Bill Text: MI HB6084 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Vehicles; registration; registration fees; revise calculation formula for tax rate assessed on taxable value. Amends sec. 801 of 1949 PA 300 (MCL 257.801).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-12-10 - Printed Bill Filed 12/10/2014 [HB6084 Detail]

Download: Michigan-2013-HB6084-Introduced.html

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HOUSE BILL No. 6084

 

December 9, 2014, Introduced by Rep. Howrylak and referred to the Committee on Transportation and Infrastructure.

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 801 (MCL 257.801), as amended by 2012 PA 498.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

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

 

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

 

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

 

 5  carriers operating motor vehicles and trailers under the motor

 

 6  carrier act, 1933 PA 254, MCL 475.1 to 479.43; except the taxes

 

 7  imposed by the motor carrier fuel tax act, 1980 PA 119, MCL

 

 8  207.211 to 207.234; and except as otherwise provided by this act:

 

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

 

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

 

11  more than 8,000 pounds or less, except as otherwise provided,

 

 1  according to the following schedule of empty weights:

 

 

2       Empty weights                                          Tax

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

4       3,001 to 3,500 pounds..............................    32.00

5       3,501 to 4,000 pounds..............................    37.00

6       4,001 to 4,500 pounds..............................    43.00

7       4,501 to 5,000 pounds..............................    47.00

8       5,001 to 5,500 pounds..............................    52.00

9       5,501 to 6,000 pounds..............................    57.00

10      6,001 to 6,500 pounds..............................    62.00

11      6,501 to 7,000 pounds..............................    67.00

12      7,001 to 7,500 pounds..............................    71.00

13      7,501 to 8,000 pounds..............................    77.00

14      8,001 to 8,500 pounds..............................    81.00

15      8,501 to 9,000 pounds..............................    86.00

16      9,001 to 9,500 pounds..............................    91.00

17      9,501 to 10,000 pounds.............................    95.00

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

19                                                   of empty weight

 

 

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

 

21  under this subdivision shall be annually revised for the

 

22  registrations expiring on the appropriate October 1 or after that

 

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

 

24  times the personal income of Michigan for the preceding calendar

 

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

 

26  year that preceded that calendar year. In performing the

 

27  calculations under this subdivision, the secretary of state shall

 

28  use the spring preliminary report of the United States department

 

 1  of commerce or its successor agency. A van that is owned by an

 

 2  individual who uses a wheelchair or by an individual who

 

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

 

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

 

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

 

 6  this subdivision.

 

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

 

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

 

 9  that is not subject to taxation under 1959 PA 243, MCL 125.1035

 

10  to 125.1043, and while located on land otherwise assessable as

 

11  real property under the general property tax act, 1893 PA 206,

 

12  MCL 211.1 to 211.155, if the trailer coach is used as a place of

 

13  habitation, and whether or not permanently affixed to the soil,

 

14  is not exempt from real property taxes if the trailer coach is

 

15  used as a place of habitation, whether or not it is permanently

 

16  affixed to the soil.

 

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

 

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

 

19  connection with a farming operation, including a farmer hauling

 

20  livestock or farm equipment for other farmers for remuneration in

 

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

 

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

 

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

 

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

 

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

 

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

 

27  subject to the highest registration tax applicable to the nonfarm

 

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

 

 2  under this act.

 

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

 

 4  wood harvester and used exclusively in connection with the wood

 

 5  harvesting operations or a truck used exclusively to haul milk

 

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

 

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

 

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

 

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

 

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

 

11  subdivision:

 

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

 

13  and transporting raw materials in the form produced at the

 

14  harvest site or hauling and transporting wood harvesting

 

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

 

16  whose primary activity is tree-trimming or landscaping.

 

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

 

18  following:

 

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

 

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

 

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

 

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

 

23  processor, chipper, or saw table.

 

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

 

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

 

26  skidder, or cable skidder.

 

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

 

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

 

 2  loader, or forklift.

 

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

 

 4  harvesting site specifically for the purpose of building or

 

 5  maintaining harvest site roads.

 

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

 

 7  transportation of processed lumber, Christmas trees, or processed

 

 8  firewood for a profit making venture.

 

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

 

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

 

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

 

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

 

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

 

14  ambulance.

 

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

 

16  institution, a municipality, a privately incorporated, nonprofit

 

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

 

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

 

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

 

20  registration plates are reissued for all vehicles by the

 

21  secretary of state.

 

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

 

23  similarly constructed vehicle owned and operated by a nonprofit

 

24  parents' transportation corporation used for school purposes,

 

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

 

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

 

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

 

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

 

 2  carryall, or similarly constructed vehicle or motor vehicle is

 

 3  designated by proper signs showing the organization operating the

 

 4  vehicle.

 

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

 

 6  to transport equipment for providing dialysis treatment to

 

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

 

 8  organized under 36 USC 40301 to 40307, $10.00 per plate, if the

 

 9  vehicle is designated by a proper sign showing the civil air

 

10  patrol's name; for a vehicle owned and operated by a nonprofit

 

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

 

12  recycling center or a federally recognized nonprofit conservation

 

13  organization; for a motor vehicle having a truck chassis and a

 

14  locomotive or ship's body that is owned by a nonprofit veterans

 

15  organization and used exclusively in parades and civic events; or

 

16  for an emergency support vehicle used exclusively for emergencies

 

17  and owned and operated by a federally recognized nonprofit

 

18  charitable organization, $10.00 per plate.

 

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

 

20  bona fide ecclesiastical or charitable corporation, or red cross,

 

21  girl scout, or boy scout organization, 65 cents per 100 pounds of

 

22  the empty weight of the truck.

 

23        (j) For each a truck , weighing 8,000 pounds or less, and

 

24  not used to tow a vehicle, for each a privately owned truck used

 

25  to tow a trailer for recreational purposes only and not involved

 

26  in a profit making venture, and for each a vehicle designed and

 

27  used to tow a mobile home or a trailer coach, except as provided

 

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

 

 2  following schedule of empty weights, whichever is greater:

 

 

3       Empty weights                               Per 100 pounds

4       0 to 2,500 pounds..............................  $     1.40

5       2,501 to 4,000 pounds..........................        1.76

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

7       6,001 to 8,000 pounds..........................        2.72

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

9       10,001 to 15,000 pounds........................        3.77

10      15,001 pounds and over.........................        4.39

 

 

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

 

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

 

13  which registration is sought under this subdivision is more than

 

14  the tax provided under the preceding provisions of this

 

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

 

16  subdivision is not less than the tax required under subdivision

 

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

 

18  price.

 

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

 

20  trailer or any other combination of vehicles and for each a truck

 

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

 

22  except as provided in subdivision (j) according to the following

 

23  schedule of elected gross weights:

 

 

24      Elected gross weight                                    Tax

25      0 to 24,000 pounds..............................  $    491.00

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

1       26,001 to 28,000 pounds.........................       558.00

2       28,001 to 32,000 pounds.........................       649.00

3       32,001 to 36,000 pounds.........................       744.00

4       36,001 to 42,000 pounds.........................       874.00

5       42,001 to 48,000 pounds.........................     1,005.00

6       48,001 to 54,000 pounds.........................     1,135.00

7       54,001 to 60,000 pounds.........................     1,268.00

8       60,001 to 66,000 pounds.........................     1,398.00

9       66,001 to 72,000 pounds.........................     1,529.00

10      72,001 to 80,000 pounds.........................     1,660.00

11      80,001 to 90,000 pounds.........................     1,793.00

12      90,001 to 100,000 pounds........................     2,002.00

13      100,001 to 115,000 pounds.......................     2,223.00

14      115,001 to 130,000 pounds.......................     2,448.00

15      130,001 to 145,000 pounds.......................     2,670.00

16      145,001 to 160,000 pounds.......................     2,894.00

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

 

 

18        For each commercial vehicle registered under this

 

19  subdivision, $15.00 shall be deposited in a truck safety fund to

 

20  be expended for the purposes prescribed in section 25 of 1951 PA

 

21  51, MCL 247.675.

 

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

 

23  from an individual owner-operator, the lessee, whether a person

 

24  an individual, firm, or corporation, shall pay to the owner-

 

25  operator 60% of the tax prescribed in this subdivision for to the

 

26  owner-operator of the truck tractor or road tractor at the rate

 

27  of 1/12 for each month of the lease or arrangement in addition to

 

28  the compensation the owner-operator is entitled to for the rental

 

29  of his or her equipment.

 

 1        (l) For each a pole trailer, semitrailer, trailer coach, or

 

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

 

 3  schedule of empty weights:

 

 

4       Empty weights                                           Tax

5       0 to 2,499 pounds................................   $   75.00

6       2,500 to 9,999 pounds............................      200.00

7       10,000 pounds and over...........................      300.00

 

 

 8        The A registration plate issued under this subdivision

 

 9  expires only when the secretary of state reissues a new

 

10  registration plate for all trailers. Beginning October 1, 2005,

 

11  if If the secretary of state reissues a new registration plate

 

12  for all trailers, a person who has once paid the tax as increased

 

13  by 2003 PA 152 for a vehicle under this subdivision is not

 

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

 

15  required to pay only the cost of the reissued plate at the rate

 

16  provided in section 804(2) for a standard plate. A registration

 

17  plate issued under this subdivision is nontransferable.

 

18        (m) For each a commercial vehicle used for the

 

19  transportation of passengers for hire except for a vehicle for

 

20  which a payment is made under 1960 PA 2, MCL 257.971 to 257.972,

 

21  according to the following schedule of empty weights:

 

 

22      Empty weights                                  Per 100 pounds

23      0 to 4,000 pounds.............................. $      1.76

24      4,001 to 6,000 pounds..........................        2.20

25      6,001 to 10,000 pounds.........................        2.72

1       10,001 pounds and over.........................        3.25

 

 

 2        (n) For each a motorcycle, $23.00.

 

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

 

 4  under this subdivision shall be annually revised for the

 

 5  registrations expiring on the appropriate October 1 or after that

 

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

 

 7  times the personal income of Michigan for the preceding calendar

 

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

 

 9  year that preceded that calendar year. In performing the

 

10  calculations under this subdivision, the secretary of state shall

 

11  use the spring preliminary report of the United States department

 

12  of commerce or its successor agency.

 

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

 

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

 

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

 

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

 

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

 

18  1, 1984, $3.00 Three dollars of each motorcycle fee shall be

 

19  placed in a motorcycle safety fund in the state treasury and

 

20  shall be used only for funding the motorcycle safety education

 

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

 

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

 

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

 

24  part of a moving van in transporting household furniture and

 

25  household effects or the equipment or those engaged in conducting

 

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

 

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

 

 2  subdivision.

 

 3        (p) After September 30, 1983, each A motor vehicle of the

 

 4  1984 or a subsequent model year as shown on the application

 

 5  required under section 217 that has not been previously subject

 

 6  to the tax rates of this section and that is of the motor vehicle

 

 7  category otherwise subject to the tax schedule described in

 

 8  subdivision (a), and each a low-speed vehicle according to the

 

 9  following schedule based upon registration periods of 12 months:

 

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

 

11  first registration that is not a transfer registration under

 

12  section 809 and for the first registration after a transfer

 

13  registration under section 809, according to the following

 

14  schedule based on the vehicle's list price:

 

 

15      List Price                                               Tax

16      $ 0 - $ 6,000.00................................    $    30.00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

 

14  $5.00 for each $1,000.00 increment or fraction of a $1,000.00

 

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

 

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

 

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

 

18  or decreased tax.

 

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

 

20  under subparagraph (i).

 

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

 

22  under subparagraph (ii).

 

23        (iv) For the fourth and subsequent through sixth

 

24  registrations, 90% of the tax assessed under subparagraph (iii).

 

25        (v) For the seventh through ninth registrations, 85% of the

 

26  tax assessed under subparagraph (iv).

 

27        (vi) For the tenth and subsequent registrations, 80% of the

 

28  tax assessed under subparagraph (v).

 

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

 

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

 

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

 

 4  subsequent model year that has been previously registered in

 

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

 

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

 

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

 

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

 

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

 

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

 

11  third, or subsequent registration tax shall be paid. A van that

 

12  is owned by an individual who uses a wheelchair or by an

 

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

 

14  uses a wheelchair and for which registration plates are issued

 

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

 

16  tax provided for in this subdivision.

 

17        (q) For a wrecker, $200.00.

 

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

 

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

 

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

 

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

 

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

 

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

 

24  unless specific taxes are specified. , and the The secretary of

 

25  state may accept the manufacturer's shipping weight of the

 

26  vehicle fully equipped for the use for which the registration

 

27  application is made. If the weight of the vehicle is not

 

 1  correctly stated or is not satisfactory, the secretary of state

 

 2  shall determine the actual weight. Each application An applicant

 

 3  for registration of a vehicle under subdivisions (j) and (m)

 

 4  shall have attached attach to the application a scale weight

 

 5  receipt of the vehicle fully equipped as of the time the

 

 6  application is made. The scale weight receipt is not necessary if

 

 7  there is presented the applicant presents with the application a

 

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

 

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

 

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

 

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

 

12  that has increased the weight and that the previous registered

 

13  weight is the true weight.

 

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

 

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

 

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

 

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

 

18        (3) Until October 1, 2015, the tax for a vehicle with an

 

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

 

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

 

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

 

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

 

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

 

24  and used to regulate highway safety.

 

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

 

26  transportation administration collection fund created in section

 

27  810b.

 

 1        (4) If a tax required to be paid under this section is not

 

 2  received by the secretary of state on or before the expiration

 

 3  date of the registration plate, the secretary of state shall

 

 4  collect a late fee of $10.00 for each registration renewed after

 

 5  the expiration date. An application for a renewal of a

 

 6  registration using the regular mail and postmarked before the

 

 7  expiration date of that registration shall not be assessed a late

 

 8  fee. The late fee collected under this subsection shall be

 

 9  deposited into the general fund.

 

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

 

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

 

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

 

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

 

14  MCL 125.541 to 124.558, minus necessary collection expenses as

 

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

 

16  1963. Necessary collection expenses incurred by the secretary of

 

17  state under this subsection shall be based upon an established

 

18  cost allocation methodology.

 

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

 

20        (7) As used in this section:

 

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

 

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

 

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

 

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

 

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

 

26  section 251.

 

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

 

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

 

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

 

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

 

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

 

 5  published a manufacturer's suggested retail price for that

 

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

 

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

 

 8  sources described in this subdivision.

 

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

 

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

 

11  being registered.