..............................    71.00

18

     7,501 to 8,000 pounds..............................    77.00

19

     8,001 to 8,500 pounds..............................    81.00

20

     8,501 to 9,000 pounds..............................    86.00

21

     9,001 to 9,500 pounds..............................    91.00

22

     9,501 to 10,000 pounds.............................    95.00

23

     over 10,000 pounds.....................$ 0.90 per 100 pounds

24

                                                  of empty weight

 

 

25        On October 1, 1983, and October 1, 1984, the tax assessed

 

26  under this subdivision shall be annually revised for the

 

27  registrations expiring on the appropriate October 1 or after that

 


 1  date by multiplying the tax assessed in the preceding fiscal year

 

 2  times the personal income of Michigan for the preceding calendar

 

 3  year divided by the personal income of Michigan for the calendar

 

 4  year that preceded that calendar year. In performing the

 

 5  calculations under this subdivision, the secretary of state shall

 

 6  use the spring preliminary report of the United States Department

 

 7  of Commerce or its successor agency. A passenger motor vehicle

 

 8  that has been modified with a permanently installed wheelchair

 

 9  lift mechanism or with permanently installed hand controls and

 

10  that is owned by an individual who uses a wheelchair or by an

 

11  individual who transports a member of his or her household who

 

12  uses a wheelchair and for which registration plates are issued

 

13  under section 803d shall be assessed at the rate of 50% of the

 

14  tax provided for in this subdivision. As used in this

 

15  subdivision, "permanently installed hand controls" means a

 

16  permanently installed device designed to replace the brake and

 

17  gas pedals of a motor vehicle with hand controls.

 

18        (b) For a trailer coach attached to a motor vehicle, the tax

 

19  shall be assessed as provided in subdivision (l). A trailer coach

 

20  not under 1959 PA 243, MCL 125.1035 to 125.1043, and while

 

21  located on land otherwise assessable as real property under the

 

22  general property tax act, 1893 PA 206, MCL 211.1 to 211.155, if

 

23  the trailer coach is used as a place of habitation, and whether

 

24  or not permanently affixed to the soil, is not exempt from real

 

25  property taxes.

 

26        (c) For a road tractor, modified agricultural vehicle,

 

27  truck, or truck tractor owned by a farmer and used exclusively in

 


 1  connection with a farming operation, including a farmer hauling

 

 2  livestock or farm equipment for other farmers for remuneration in

 

 3  kind or in labor, but not for money, or used for the

 

 4  transportation of the farmer and the farmer's family, and not

 

 5  used for hire, 74 cents per 100 pounds of empty weight of the

 

 6  road tractor, truck, or truck tractor. If the road tractor,

 

 7  modified agricultural vehicle, truck, or truck tractor owned by a

 

 8  farmer is also used for a nonfarming operation, the farmer is

 

 9  subject to the highest registration tax applicable to the nonfarm

 

10  use of the vehicle but is not subject to more than 1 tax rate

 

11  under this act.

 

12        (d) For a road tractor, truck, or truck tractor owned by a

 

13  wood harvester and used exclusively in connection with the wood

 

14  harvesting operations or a truck used exclusively to haul milk

 

15  from the farm to the first point of delivery, 74 cents per 100

 

16  pounds of empty weight of the road tractor, truck, or truck

 

17  tractor. A registration secured by payment of the tax prescribed

 

18  in this subdivision continues in full force and effect until the

 

19  regular expiration date of the registration. As used in this

 

20  subdivision:

 

21        (i) "Wood harvester" includes the person or persons hauling

 

22  and transporting raw materials in the form produced at the

 

23  harvest site or hauling and transporting wood harvesting

 

24  equipment. Wood harvester does not include a person or persons

 

25  whose primary activity is tree-trimming or landscaping.

 

26        (ii) "Wood harvesting equipment" includes all of the

 

27  following:

 


 1        (A) A vehicle that directly harvests logs or timber,

 

 2  including, but not limited to, a processor or a feller buncher.

 

 3        (B) A vehicle that directly processes harvested logs or

 

 4  timber, including, but not limited to, a slasher, delimber,

 

 5  processor, chipper, or saw table.

 

 6        (C) A vehicle that directly processes harvested logs or

 

 7  timber, including, but not limited to, a forwarder, grapple

 

 8  skidder, or cable skidder.

 

 9        (D) A vehicle that directly loads harvested logs or timber,

 

10  including, but not limited to, a knuckle-boom loader, front-end

 

11  loader, or forklift.

 

12        (E) A bulldozer or road grader being transported to a wood

 

13  harvesting site specifically for the purpose of building or

 

14  maintaining harvest site roads.

 

15        (iii) "Wood harvesting operations" does not include the

 

16  transportation of processed lumber, Christmas trees, or processed

 

17  firewood for a profit making venture.

 

18        (e) For a hearse or ambulance used exclusively by a licensed

 

19  funeral director in the general conduct of the licensee's funeral

 

20  business, including a hearse or ambulance whose owner is engaged

 

21  in the business of leasing or renting the hearse or ambulance to

 

22  others, $1.17 per 100 pounds of the empty weight of the hearse or

 

23  ambulance.

 

24        (f) For a vehicle owned and operated by this state, a state

 

25  institution, a municipality, a privately incorporated, nonprofit

 

26  volunteer fire department, or a nonpublic, nonprofit college or

 

27  university, $5.00 per plate. A registration plate issued under

 


 1  this subdivision expires on June 30 of the year in which new

 

 2  registration plates are reissued for all vehicles by the

 

 3  secretary of state.

 

 4        (g) For a bus including a station wagon, carryall, or

 

 5  similarly constructed vehicle owned and operated by a nonprofit

 

 6  parents' transportation corporation used for school purposes,

 

 7  parochial school or society, church Sunday school, or any other

 

 8  grammar school, or by a nonprofit youth organization or nonprofit

 

 9  rehabilitation facility; or a motor vehicle owned and operated by

 

10  a senior citizen center, $10.00, if the bus, station wagon,

 

11  carryall, or similarly constructed vehicle or motor vehicle is

 

12  designated by proper signs showing the organization operating the

 

13  vehicle.

 

14        (h) For a vehicle owned by a nonprofit organization and used

 

15  to transport equipment for providing dialysis treatment to

 

16  children at camp; for a vehicle owned by the civil air patrol,

 

17  Civil Air Patrol, as organized under 36 USC 40301 to 40307,

 

18  $10.00 per plate, if the vehicle is designated by a proper sign

 

19  showing the civil air patrol's Civil Air Patrol's name; for a

 

20  vehicle owned and operated by a nonprofit veterans center; for a

 

21  vehicle owned and operated by a nonprofit recycling center or a

 

22  federally recognized nonprofit conservation organization; for a

 

23  motor vehicle having a truck chassis and a locomotive or ship's

 

24  body that is owned by a nonprofit veterans organization and used

 

25  exclusively in parades and civic events; for an emergency support

 

26  vehicle used exclusively for emergencies and owned and operated

 

27  by a federally recognized nonprofit charitable organization; or

 


 1  for a vehicle owned and operated by a nonprofit food pantry or

 

 2  nonprofit food bank, $10.00 per plate.

 

 3        (i) For each truck owned and operated free of charge by a

 

 4  bona fide ecclesiastical or charitable corporation, or Red Cross,

 

 5  Girl Scout, or Boy Scout organization, 65 cents per 100 pounds of

 

 6  the empty weight of the truck.

 

 7        (j) For each truck, weighing 8,000 pounds or less, and not

 

 8  used to tow a vehicle, for each privately owned truck used to tow

 

 9  a trailer for recreational purposes only and not involved in a

 

10  profit making venture, and for each vehicle designed and used to

 

11  tow a mobile home or a trailer coach, except as provided in

 

12  subdivision (b), $38.00 or an amount computed according to the

 

13  following schedule of empty weights, whichever is greater:

 

 

14

     Empty weights                                  Per 100 pounds

15

     0 to 2,500 pounds..............................  $     1.40

16

     2,501 to 4,000 pounds..........................        1.76

17

     4,001 to 6,000 pounds..........................        2.20

18

     6,001 to 8,000 pounds..........................        2.72

19

     8,001 to 10,000 pounds.........................        3.25

20

     10,001 to 15,000 pounds........................        3.77

21

     15,001 pounds and over.........................        4.39

 

 

22        If the tax required under subdivision (p) for a vehicle of

 

23  the same model year with the same list price as the vehicle for

 

24  which registration is sought under this subdivision is more than

 

25  the tax provided under the preceding provisions of this

 

26  subdivision for an identical vehicle, the tax required under this

 


 1  subdivision is not less than the tax required under subdivision

 

 2  (p) for a vehicle of the same model year. with the same list

 

 3  price.

 

 4        (k) For each truck weighing 8,000 pounds or less towing a

 

 5  trailer or any other combination of vehicles and for each truck

 

 6  weighing 8,001 pounds or more, road tractor or truck tractor,

 

 7  except as provided in subdivision (j), as follows:

 

 8        (i) Until December 31, 2016, according to the following

 

 9  schedule of elected gross weights:

 

 

10

     Elected gross weight                                    Tax

11

     0 to 24,000 pounds..............................  $    491.00

12

     24,001 to 26,000 pounds.........................       558.00

13

     26,001 to 28,000 pounds.........................       558.00

14

     28,001 to 32,000 pounds.........................       649.00

15

     32,001 to 36,000 pounds.........................       744.00

16

     36,001 to 42,000 pounds.........................       874.00

17

     42,001 to 48,000 pounds.........................     1,005.00

18

     48,001 to 54,000 pounds.........................     1,135.00

19

     54,001 to 60,000 pounds.........................     1,268.00

20

     60,001 to 66,000 pounds.........................     1,398.00

21

     66,001 to 72,000 pounds.........................     1,529.00

22

     72,001 to 80,000 pounds.........................     1,660.00

23

     80,001 to 90,000 pounds.........................     1,793.00

24

     90,001 to 100,000 pounds........................     2,002.00

25

     100,001 to 115,000 pounds.......................     2,223.00

26

     115,001 to 130,000 pounds.......................     2,448.00

27

     130,001 to 145,000 pounds.......................     2,670.00

28

     145,001 to 160,000 pounds.......................     2,894.00


1

     over 160,000 pounds.............................     3,117.00

 

 

 2        (ii) Beginning on January 1, 2017, according to the following

 

 3  schedule of elected gross weights:

 

 

4

     Elected gross weight                                    Tax

5

     0 to 24,000 pounds..............................  $    590.00

6

     24,001 to 26,000 pounds.........................       670.00

7

     26,001 to 28,000 pounds.........................       670.00

8

     28,001 to 32,000 pounds.........................       779.00

9

     32,001 to 36,000 pounds.........................       893.00

10

     36,001 to 42,000 pounds.........................     1,049.00

11

     42,001 to 48,000 pounds.........................     1,206.00

12

     48,001 to 54,000 pounds.........................     1,362.00

13

     54,001 to 60,000 pounds.........................     1,522.00

14

     60,001 to 66,000 pounds.........................     1,678.00

15

     66,001 to 72,000 pounds.........................     1,835.00

16

     72,001 to 80,000 pounds.........................     1,992.00

17

     80,001 to 90,000 pounds.........................     2,152.00

18

     90,001 to 100,000 pounds........................     2,403.00

19

     100,001 to 115,000 pounds.......................     2,668.00

20

     115,001 to 130,000 pounds.......................     2,938.00

21

     130,001 to 145,000 pounds.......................     3,204.00

22

     145,001 to 160,000 pounds.......................     3,473.00

23

     over 160,000 pounds.............................     3,741.00

 

 

24        For each commercial vehicle registered under this

 

25  subdivision or section 801g, $15.00 shall be deposited in a truck

 

26  safety fund to be expended as provided in section 25 of 1951 PA

 


 1  51, MCL 247.675.

 

 2        If a truck tractor or road tractor without trailer is leased

 

 3  from an individual owner-operator, the lessee, whether an

 

 4  individual, firm, or corporation, shall pay to the owner-operator

 

 5  60% of the tax prescribed in this subdivision for the truck

 

 6  tractor or road tractor at the rate of 1/12 for each month of the

 

 7  lease or arrangement in addition to the compensation the owner-

 

 8  operator is entitled to for the rental of his or her equipment.

 

 9        (l) For each pole trailer, semitrailer, trailer coach, or

 

10  trailer, the tax shall be assessed according to the following

 

11  schedule of empty weights:

 

 

12

     Empty weights                                           Tax

13

     0 to 2,499 pounds................................   $   75.00

14

     2,500 to 9,999 pounds............................      200.00

15

     10,000 pounds and over...........................      300.00

 

 

16        The registration plate issued under this subdivision expires

 

17  only when the secretary of state reissues a new registration

 

18  plate for all trailers. Beginning October 1, 2005, if the

 

19  secretary of state reissues a new registration plate for all

 

20  trailers, a person who has once paid the tax as increased by 2003

 

21  PA 152 for a vehicle under this subdivision is not required to

 

22  pay the tax for that vehicle a second time, but is required to

 

23  pay only the cost of the reissued plate at the rate provided in

 

24  section 804(2) for a standard plate. A registration plate issued

 

25  under this subdivision is nontransferable.

 

26        (m) For each commercial vehicle used for the transportation


 

 1  of passengers for hire except for a vehicle for which a payment

 

 2  is made under 1960 PA 2, MCL 257.971 to 257.972, according to the

 

 3  following schedule of empty weights:

 

 

4

     Empty weights                                  Per 100 pounds

5

     0 to 4,000 pounds.............................. $      1.76

6

     4,001 to 6,000 pounds..........................        2.20

7

     6,001 to 10,000 pounds.........................        2.72

8

     10,001 pounds and over.........................        3.25

 

 

 9        (n) For each motorcycle, as follows:

 

 

10

 

(i)

Until February 18, 2019................. $     23.00

11

 

(ii)

Beginning February 19, 2019............. $     25.00

 

 

12        On October 1, 1983, and October 1, 1984, the tax assessed

 

13  under this subdivision shall be annually revised for the

 

14  registrations expiring on the appropriate October 1 or after that

 

15  date by multiplying the tax assessed in the preceding fiscal year

 

16  times the personal income of Michigan for the preceding calendar

 

17  year divided by the personal income of Michigan for the calendar

 

18  year that preceded that calendar year. In performing the

 

19  calculations under this subdivision, the secretary of state shall

 

20  use the spring preliminary report of the United States Department

 

21  of Commerce or its successor agency.

 

22        Beginning January 1, 1984, the registration tax for each

 

23  motorcycle is increased by $3.00. The $3.00 increase is not part

 

24  of the tax assessed under this subdivision for the purpose of the

 


 1  annual October 1 revisions but is in addition to the tax assessed

 

 2  as a result of the annual October 1 revisions. Beginning January

 

 3  1, 1984 and ending February 18, 2019, $3.00 of each motorcycle

 

 4  fee shall be placed in a motorcycle safety fund in the state

 

 5  treasury and shall be used only for funding the motorcycle safety

 

 6  education program as provided for under sections 312b and 811a.

 

 7  Beginning February 19, 2019, $5.00 of each motorcycle fee shall

 

 8  be placed in the motorcycle safety fund and shall be used only

 

 9  for funding the motorcycle safety education program as provided

 

10  for under sections 312b and 811a.

 

11        (o) For each truck weighing 8,001 pounds or more, road

 

12  tractor, or truck tractor used exclusively as a moving van or

 

13  part of a moving van in transporting household furniture and

 

14  household effects or the equipment or those engaged in conducting

 

15  carnivals, at the rate of 80% of the schedule of elected gross

 

16  weights in subdivision (k) as modified by the operation of that

 

17  subdivision.

 

18        (p) After September 30, 1983, each motor vehicle of the 1984

 

19  or a subsequent model year as shown on the application required

 

20  under section 217 that has not been previously subject to the tax

 

21  rates of this section and that is of the motor vehicle category

 

22  otherwise subject to the tax schedule described in subdivision

 

23  (a), and each low-speed vehicle according to the following

 

24  schedule based upon registration periods of 12 months:as follows:

 

25        (i) Except as otherwise provided in this subdivision, for the

 

26  first registration that is not a transfer registration under

 

27  section 809 and for the first registration after a transfer

 


 1  registration under section 809, according to the following

 

 2  schedule based on the vehicle's list price:

 

 3        (A) Until December 31, 2016, as follows:

 

 

4

     List Price                                               Tax

5

     $ 0 - $ 6,000.00................................    $    30.00

6

     More than $ 6,000.00 - $ 7,000.00...............    $    33.00

7

     More than $ 7,000.00 - $ 8,000.00...............    $    38.00

8

     More than $ 8,000.00 - $ 9,000.00...............    $    43.00

9

     More than $ 9,000.00 - $ 10,000.00..............    $    48.00

10

     More than $ 10,000.00 - $ 11,000.00.............    $    53.00

11

     More than $ 11,000.00 - $ 12,000.00.............    $    58.00

12

     More than $ 12,000.00 - $ 13,000.00.............    $    63.00

13

     More than $ 13,000.00 - $ 14,000.00.............    $    68.00

14

     More than $ 14,000.00 - $ 15,000.00.............    $    73.00

15

     More than $ 15,000.00 - $ 16,000.00.............    $    78.00

16

     More than $ 16,000.00 - $ 17,000.00.............    $    83.00

17

     More than $ 17,000.00 - $ 18,000.00.............    $    88.00

18

     More than $ 18,000.00 - $ 19,000.00.............    $    93.00

19

     More than $ 19,000.00 - $ 20,000.00.............    $    98.00

20

     More than $ 20,000.00 - $ 21,000.00.............    $   103.00

21

     More than $ 21,000.00 - $ 22,000.00.............    $   108.00

22

     More than $ 22,000.00 - $ 23,000.00.............    $   113.00

23

     More than $ 23,000.00 - $ 24,000.00.............    $   118.00

24

     More than $ 24,000.00 - $ 25,000.00.............    $   123.00

25

     More than $ 25,000.00 - $ 26,000.00.............    $   128.00

26

     More than $ 26,000.00 - $ 27,000.00.............    $   133.00

27

     More than $ 27,000.00 - $ 28,000.00.............    $   138.00

28

     More than $ 28,000.00 - $ 29,000.00.............    $   143.00


1

     More than $ 29,000.00 - $ 30,000.00.............    $   148.00

 

 

 2        More than $30,000.00, the tax of $148.00 is increased by

 

 3  $5.00 for each $1,000.00 increment or fraction of a $1,000.00

 

 4  increment over $30,000.00. If a current tax increases or

 

 5  decreases as a result of 1998 PA 384, only a vehicle purchased or

 

 6  transferred after January 1, 1999 shall be assessed the increased

 

 7  or decreased tax.

 

 8        (B) Beginning on January 1, 2017, as follows:

 

 

9

     List Price                                               Tax

10

     $ 0 - $ 6,000.00................................    $    36.00

11

     More than $ 6,000.00 - $ 7,000.00...............    $    40.00

12

     More than $ 7,000.00 - $ 8,000.00...............    $    46.00

13

     More than $ 8,000.00 - $ 9,000.00...............    $    52.00

14

     More than $ 9,000.00 - $ 10,000.00..............    $    58.00

15

     More than $ 10,000.00 - $ 11,000.00.............    $    64.00

16

     More than $ 11,000.00 - $ 12,000.00.............    $    70.00

17

     More than $ 12,000.00 - $ 13,000.00.............    $    76.00

18

     More than $ 13,000.00 - $ 14,000.00.............    $    82.00

19

     More than $ 14,000.00 - $ 15,000.00.............    $    88.00

20

     More than $ 15,000.00 - $ 16,000.00.............    $    94.00

21

     More than $ 16,000.00 - $ 17,000.00.............    $   100.00

22

     More than $ 17,000.00 - $ 18,000.00.............    $   106.00

23

     More than $ 18,000.00 - $ 19,000.00.............    $   112.00

24

     More than $ 19,000.00 - $ 20,000.00.............    $   118.00

25

     More than $ 20,000.00 - $ 21,000.00.............    $   124.00

26

     More than $ 21,000.00 - $ 22,000.00.............    $   130.00

27

     More than $ 22,000.00 - $ 23,000.00.............    $   136.00


1

     More than $ 23,000.00 - $ 24,000.00.............    $   142.00

2

     More than $ 24,000.00 - $ 25,000.00.............    $   148.00

3

     More than $ 25,000.00 - $ 26,000.00.............    $   154.00

4

     More than $ 26,000.00 - $ 27,000.00.............    $   160.00

5

     More than $ 27,000.00 - $ 28,000.00.............    $   166.00

6

     More than $ 28,000.00 - $ 29,000.00.............    $   172.00

7

     More than $ 29,000.00 - $ 30,000.00.............    $   178.00

 

 

 8        More than $30,000.00, the tax of $178.00 is increased by

 

 9  $6.00 for each $1,000.00 increment or fraction of a $1,000.00

 

10  increment over $30,000.00. If a current tax increases or

 

11  decreases as a result of 1998 PA 384, only a vehicle purchased or

 

12  transferred after January 1, 1999 shall be assessed the increased

 

13  or decreased tax.

 

14        (ii) For the second registration, 90% of the tax assessed

 

15  under subparagraph (i).

 

16        (iii) For the third registration, 90% of the tax assessed

 

17  under subparagraph (ii).

 

18        (iv) For the fourth and subsequent registrations, 90% of the

 

19  tax assessed under subparagraph (iii).

 

20        For a vehicle of the 1984 or a subsequent model year that

 

21  has been previously registered by a person other than the person

 

22  applying for registration or for a vehicle of the 1984 or a

 

23  subsequent model year that has been previously registered in

 

24  another state or country and is registered for the first time in

 

25  this state, the tax under this subdivision shall be determined by

 

26  subtracting the model year of the vehicle from the calendar year

 

27  for which the registration is sought. If the result is zero or a


 

 1  negative figure, the first registration tax shall be paid. If the

 

 2  result is 1, 2, or 3 or more, then, respectively, the second,

 

 3  third, or subsequent registration tax shall be paid.the tax under

 

 4  this subdivision is determined by subtracting the model year of

 

 5  the vehicle from the calendar year for which the registration is

 

 6  sought. If the result is 0 to 5, the tax is $160.00. If the

 

 7  result is 6 to 10, the tax is $140.00. If the result is 11 to 15,

 

 8  the tax is $115.00. If the result is 16 or more, the tax is

 

 9  $82.00.

 

10        (ii) A passenger motor vehicle that has been modified with a

 

11  permanently installed wheelchair lift mechanism or with

 

12  permanently installed hand controls and that is owned by an

 

13  individual who uses a wheelchair or by an individual who

 

14  transports a member of his or her household who uses a wheelchair

 

15  and for which registration plates are issued under section 803d

 

16  shall be assessed at the rate of 50% of the tax provided for in

 

17  this subdivision. As used in this subdivision, "permanently

 

18  installed hand controls" means a permanently installed device

 

19  designed to replace the brake and gas pedals of a motor vehicle

 

20  with hand controls.

 

21        (iii) On October 1, 2019 and October 1 of each year

 

22  thereafter, the tax assessed under this subdivision shall be

 

23  annually revised for the registrations expiring on the

 

24  appropriate October 1 or after that date by multiplying the tax

 

25  assessed in the preceding fiscal year by 1 plus the lesser of

 

26  0.01 or the inflation rate and rounding up the product to the

 

27  nearest 1/10 of a cent. As used in this subparagraph, "inflation


 

 1  rate" means the annual percentage change in the Consumer Price

 

 2  Index, as determined by the secretary of state, comparing the 2

 

 3  most recent October 1 through September 30 periods that are

 

 4  immediately preceding the appropriate October 1, converted to

 

 5  decimals. If the annual percentage change is negative, then the

 

 6  inflation rate is zero. A determination by the secretary of state

 

 7  of the Consumer Price Index, the inflation rate, or the tax under

 

 8  this subdivision is presumed correct and shall not be set aside

 

 9  unless an administrative tribunal or a court of competent

 

10  jurisdiction finds the department's determination to be clearly

 

11  erroneous.

 

12        (q) For a wrecker, $200.00.

 

13        (r) When the secretary of state computes a tax under this

 

14  act, a computation that does not result in a whole dollar figure

 

15  shall be rounded to the next lower whole dollar when the

 

16  computation results in a figure ending in 50 cents or less and

 

17  shall be rounded to the next higher whole dollar when the

 

18  computation results in a figure ending in 51 cents or more,

 

19  unless specific taxes are specified, and the secretary of state

 

20  may accept the manufacturer's shipping weight of the vehicle

 

21  fully equipped for the use for which the registration application

 

22  is made. If the weight is not correctly stated or is not

 

23  satisfactory, the secretary of state shall determine the actual

 

24  weight. Each application for registration of a vehicle under

 

25  subdivisions (j) and (m) shall have attached to the application a

 

26  scale weight receipt of the vehicle fully equipped as of the time

 

27  the application is made. The scale weight receipt is not


 

 1  necessary if there is presented with the application a

 

 2  registration receipt of the previous year that shows on its face

 

 3  the weight of the motor vehicle as registered with the secretary

 

 4  of state and that is accompanied by a statement of the applicant

 

 5  that there has not been a structural change in the motor vehicle

 

 6  that has increased the weight and that the previous registered

 

 7  weight is the true weight.

 

 8        (2) A manufacturer is not exempted under this act from

 

 9  paying ad valorem taxes on vehicles in stock or bond, except on

 

10  the specified number of motor vehicles registered. A dealer is

 

11  exempt from paying ad valorem taxes on vehicles in stock or bond.

 

12        (3) Until October 1, 2019, the tax for a vehicle with an

 

13  empty weight over 10,000 pounds imposed under subsection (1)(a)

 

14  and the taxes imposed under subsection (1)(c), (d), (e), (f),

 

15  (i), (j), (m), (o), and (p) are each increased as follows:

 

16        (a) A regulatory fee of $2.25 that shall be credited to the

 

17  traffic law enforcement and safety fund created in section 819a

 

18  and used to regulate highway safety.

 

19        (b) A fee of $5.75 that shall be credited to the

 

20  transportation administration collection fund created in section

 

21  810b.

 

22        (4) Except as otherwise provided in this subsection, if a

 

23  tax required to be paid under this section is not received by the

 

24  secretary of state on or before the expiration date of the

 

25  registration plate, the secretary of state shall collect a late

 

26  fee of $10.00 for each registration renewed after the expiration

 

27  date. An application for a renewal of a registration using the


 

 1  regular mail and postmarked before the expiration date of that

 

 2  registration shall not be assessed a late fee. The late fee

 

 3  collected under this subsection shall be deposited into the

 

 4  general fund. The secretary of state shall waive the late fee

 

 5  collected under this subsection if all of the following are

 

 6  satisfied:

 

 7        (a) The registrant presents proof of storage insurance for

 

 8  the vehicle for which the late fee is assessed that is valid for

 

 9  the period of time between the expiration date of the most recent

 

10  registration and the date of application for the renewal.

 

11        (b) The registrant requests in person at a department of

 

12  state branch office that the late fee be waived at the time of

 

13  application for the renewal.

 

14        (5) In addition to the registration taxes under this

 

15  section, the secretary of state shall collect taxes charged under

 

16  section 801j and credit revenues to a regional transit authority

 

17  created under the regional transit authority act, 2012 PA 387,

 

18  MCL 124.541 to 124.558, minus necessary collection expenses as

 

19  provided in section 9 of article IX of the state constitution of

 

20  1963. Necessary collection expenses incurred by the secretary of

 

21  state under this subsection shall be based upon an established

 

22  cost allocation methodology.

 

23        (6) This section does not apply to a historic vehicle.

 

24        (7) Beginning January 1, 2017, the registration fee imposed

 

25  under this section for a vehicle using 4 or more tires is

 

26  increased as follows:

 

27        (a) If the vehicle is a hybrid electric vehicle, the


 

 1  registration fee for that vehicle is increased by $30.00 for a

 

 2  vehicle with an empty weight of 8,000 pounds or less, and $100.00

 

 3  for a vehicle with an empty weight of more than 8,000 pounds. As

 

 4  used in this subdivision and subsection (8)(a), "hybrid electric

 

 5  vehicle" means a vehicle that can be propelled at least in part

 

 6  by electrical energy and uses a battery storage system of at

 

 7  least 4 kilowatt-hours, but is also capable of using gasoline,

 

 8  diesel fuel, or alternative fuel to propel the vehicle.

 

 9        (b) If the vehicle is a nonhybrid electric vehicle, the

 

10  registration fee for that vehicle is increased by $100.00 for a

 

11  vehicle with an empty weight of 8,000 pounds or less, and $200.00

 

12  for a vehicle with an empty weight of more than 8,000 pounds. As

 

13  used in this subdivision and subsection (8)(b), "nonhybrid

 

14  electric vehicle" means a vehicle that is propelled solely by

 

15  electrical energy and that is not capable of using gasoline,

 

16  diesel fuel, or alternative fuel to propel the vehicle.

 

17        (8) Beginning January 1, 2017, if the tax on gasoline

 

18  imposed under section 8 of the motor fuel tax act, 2000 PA 403,

 

19  MCL 207.1008, is increased above 19 cents per gallon, the

 

20  secretary of state shall increase the fees collected under

 

21  subsection (7) as follows:

 

22        (a) For a hybrid electric vehicle, $2.50 per each 1 cent

 

23  above 19 cents per gallon.

 

24        (b) For a nonhybrid electric vehicle, $5.00 per each 1 cent

 

25  above 19 cents per gallon.

 

26        (9) As used in this section:

 

27        (a) "Alternative fuel" means that term as defined in section


 

 1  151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.

 

 2        (b) "Diesel fuel" means that term as defined in section 2 of

 

 3  the motor fuel tax act, 2000 PA 403, MCL 207.1002.

 

 4        (c) "Gasoline" means that term as defined in section 3 of

 

 5  the motor fuel tax act, 2000 PA 403, MCL 207.1003.

 

 6        (d) "Gross proceeds" means that term as defined in section 1

 

 7  of the general sales tax act, 1933 PA 167, MCL 205.51, and

 

 8  includes the value of the motor vehicle used as part payment of

 

 9  the purchase price as that value is agreed to by the parties to

 

10  the sale, as evidenced by the signed agreement executed under

 

11  section 251.

 

12        (e) "List price" means the manufacturer's suggested base

 

13  list price as published by the secretary of state, or the

 

14  manufacturer's suggested retail price as shown on the label

 

15  required to be affixed to the vehicle under 15 USC 1232, if the

 

16  secretary of state has not at the time of the sale of the vehicle

 

17  published a manufacturer's suggested retail price for that

 

18  vehicle, or the purchase price of the vehicle if the

 

19  manufacturer's suggested base list price is unavailable from the

 

20  sources described in this subdivision.

 

21        (f) "Purchase price" means the gross proceeds received by

 

22  the seller in consideration of the sale of the motor vehicle

 

23  being registered.

 

24        Sec. 801j. (1) Except as otherwise provided in subsection

 

25  (6), in addition to the required vehicle registration tax under

 

26  section 801(1)(p), a regional transit authority created under the

 

27  regional transit authority act, 2012 PA 387, MCL 124.541 to


 

 1  124.558, may charge an additional tax on vehicle registrations

 

 2  issued to residents of a public transit region of not more than

 

 3  $1.20 for each $1,000.00 or fraction of $1,000.00 of the

 

 4  vehicle's list price. as used in calculating the tax under

 

 5  section 801(1)(p). The authority may charge the additional tax

 

 6  only upon the approval of a majority of the electors in a public

 

 7  transit region voting on the tax at an election held on the

 

 8  regular November election date as provided in section 641(1)(d)

 

 9  641(1)(c) of the Michigan election law, 1954 PA 116, MCL 168.641.

 

10  As used in this subsection:

 

11        (a) "Gross proceeds" means that term as defined in section 1

 

12  of the general sales tax act, 1933 PA 167, MCL 205.51, and

 

13  includes the value of the motor vehicle used as part payment of

 

14  the purchase price as that value is agreed to by the parties to

 

15  the sale, as evidenced by the signed agreement executed under

 

16  section 251.

 

17        (b) "List price" means the manufacturer's suggested base

 

18  list price as published by the secretary of state, or the

 

19  manufacturer's suggested retail price as shown on the label

 

20  required to be affixed to the vehicle under 15 USC 1232, if the

 

21  secretary of state has not at the time of the sale of the vehicle

 

22  published a manufacturer's suggested retail price for that

 

23  vehicle, or the purchase price of the vehicle if the

 

24  manufacturer's suggested base list price is unavailable from the

 

25  sources described in this subdivision.

 

26        (c) "Purchase price" means the gross proceeds received by

 

27  the seller in consideration of the sale of the motor vehicle


 

 1  being registered.

 

 2        (2) In addition to any other requirements imposed by law,

 

 3  the ballot question proposing authorization of the tax under

 

 4  subsection (1) shall specify how the proceeds of the tax shall be

 

 5  expended.

 

 6        (3) The tax collected under this section shall only be used

 

 7  by the regional transit authority for comprehensive

 

 8  transportation purposes as defined by law for purposes of section

 

 9  9 of article IX of the state constitution of 1963.

 

10        (4) A proposal for a tax under this section shall not be

 

11  placed on the ballot under subsection (1) unless the proposal is

 

12  adopted by a resolution of the board of directors of the regional

 

13  transit authority and certified by the board of directors not

 

14  later than 70 days before the election to the county clerk of

 

15  each county within the public transit region for inclusion on the

 

16  ballot.

 

17        (5) Except as otherwise provided in subsection (6), if a

 

18  majority of voters in a public transit region approve a tax under

 

19  subsection (1), no later than 1 year after voter approval, the

 

20  secretary of state shall collect the tax on all vehicles

 

21  registered to residents of the public transit region under

 

22  section 801(1)(p) and shall credit the tax collected to the

 

23  regional transit authority, minus necessary collection expenses

 

24  as provided in section 9 of article IX of the state constitution

 

25  of 1963. Necessary collection expenses incurred by the secretary

 

26  of state under this subsection shall be based upon an established

 

27  cost allocation methodology.


 

 1        (6) This section does not apply to a company test vehicle.

 

 2  As used in this subsection, "company test vehicle" means a

 

 3  vehicle that is owned by a manufacturer and that satisfies 1 or

 

 4  both of the following:

 

 5        (a) The vehicle is part of a product testing program as

 

 6  defined by the United States department Department of treasury

 

 7  Treasury under treas. reg. 1.132-5(n)(2001).26 CFR 1.132-5(n).

 

 8        (b) The vehicle is furnished by the manufacturer to an

 

 9  employee of the manufacturer for the purpose of testing,

 

10  evaluating product quality and performance, reporting defects, or

 

11  suggesting product or production improvements as an ordinary and

 

12  necessary business expense of the manufacturer.

 

13        Enacting section 1. This amendatory act takes effect 90 days

 

14  after the date it is enacted into law.