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
