Newsletter

November 10, 2003

Michigan Motorist Tax, Fine, and Fee Increases, 2003

Vehicle Fee Increases - Senate Bill 554, Public Act 152 of 2003

Make trailer plates permanent at roughly the former price of 5 to 7 years' registration
Increase all vehicle registrations by $3, unconstitutionally award $2.25 to State Police.
Add late registration-renewal fee of $10.
Raise vehicle title fees by $3.
Raise auto dealer-license fees from $10 to $75.
Raise used-parts dealer-license fees from $100 to $160.
Raise CDL fee from $20 to $25.
Raise CDL correction fee from $6 to $18.
Raise original chauffeur's license from $20 to $35.
Raise original driver's license from $12 to $25.
Raise license renewal fee from $12 to $18.
Add license-renewal late fee of $7.
Raise minor's restricted license from $5 to $25.
Raise fees for duplicate licenses by $6.

Total revenue increase: $70.1 million/year.
Dispositions:
Michigan State Police $21.8 million/year
Secretary of State $18 million/year
Roads and transit $5.3 million/year
General Fund $25 million/year

After shifts of funds between the Secretary of State and the Michigan Transportation Fund under SB 539, road and transit funds are increased by approximately $24.9 million/year.

One-time advance from trailer registration fees (conversion to permanent registrations).
Revenue: $108 million in 2004.
Disposition: Roads and transit


Points Tax - Senate Bill 509, Public Act 165 of 2003

Attach tax to driver-license points, $100 for the seventh point and $50 each for additional points. Notes: points remain on license for two years. Points existing on Sept. 30, 2003 are not taxable.

Attach mandatory fines of $150 to $1,000 for certain traffic violations (not subject to points tax), payable as surtaxes on driver's-license fees in EACH of TWO years following conviction.

Official revenue estimate: Approx. $65 to 75 million/year realized on billings of $124.7 million (shrinkage is due to drivers refusing to pay and continuing to drive with suspended licenses, based on rates from New Jersey). Note: House Fiscal Agency estimates and all published media reports on P.A. 165 contain the same error: the mandatory fines are described as being imposed once only, and not in each of TWO years, so these revenue estimates are low.

Disposition: First $65 million/year to the General Fund, additional amounts for local fire departments in cities having state-owned buildings.

SB 436 & 439, HB 4736 P.A's. 73 & 97 of 2003 - Court- finance Package

Increase conviction surtax from $25 to $40 on approximately 500,000 citations/year.
Revenue increase: $7.5 million/year
Disposition: Court operations.


HB 4333, P.A. 34 of 2003 - Handicapped Parking Spaces

Raise fine for violation of handicapped parking spaces from $50 to $150.

TOTAL MOTORIST TAX INCREASE: $147.6 million/year
AMOUNTS FOR ROADS AND TRANSIT:
$132.9 million in Fiscal 2004
Approximately $24.9 million/year after 2004

Thanks for visiting!
Jim Hanus
www.AllAboutRichmond.com
email: list@allaboutrichmond.com