Bill Text: MI SB0585 | 2021-2022 | 101st Legislature | Introduced

Michigan Senate Bill 585 (Prior Session Legislation)

Introduced

Bill Title: Vehicles: registration; auto dealerships to process vehicle registration transactions; allow. Amends secs. 217 & 801 of 1949 PA 300 (MCL 257.217 & 257.801).

Spectrum: Moderate Partisan Bill (Republican 16-2)

Status: (Introduced - Dead) 2021-06-30 - Referred To Committee On Regulatory Reform [SB0585 Detail]

Download: Michigan-2021-SB0585-Introduced.html

SENATE BILL NO. 585

June 30, 2021, Introduced by Senators VICTORY, LASATA, HORN, DALEY, BIZON, BUMSTEAD, ZORN, OUTMAN, MACDONALD, THEIS, LAUWERS, WOJNO, STAMAS, VANDERWALL, RUNESTAD, JOHNSON, CHANG and SCHMIDT and referred to the Committee on Regulatory Reform.

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending sections 217 and 801 (MCL 257.217 and 257.801), section 217 as amended by 2014 PA 290 and section 801 as amended by 2020 PA 103.

the people of the state of michigan enact:

Sec. 217. (1) An Except as otherwise provided in subsection (11), an owner of a vehicle that is subject to registration under this act shall apply to the secretary of state, upon on an

appropriate form furnished by the secretary of state, for the registration of the vehicle and issuance of a certificate of title for the vehicle. A vehicle brought into this state from another state or jurisdiction that has a rebuilt, salvage, scrap, flood, or comparable certificate of title issued by that other state or jurisdiction shall must be issued a rebuilt, salvage, scrap, or flood certificate of title by the secretary of state. The application shall must be accompanied by the required fee. An application for a certificate of title shall must bear the signature or verification and certification of the owner. The application shall must contain all of the following:

(a) The owner's name, the owner's bona fide residence, and either of the following:

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

(ii) If the owner is a firm, association, partnership, limited liability company, or corporation, the owner's business address.

(b) A description of the vehicle including the make or name, style of body, and model year; the number of miles, not including the tenths of a mile, registered on the vehicle's odometer at the time of transfer; whether the vehicle is a flood vehicle or another state previously issued the vehicle a flood certificate of title; whether the vehicle is to be or has been used as a taxi or police vehicle, or by a political subdivision of this state, unless the vehicle is owned by a dealer and loaned or leased to a political subdivision of this state for use as a driver education vehicle; whether the vehicle has previously been issued a salvage or rebuilt certificate of title from this state or a comparable certificate of title from any other state or jurisdiction; vehicle identification number; and the vehicle's weight fully equipped, if a passenger

vehicle registered in accordance with section 801(1)(a), and, if a trailer coach or pickup camper, in addition to the weight, the manufacturer's serial number, or in the absence of the serial number, a number assigned by the secretary of state. A number assigned by the secretary of state shall must be permanently placed on the trailer coach or pickup camper in the manner and place designated by the secretary of state.

(c) A statement of the applicant's title and the names and addresses of the holders of security interests in the vehicle and in an accessory to the vehicle, in the order of their priority.

(d) Further information that the secretary of state reasonably requires to enable the secretary of state to determine whether the vehicle is lawfully entitled to registration and the owner entitled to a certificate of title. If the secretary of state is not satisfied as to the ownership of a vehicle having a value over $2,500.00 or that is less than 10 years old, before registering the vehicle and issuing a certificate of title, the secretary of state may require the applicant to file a properly executed surety bond in a form prescribed by the secretary of state and executed by the applicant and a company authorized to conduct a surety business in this state. The bond shall must be in an amount equal to twice the value of the vehicle as determined by the secretary of state and shall must be conditioned to indemnify or reimburse the secretary of state, any prior owner, and any subsequent purchaser or lessee of the vehicle and their successors in interest against any expense, loss, or damage, including reasonable attorney's fees, by reason of the issuance of a certificate of title for the vehicle or on account of any defect in the right, title, or interest of the applicant in the vehicle. An interested person has a right of

action to recover on the bond for a breach of the conditions of the bond, but the aggregate liability of the surety to all persons shall must not exceed the amount of the bond. If the secretary of state is not satisfied as to the ownership of a vehicle that is valued at $2,500.00 or less and that is 10 years old or older, the secretary of state shall require the applicant to certify that the applicant is the owner of the vehicle and entitled to register and title the vehicle.

(e) Except as provided in subdivision (f), an application for a commercial vehicle shall must also have attached a scale weight receipt of the motor vehicle fully equipped as of the time the application is made. A scale weight receipt is not necessary if there is presented the applicant presents with the application a registration receipt of the previous year that shows on its face the empty weight of the motor vehicle as registered with the secretary of state that is accompanied by a statement of the applicant that there has not been structural change in the motor vehicle that has increased the empty weight and that the previous registered weight is the true weight.

(f) An application for registration of a vehicle on the basis of elected gross weight shall must include a declaration by the applicant specifying the elected gross weight for which application is being made.

(g) If the application is for a certificate of title of a motor vehicle registered in accordance with section 801(1)(p), the application shall must include the manufacturer's suggested base list price for the model year of the vehicle. The base list price shall be is the manufacturer's suggested retail price as shown on the label required to be affixed to the vehicle under 15 USC 1232.

If the manufacturer's suggested retail price is unavailable, the application shall must list the purchase price of the vehicle as defined in section 801.

(2) An applicant for registration of a leased pickup truck or passenger vehicle that is subject to registration under this act, except a vehicle that is subject to a registration fee under section 801g, shall disclose in writing to the secretary of state the lessee's name, the lessee's bona fide residence, and either of the following:

(a) If the lessee is an individual, the lessee's Michigan driver license number or Michigan personal identification number or, if the lessee does not have a Michigan driver license or Michigan personal identification number, the lessee's mailing address.

(b) If the lessee is a firm, association, partnership, limited liability company, or corporation, the lessee's business address.

(3) The secretary of state shall maintain the information described in subsection (2) on the secretary of state's computer records.

(4) Except as provided in subsection (5), a dealer selling, leasing, or exchanging vehicles required to be titled, within 15 days after delivering a vehicle to the purchaser or lessee, and a person engaged in the sale of vessels required to be numbered by part 801 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.80101 to 324.80199, within 15 days after delivering a boat trailer weighing less than 2,500 pounds to the purchaser or lessee, shall apply to the secretary of state for a new title, if required, and transfer or secure registration plates and secure a certificate of registration for the vehicle or boat

trailer, in the name of the purchaser or lessee. The dealer's license may be suspended or revoked in accordance with section 249 for failure to apply for a title when required or for failure to transfer or secure registration plates and certificate of registration within the 15 days required by this section. If the dealer or person fails to apply for a title when required, and to transfer or secure registration plates and secure a certificate of registration and pay the required fees within 15 days of delivery of the vehicle or boat trailer, a title and registration for the vehicle or boat trailer may subsequently be acquired only upon the payment of a late transfer fee of $15.00 for an individual or a dealer other than a dealer subject to section 235b in addition to the fees specified in section 806. For a used or secondhand vehicle dealer subject to section 235b, the late transfer fee is $100.00 in addition to the fees specified in section 806. The purchaser or lessee of the vehicle or the purchaser of the boat trailer shall sign the application, including, if applicable, the declaration specifying the maximum elected gross weight as required by subsection (1)(f), and other necessary papers to enable the dealer or person to secure the title, registration plates, and transfers from the secretary of state. If the secretary of state mails or delivers a purchaser's certificate of title to a dealer, the dealer shall mail or deliver the certificate of title to the purchaser not more than 5 days after receiving the certificate of title from the secretary of state. However, as provided under section 238, the secretary of state is not required to issue a title to the owner of a vehicle or lienholder if the title is subject to a security interest.

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

vehicle shall apply to the secretary of state for a new title for the vehicle within 15 days after it receives the certificate of title from the lessor or manufacturer under section 235 or section 235b and transfer or secure registration plates and secure a certificate of registration for the vehicle in the name of the purchaser. The dealer's license may be suspended or revoked in accordance with section 249 for failure to apply for a title when required or for failure to transfer or secure registration plates and certificate of registration within the 15-day period. If the dealer or person fails to apply for a title when required, and to transfer or secure registration plates and secure a certificate of registration and pay the required fees within the 15-day time period, a title and registration for the vehicle may subsequently be acquired only upon the payment of a late transfer fee of $15.00 for an individual or dealer other than a used or secondhand vehicle dealer subject to section 235b in addition to the fees specified in section 806. The late transfer fee for a used or secondhand vehicle dealer subject to section 235b is $100.00 in addition to the fees specified in section 806. The purchaser of the vehicle shall sign the application, including, if applicable, the declaration specifying the maximum elected gross weight as required by subsection (1)(f), and other necessary papers to enable the dealer or person to secure the title, registration plates, and transfers from the secretary of state. If the secretary of state mails or delivers a purchaser's certificate of title to a dealer, the dealer shall mail or deliver the certificate of title to the purchaser not more than 5 days after receiving the certificate of title from the secretary of state. However, as provided under section 238, the secretary of state is not required to issue a title to the owner of

a vehicle if the title is subject to a security interest.

(6) If a vehicle is delivered to a purchaser or lessee who has valid Michigan registration plates that are to be transferred to the vehicle, and an application for title, if required, and registration for the vehicle is not made before delivery of the vehicle to the purchaser or lessee, the registration plates shall must be affixed to the vehicle immediately, and the dealer shall provide the purchaser or lessee with an instrument in writing, on a form prescribed by the secretary of state, which shall serve that serves as a temporary registration for the vehicle for a period of 15 days from the date the vehicle is delivered.

(7) If the seller does not prepare the credit information, contract note, and mortgage, and the holder, finance company, credit union, or banking institution requires the installment seller to record the lien on the title, the holder, finance company, credit union, or banking institution shall pay the seller a service fee of not more than $10.00. The service fee shall must be paid from the finance charges and shall must not be charged to the buyer in addition to the finance charges. The holder, finance company, credit union, or banking institution shall issue its check or bank draft for the principal amount financed, payable jointly to the buyer and seller, and there shall the following must be imprinted on the back side of the check or bank draft: the following:

"Under Michigan law, the seller must record a first lien in favor of (name of lender) _______________ on the vehicle with vehicle identification number _______________ and title the vehicle only in the name(s) shown on the reverse side."

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

subsection (7), the holder, finance company, credit union, or banking institution shall note the name or names of the prospective owners. Failure of the holder, finance company, credit union, or banking institution to comply with these requirements frees the seller from any obligation to record the lien or from any liability that may arise as a result of the failure to record the lien. A service fee shall must not be charged to the buyer.

(9) In the absence of actual malice proved independently and not inferred from lack of probable cause, a person who in any manner causes a prosecution for larceny of a motor vehicle; for embezzlement of a motor vehicle; for any crime an element of which is the taking of a motor vehicle without authority; or for buying, receiving, possessing, leasing, or aiding in the concealment of a stolen, embezzled, or converted motor vehicle knowing that the motor vehicle has been stolen, embezzled, or converted, is not liable for damages in a civil action for causing the prosecution. This subsection does not relieve a person from proving any other element necessary to sustain his or her cause of action.

(10) Receipt by the secretary of state of a properly tendered application for a certificate of title on which a security interest in a vehicle is to be indicated is a condition of perfection of a security interest in the vehicle and is equivalent to filing a financing statement under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994, with respect to the vehicle. When a security interest in a vehicle is perfected, it has priority over the rights of a lien creditor as lien creditor is defined in section 9102 of the uniform commercial code, 1962 PA 174, MCL 440.9102.

(11) In accordance with the secretary of state, a dealer may

provide any of the following services:

(a) In accordance with the requirements of subsection (4), a dealer may apply to the secretary of state for a new title, if required, and transfer or secure registration plates and secure a certificate of registration on behalf of the purchaser of a vehicle that was not sold by the dealer.

(b) In accordance with the requirements of section 227, a dealer may process the renewal of a vehicle registration for the owner of any vehicle.

(c) In accordance with the requirements of section 229, a dealer may process the renewal of a lost, mutilated, or illegible registration certificate, registration plate, certificate of title, or duplicate certificate of title.

(12) A dealer that provides the services described under subsection (11) may charge a service fee of not more than 10% of the total cost to the person if the service was provided by the secretary of state. The secretary of state shall not charge or collect a fee under section 801(3)(b) on a transaction completed by a dealer under subsection (11). If a service provided under subsection (11) would require the owner of the vehicle to appear in person if the service was completed at the secretary of state office, the dealer shall require the owner of the vehicle to appear in person to complete the service.

Sec. 801. (1) The secretary of state shall collect the following taxes at the time of registering a vehicle, which exempts the vehicle from all other state and local taxation, except the fees and taxes provided by law to be paid by certain carriers operating motor vehicles and trailers under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.42; the taxes imposed by the motor

carrier fuel tax act, 1980 PA 119, MCL 207.211 to 207.234; and except as otherwise provided by this act:

(a) For a motor vehicle, including a motor home, except as otherwise provided, and a pickup truck or van that weighs not more than 8,000 pounds, except as otherwise provided, according to the following schedule of empty weights:

Empty weights	Tax
0 to 3,000 pounds......................	$ 29.00
3,001 to 3,500 pounds..................	32.00
3,501 to 4,000 pounds..................	37.00
4,001 to 4,500 pounds..................	43.00
4,501 to 5,000 pounds..................	47.00
5,001 to 5,500 pounds..................	52.00
5,501 to 6,000 pounds..................	57.00
6,001 to 6,500 pounds..................	62.00
6,501 to 7,000 pounds..................	67.00
7,001 to 7,500 pounds..................	71.00
7,501 to 8,000 pounds..................	77.00
8,001 to 8,500 pounds..................	81.00
8,501 to 9,000 pounds..................	86.00
9,001 to 9,500 pounds..................	91.00
9,501 to 10,000 pounds.................	95.00
over 10,000 pounds.....................	$ 0.90 per 100 pounds
	of empty weight

On October 1, 1983 and October 1, 1984, the tax assessed under this subdivision must be annually revised for the registrations expiring on the appropriate October 1 or after that date by multiplying the tax assessed in the preceding fiscal year times the personal income of Michigan for the preceding calendar year divided

by the personal income of Michigan for the calendar year that preceded that calendar year. In performing the calculations under this subdivision, the secretary of state shall use the spring preliminary report of the United States Department of Commerce or its successor agency. A passenger motor vehicle that has been modified with a permanently installed wheelchair lift mechanism or with permanently installed hand controls and that is owned by an individual who uses a wheelchair or by an individual who transports a member of his or her household who uses a wheelchair and for which registration plates are issued under section 803d must be assessed at the rate of 50% of the tax provided for in this subdivision. As used in this subdivision, "permanently installed hand controls" means a permanently installed device designed to replace the brake and gas pedals of a motor vehicle with hand controls.

(b) For a trailer coach attached to a motor vehicle, the tax must be assessed as provided in subdivision (l). A trailer coach not under 1959 PA 243, MCL 125.1035 to 125.1043, and while located on land otherwise assessable as real property under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, if the trailer coach is used as a place of habitation, and whether or not permanently affixed to the soil, is not exempt from real property taxes.

(c) For a road tractor, modified agricultural vehicle, truck, or truck tractor owned by a farmer and used exclusively in connection with a farming operation, including a farmer hauling livestock or farm equipment for other farmers for remuneration in kind or in labor, but not for money, or used for the transportation of the farmer and the farmer's family, and not used for hire, 74

cents per 100 pounds of empty weight of the road tractor, truck, or truck tractor. If the road tractor, modified agricultural vehicle, truck, or truck tractor owned by a farmer is also used for a nonfarming operation, the farmer is subject to the highest registration tax applicable to the nonfarm use of the vehicle but is not subject to more than 1 tax rate under this act.

(d) For a road tractor, truck, or truck tractor owned by a wood harvester and used exclusively in connection with the wood harvesting operations or a truck used exclusively to haul milk from the farm to the first point of delivery, 74 cents per 100 pounds of empty weight of the road tractor, truck, or truck tractor. A registration secured by payment of the tax prescribed in this subdivision continues in full force and effect until the regular expiration date of the registration. As used in this subdivision:

(i) "Wood harvester" includes the person or persons hauling and transporting raw materials in the form produced at the harvest site or hauling and transporting wood harvesting equipment. Wood harvester does not include a person or persons whose primary activity is tree-trimming or landscaping.

(ii) "Wood harvesting equipment" includes all of the following:

(A) A vehicle that directly harvests logs or timber, including, but not limited to, a processor or a feller buncher.

(B) A vehicle that directly processes harvested logs or timber, including, but not limited to, a slasher, delimber, processor, chipper, or saw table.

(C) A vehicle that directly processes harvested logs or timber, including, but not limited to, a forwarder, grapple skidder, or cable skidder.

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

including, but not limited to, a knuckle-boom loader, front-end loader, or forklift.

(E) A bulldozer or road grader being transported to a wood harvesting site specifically for the purpose of building or maintaining harvest site roads.

(iii) "Wood harvesting operations" does not include the transportation of processed lumber, Christmas trees, or processed firewood for a profit-making venture.

(e) For a hearse or ambulance used exclusively by a licensed funeral director in the general conduct of the licensee's funeral business, including a hearse or ambulance whose owner is engaged in the business of leasing or renting the hearse or ambulance to others, $1.17 per 100 pounds of the empty weight of the hearse or ambulance.

(f) For a vehicle owned and operated by this state, a state institution, a municipality, a privately incorporated, nonprofit volunteer fire department, or a nonpublic, nonprofit college or university, $5.00 per plate. A registration plate issued under this subdivision expires on June 30 of the year in which new registration plates are reissued for all vehicles by the secretary of state.

(g) For a bus including a station wagon, carryall, or similarly constructed vehicle owned and operated by a nonprofit parents' transportation corporation used for school purposes, parochial school or society, church Sunday school, or any other grammar school, or by a nonprofit youth organization or nonprofit rehabilitation facility; or a motor vehicle owned and operated by a senior citizen center, $10.00, if the bus, station wagon, carryall, or similarly constructed vehicle or motor vehicle is designated by

proper signs showing the organization operating the vehicle.

(h) For a vehicle owned by a nonprofit organization and used to transport equipment for providing dialysis treatment to children at camp; for a vehicle owned by the Civil Air Patrol, as organized under 36 USC 40301 to 40307, $10.00 per plate, if the vehicle is designated by a proper sign showing the Civil Air Patrol's name; for a vehicle owned and operated by a nonprofit veterans center; for a vehicle owned and operated by a nonprofit recycling center or a federally recognized nonprofit conservation organization; for a motor vehicle having a truck chassis and a locomotive or ship's body that is owned by a nonprofit veterans organization and used exclusively in parades and civic events; or for an emergency support vehicle used exclusively for emergencies and owned and operated by a federally recognized nonprofit charitable organization; or for a vehicle owned and operated by a nonprofit food pantry or nonprofit food bank, $10.00 per plate.

(i) For each truck owned and operated free of charge by a bona fide ecclesiastical or charitable corporation, or Red Cross, Girl Scout, or Boy Scout organization, 65 cents per 100 pounds of the empty weight of the truck.

(j) For each truck, weighing 8,000 pounds or less, and not used to tow a vehicle, for each privately owned truck used to tow a trailer for recreational purposes only and not involved in a profit-making venture, and for each vehicle designed and used to tow a mobile home or a trailer coach, except as provided in subdivision (b), $38.00 or an amount computed according to the following schedule of empty weights, whichever is greater:

Empty weights	Per 100 pounds
0 to 2,500 pounds......................	$ 1.40

2,501 to 4,000 pounds..................	1.76
4,001 to 6,000 pounds..................	2.20
6,001 to 8,000 pounds..................	2.72
8,001 to 10,000 pounds.................	3.25
10,001 to 15,000 pounds................	3.77
15,001 pounds and over.................	4.39

If the tax required under subdivision (p) for a vehicle of the same model year with the same list price as the vehicle for which registration is sought under this subdivision is more than the tax provided under the preceding provisions of this subdivision for an identical vehicle, the tax required under this subdivision is not less than the tax required under subdivision (p) for a vehicle of the same model year with the same list price.

(k) For each truck weighing 8,000 pounds or less towing a trailer or any other combination of vehicles and for each truck weighing 8,001 pounds or more, road tractor or truck tractor, except as provided in subdivision (j), as follows:

(i) Until December 31, 2016, according to the following schedule of elected gross weights:

Elected gross weight	Tax
0 to 24,000 pounds.....................	$ 491.00
24,001 to 26,000 pounds................	558.00
26,001 to 28,000 pounds................	558.00
28,001 to 32,000 pounds................	649.00
32,001 to 36,000 pounds................	744.00
36,001 to 42,000 pounds................	874.00
42,001 to 48,000 pounds................	1,005.00
48,001 to 54,000 pounds................	1,135.00
54,001 to 60,000 pounds................	1,268.00

60,001 to 66,000 pounds................	1,398.00
66,001 to 72,000 pounds................	1,529.00
72,001 to 80,000 pounds................	1,660.00
80,001 to 90,000 pounds................	1,793.00
90,001 to 100,000 pounds...............	2,002.00
100,001 to 115,000 pounds..............	2,223.00
115,001 to 130,000 pounds..............	2,448.00
130,001 to 145,000 pounds..............	2,670.00
145,001 to 160,000 pounds..............	2,894.00
over 160,000 pounds....................	3,117.00

(ii) Beginning on January 1, 2017, according to the following schedule of elected gross weights:

Elected gross weight	Tax
0 to 24,000 pounds..........................	$ 590.00
24,001 to 26,000 pounds.....................	670.00
26,001 to 28,000 pounds.....................	670.00
28,001 to 32,000 pounds.....................	779.00
32,001 to 36,000 pounds.....................	893.00
36,001 to 42,000 pounds.....................	1,049.00
42,001 to 48,000 pounds.....................	1,206.00
48,001 to 54,000 pounds.....................	1,362.00
54,001 to 60,000 pounds.....................	1,522.00
60,001 to 66,000 pounds.....................	1,678.00
66,001 to 72,000 pounds.....................	1,835.00
72,001 to 80,000 pounds.....................	1,992.00
80,001 to 90,000 pounds.....................	2,152.00
90,001 to 100,000 pounds....................	2,403.00
100,001 to 115,000 pounds...................	2,668.00
115,001 to 130,000 pounds...................	2,938.00

130,001 to 145,000 pounds...................	3,204.00
145,001 to 160,000 pounds...................	3,473.00
over 160,000 pounds.........................	3,741.00

For each commercial vehicle registered under this subdivision or section 801g, $15.00 must be deposited in a truck safety fund to be expended as provided in section 25 of 1951 PA 51, MCL 247.675.

If a truck tractor or road tractor without trailer is leased from an individual owner-operator, the lessee, whether an individual, firm, or corporation, shall pay to the owner-operator 60% of the tax prescribed in this subdivision for the truck tractor or road tractor at the rate of 1/12 for each month of the lease or arrangement in addition to the compensation the owner-operator is entitled to for the rental of his or her equipment.

(l) For each pole trailer, semitrailer, trailer coach, or trailer, the tax must be assessed according to the following schedule of empty weights:

Empty weights	Tax
0 to 2,499 pounds...........................	$ 75.00
2,500 to 9,999 pounds.......................	200.00
10,000 pounds and over......................	300.00

The registration plate issued under this subdivision expires only when the secretary of state reissues a new registration plate for all trailers. Beginning October 1, 2005, if the secretary of state reissues a new registration plate for all trailers, a person who has once paid the tax as increased by 2003 PA 152 for a vehicle under this subdivision is not required to pay the tax for that vehicle a second time, but is required to pay only the cost of the reissued plate at the rate provided in section 804(2) for a standard plate. A registration plate issued under this subdivision

is nontransferable.

(m) For each commercial vehicle used for the transportation of passengers for hire except for a vehicle for which a payment is made under 1960 PA 2, MCL 257.971 to 257.972, according to the following schedule of empty weights:

Empty weights	Per 100 pounds
0 to 4,000 pounds..........................	$ 1.76
4,001 to 6,000 pounds......................	2.20
6,001 to 10,000 pounds.....................	2.72
10,001 pounds and over.....................	3.25

(n) For each motorcycle, as follows:

(i) Until February 18, 2019................	$ 23.00
(ii) Beginning February 19, 2019...........	$ 25.00

On October 1, 1983, and October 1, 1984, the tax assessed under this subdivision must be annually revised for the registrations expiring on the appropriate October 1 or after that date by multiplying the tax assessed in the preceding fiscal year times the personal income of Michigan for the preceding calendar year divided by the personal income of Michigan for the calendar year that preceded that calendar year. In performing the calculations under this subdivision, the secretary of state shall use the spring preliminary report of the United States Department of Commerce or its successor agency.

Beginning January 1, 1984, the registration tax for each motorcycle is increased by $3.00. The $3.00 increase is not part of the tax assessed under this subdivision for the purpose of the annual October 1 revisions but is in addition to the tax assessed as a result of the annual October 1 revisions. Beginning January 1, 1984 and ending February 18, 2019, $3.00 of each motorcycle fee

must be placed in a motorcycle safety fund in the state treasury and must be used only for funding the motorcycle safety education program as provided for under sections 312b and 811a. Beginning February 19, 2019, $5.00 of each motorcycle fee must be placed in the motorcycle safety fund and must be used only for funding the motorcycle safety education program as provided for under sections 312b and 811a.

(o) For each truck weighing 8,001 pounds or more, road tractor, or truck tractor used exclusively as a moving van or part of a moving van in transporting household furniture and household effects or the equipment or those engaged in conducting carnivals, at the rate of 80% of the schedule of elected gross weights in subdivision (k) as modified by the operation of that subdivision.

(p) After September 30, 1983, each motor vehicle of the 1984 or a subsequent model year as shown on the application required under section 217 that has not been previously subject to the tax rates of this section and that is of the motor vehicle category otherwise subject to the tax schedule described in subdivision (a), and each low-speed vehicle according to the following schedule based upon registration periods of 12 months:

(i) Except as otherwise provided in this subdivision, according to the following schedule based on the vehicle's list price:

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

List Price	Tax
$ 0 - $ 6,000.00...........................	$ 30.00
More than $ 6,000.00 - $ 7,000.00..........	$ 33.00
More than $ 7,000.00 - $ 8,000.00..........	$ 38.00
More than $ 8,000.00 - $ 9,000.00..........	$ 43.00
More than $ 9,000.00 - $ 10,000.00.........	$ 48.00

More than $ 10,000.00 - $ 11,000.00........	$ 53.00
More than $ 11,000.00 - $ 12,000.00........	$ 58.00
More than $ 12,000.00 - $ 13,000.00........	$ 63.00
More than $ 13,000.00 - $ 14,000.00........	$ 68.00
More than $ 14,000.00 - $ 15,000.00........	$ 73.00
More than $ 15,000.00 - $ 16,000.00........	$ 78.00
More than $ 16,000.00 - $ 17,000.00........	$ 83.00
More than $ 17,000.00 - $ 18,000.00........	$ 88.00
More than $ 18,000.00 - $ 19,000.00........	$ 93.00
More than $ 19,000.00 - $ 20,000.00........	$ 98.00
More than $ 20,000.00 - $ 21,000.00........	$ 103.00
More than $ 21,000.00 - $ 22,000.00........	$ 108.00
More than $ 22,000.00 - $ 23,000.00........	$ 113.00
More than $ 23,000.00 - $ 24,000.00........	$ 118.00
More than $ 24,000.00 - $ 25,000.00........	$ 123.00
More than $ 25,000.00 - $ 26,000.00........	$ 128.00
More than $ 26,000.00 - $ 27,000.00........	$ 133.00
More than $ 27,000.00 - $ 28,000.00........	$ 138.00
More than $ 28,000.00 - $ 29,000.00........	$ 143.00
More than $ 29,000.00 - $ 30,000.00........	$ 148.00

More than $30,000.00, the tax of $148.00 is increased by $5.00 for each $1,000.00 increment or fraction of a $1,000.00 increment over $30,000.00. If a current tax increases or decreases as a result of 1998 PA 384, only a vehicle purchased or transferred after January 1, 1999 must be assessed the increased or decreased tax.

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

List Price	Tax
$ 0 - $ 6,000.00...........................	$ 36.00

More than $ 6,000.00 - $ 7,000.00..........	$ 40.00
More than $ 7,000.00 - $ 8,000.00..........	$ 46.00
More than $ 8,000.00 - $ 9,000.00..........	$ 52.00
More than $ 9,000.00 - $ 10,000.00.........	$ 58.00
More than $ 10,000.00 - $ 11,000.00........	$ 64.00
More than $ 11,000.00 - $ 12,000.00........	$ 70.00
More than $ 12,000.00 - $ 13,000.00........	$ 76.00
More than $ 13,000.00 - $ 14,000.00........	$ 82.00
More than $ 14,000.00 - $ 15,000.00........	$ 88.00
More than $ 15,000.00 - $ 16,000.00........	$ 94.00
More than $ 16,000.00 - $ 17,000.00........	$ 100.00
More than $ 17,000.00 - $ 18,000.00........	$ 106.00
More than $ 18,000.00 - $ 19,000.00........	$ 112.00
More than $ 19,000.00 - $ 20,000.00........	$ 118.00
More than $ 20,000.00 - $ 21,000.00........	$ 124.00
More than $ 21,000.00 - $ 22,000.00........	$ 130.00
More than $ 22,000.00 - $ 23,000.00........	$ 136.00
More than $ 23,000.00 - $ 24,000.00........	$ 142.00
More than $ 24,000.00 - $ 25,000.00........	$ 148.00
More than $ 25,000.00 - $ 26,000.00........	$ 154.00
More than $ 26,000.00 - $ 27,000.00........	$ 160.00
More than $ 27,000.00 - $ 28,000.00........	$ 166.00
More than $ 28,000.00 - $ 29,000.00........	$ 172.00
More than $ 29,000.00 - $ 30,000.00........	$ 178.00

More than $30,000.00, the tax of $178.00 is increased by $6.00 for each $1,000.00 increment or fraction of a $1,000.00 increment over $30,000.00. If a current tax increases or decreases as a result of 1998 PA 384, only a vehicle purchased or transferred after January 1, 1999 must be assessed the increased or decreased

tax.

(ii) For the second registration, 90% of the tax assessed under subparagraph (i).

(iii) For the third registration, 90% of the tax assessed under subparagraph (ii).

(iv) For the fourth and subsequent registrations, 90% of the tax assessed under subparagraph (iii).

For a vehicle of the 1984 or a subsequent model year that has been previously registered by a person other than the person applying for registration or for a vehicle of the 1984 or a subsequent model year that has been previously registered in another state or country and is registered for the first time in this state, the tax under this subdivision is determined by subtracting the model year of the vehicle from the calendar year for which the registration is sought. If the result is zero or a negative figure, the first registration tax must be paid. If the result is 1, 2, or 3 or more, then, respectively, the second, third, or subsequent registration tax must be paid. A passenger motor vehicle that has been modified with a permanently installed wheelchair lift mechanism or with permanently installed hand controls and that is owned by an individual who uses a wheelchair or by an individual who transports a member of his or her household who uses a wheelchair and for which registration plates are issued under section 803d must be assessed at the rate of 50% of the tax provided for in this subdivision. As used in this subdivision, "permanently installed hand controls" means a permanently installed device designed to replace the brake and gas pedals of a motor vehicle with hand controls.

(q) For a wrecker, $200.00.

(r) When the secretary of state computes a tax under this act, a computation that does not result in a whole dollar figure must be rounded to the next lower whole dollar when the computation results in a figure ending in 50 cents or less and must be rounded to the next higher whole dollar if the computation results in a figure ending in 51 cents or more, unless specific taxes are specified, and the secretary of state may accept the manufacturer's shipping weight of the vehicle fully equipped for the use for which the registration application is made. If the weight is not correctly stated or is not satisfactory, the secretary of state shall determine the actual weight. Each application for registration of a vehicle under subdivisions (j) and (m) must have attached to the application a scale weight receipt of the vehicle fully equipped as of the time the application is made. The scale weight receipt is not necessary if there is presented with the application a registration receipt of the previous year that shows on its face the weight of the motor vehicle as registered with the secretary of state and that is accompanied by a statement of the applicant that there has not been a structural change in the motor vehicle that has increased the weight and that the previous registered weight is the true weight.

(2) A manufacturer is not exempted under this act from paying ad valorem taxes on vehicles in stock or bond, except on the specified number of motor vehicles registered. A dealer is exempt from paying ad valorem taxes on vehicles in stock or bond.

(3) Until October 1, 2023, the tax for a vehicle with an empty weight over 10,000 pounds imposed under subsection (1)(a) and the taxes imposed under subsection (1)(c), (d), (e), (f), (i), (j), (m), (o), and (p) are each increased as follows:

(a) A regulatory fee of $2.25 that must be credited to the traffic law enforcement and safety fund created in section 819a and used to regulate highway safety.

(b) A Except as otherwise provided in section 217, a fee of $5.75 that must be credited to the transportation administration collection fund created in section 810b.

(4) Except as otherwise provided in this subsection, if a tax required to be paid under this section is not received by the secretary of state on or before the expiration date of the registration plate, the secretary of state shall collect a late fee of $10.00 for each registration renewed after the expiration date. An application for a renewal of a registration using the regular mail and postmarked before the expiration date of that registration must not be assessed a late fee. The late fee collected under this subsection must be deposited into the general fund. The secretary of state shall waive the late fee collected under this subsection if all of the following are satisfied:

(a) The registrant presents proof of storage insurance for the vehicle for which the late fee is assessed that is valid for the period of time between the expiration date of the most recent registration and the date of application for the renewal.

(b) The registrant requests in person at a department of state branch office that the late fee be waived at the time of application for the renewal.

(5) In addition to the registration taxes under this section, the secretary of state shall collect taxes charged under section 801j and credit revenues to a regional transit authority created under the regional transit authority act, 2012 PA 387, MCL 124.541 to 124.558, minus necessary collection expenses as provided in

section 9 of article IX of the state constitution of 1963. Necessary collection expenses incurred by the secretary of state under this subsection must be based upon an established cost allocation methodology.

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

(7) Beginning January 1, 2017, the registration fee imposed under this section for a vehicle using 4 or more tires is increased as follows:

(a) If the vehicle is a plug-in hybrid electric vehicle, the registration fee for that vehicle is increased by $30.00 for a vehicle with an empty weight of 8,000 pounds or less, and $100.00 for a vehicle with an empty weight of more than 8,000 pounds. As used in this subdivision and subsection (8)(a), "plug-in hybrid electric vehicle" means a vehicle that can use batteries to power an electric motor and use another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source, and that may use electricity from the grid to run the vehicle some or all of the time.

(b) If the vehicle is an electric vehicle, the registration fee for that vehicle is increased by $100.00 for a vehicle with an empty weight of 8,000 pounds or less, and $200.00 for a vehicle with an empty weight of more than 8,000 pounds. As used in this subdivision and subsection (8)(b), "electric vehicle" means a vehicle that is propelled solely by electrical energy and that is not capable of using gasoline, diesel fuel, or alternative fuel to propel the vehicle.

(8) Beginning January 1, 2017, if the tax on gasoline imposed under section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, is increased above 19 cents per gallon, the secretary of

state shall increase the fees collected under subsection (7) as follows:

(a) For a plug-in hybrid electric vehicle, $2.50 per each 1 cent above 19 cents per gallon.

(b) For an electric vehicle, $5.00 per each 1 cent above 19 cents per gallon.

(9) As used in this section:

(a) "Alternative fuel" means that term as defined in section 151 of the motor fuel tax act, 2000 PA 403, MCL 207.1151.

(b) "Diesel fuel" means that term as defined in section 2 of the motor fuel tax act, 2000 PA 403, MCL 207.1002.

(d) "Gross proceeds" means that term as defined in section 1 of the general sales tax act, 1933 PA 167, MCL 205.51, and includes the value of the motor vehicle used as part payment of the purchase price as that value is agreed to by the parties to the sale, as evidenced by the signed agreement executed under section 251.

(e) "List price" means the manufacturer's suggested base list price as published by the secretary of state, or the manufacturer's suggested retail price as shown on the label required to be affixed to the vehicle under 15 USC 1232, if the secretary of state has not at the time of the sale of the vehicle published a manufacturer's suggested retail price for that vehicle, or the purchase price of the vehicle if the manufacturer's suggested base list price is unavailable from the sources described in this subdivision.

(f) "Purchase price" means the gross proceeds received by the seller in consideration of the sale of the motor vehicle being registered.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

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Bill Text: MI SB0585 | 2021-2022 | 101st Legislature | Introduced

Michigan Senate Bill 585 (Prior Session Legislation)

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