November 10, 2003

New Fees Target Michigan Drivers

On October 1, new fees, fines and surcharges aimed at generating more revenue, at the expense of Michigan motorists, goes into effect. Most drivers don't realize the full extent of the penalties coming their way.

Public Act 165 has instituted new "Driver Responsibility Fees" which amounts to raised fines and surcharges on traffic tickets. If you have seven points on your drivers license, you will be paying $100 each year for two years. And, you will be paying an additional $50 per point for every point above seven. If you're stopped and you can't present proof of insurance, you
must pay a $300 fine, even if you later prove you do have insurance.

If you receive an Operating Under the Influence of Liquor (OUIL), not only do you have to pay your fine, a new $40 surtax, and license reinstatement fee, but you will also be getting a $1,000 bill each year for the next two years (courtesy of Governor Granholm and Senator Gilbert).

This additional money will go to local governments and police, county sheriffs, the State Police, the state General Fund and local fire departments. This sets a dangerous precedent, as the agencies that issue tickets will directly profit from them.

"Guaranteeing police a share of motorist fines will lead to further fine increases down the road," says Eric Skrum of the National Motorists Association. "It creates a vested interest effect: more police revenue equals more patrols, which equals more tickets, which equals more revenue. The state legislature and city governments are sure to put pressure on police agencies to issue more tickets."

There will be serious unintended consequences. More tickets will make more motorists subject to the points tax. As more drivers face annual fees of several hundred dollars to keep their licenses, the poorest will respond by not paying the fees. "The legislature rammed this through without investigating the impacts," says Skrum. The points tax was borrowed from New Jersey, but NMA reports that "In New Jersey, they call this program 'Debtor's Prison.' Poor drivers try driving without a license, incur an even larger surcharge when they get caught, and go so far in debt to the state they can never get a driver's license again. This prevents them from holding a job, and effectively takes them out of the economy." An increase in unlicensed, unregistered, and uninsured drivers is the probable outcome. The state cynically estimates that only a little over half of the points taxes will ever be paid; the rest will be owed by persons unable to pay and who will never be able to renew their licenses.

A list of the fee increases and how much money will be extracted from motorists for state purposes will follow.

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