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State of Mich. NEW vehicle fee's started

862 Views 11 Replies 9 Participants Last post by  Capt'n Mike
Michigan Registration Fees

New unknown laws, please read!

I just received this from a friend


New Fees Target Michigan Drivers

FOR IMMEDIATE RELEASE: September 30, 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.

See below for a list of the fee increases and how much money will be extracted from motorists for state purposes.

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.
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
$132.9 million in Fiscal 2004
Approximately $24.9 million/year after 2004
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Also heard on the radio last night that they changed the license's of those under 21 to read vertically instead of horizontally
I've been discussing this one for all day.

I think this email that is going around is incorrect.

The tags do not expire at the beginning of the month. They expire on your birthday. So as long as you renew by your birthday, you will not incur the late fee.
AND..the Secretary of State will no longer pro-rate your renewal fees when you go to renew them. For instance, my tags on both cars are due (birthday nov 20), since I'm putting the vette in storage, I'm not renewing those tags. When I get it out in April, normally I would only have to pay a pro-rated rate from April to nov 20 - not any more. Get slapped with the whole fees even though the car has not on the road.
B-day is in dec went to pick up the plates last thurs. gave michigan $722 for the privilage to drive on these fine roads
($200 of it was for the car trailer...but thats just a one time hit..lucky me)

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And I don`t know about anyone else but I used to get a 6 month plate for the boat
trailer for 12 bucks...... NO MORE!!!!

Now you have to buy a permenant.. non-transferable plate for 75 bucks

That`s bulshiot!!!!!
I trailer my boat about 15 miles twice a year...
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QUOTE(RED HOT ONE @ Nov 5 2003, 02:46 PM)And I don`t know about anyone else but I used to get a 6 month plate for the boat
trailer for 12 bucks...... NO MORE!!!!

Now you have to buy a permenant.. non-transferable plate for 75 bucks

That`s bulshiot!!!!!
I trailer my boat about 15 miles twice a year...
But now its good for as long as you have it, isn't that wonderful????
you don't have to go to the bothersome sec state for that pesky tage anymore

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I think it's bull$hit too. Purely a making making venture by the Secretary of State. Most of my fellow officers feel the same way too. Don't worry though, until they legalize ticket quotas (which will never happen) and actually make us go out and write X number of tickets most of us won't be any more vigilant than usual..

If you'll take notice how they plan on hammering suspended drivers with additional fees just to get and keep their license then you'll understand why the state will just be totally inundated with suspended drivers who flat out refuse to pay the fees to get their licenses back. And I certainly can't blame them. It will totally tie us up handling chicken$hit traffic arrests when we could be out doing bigger and better things....
I agree with Red Hot One about the trailer plate. Not happy about the change.
I got hit with the late fee because I didn't bother to read the insert in the envelope.
I really had no reason to run down and renew because I used to get a 6 month plate.
Now in the spring when I buy my new boat and the trailer goes with the old boat, who gets the plate? Do I keep it for my new trailer if I get one or does it go with the trailer?
I could add the $75 on the price of the boat but if I trade it in I'm screwed.

I guess it's all good in the end......

whoa.... that's jacked up... BUT thanks for educating us!
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Okay, okay, Capt Mike asked for a follow up on the part about the renewal of tags. I just called the Sec. of State office on Van **** in Sterling Hgts and was told the following:

Plate tages and Driver's license's STILL EXPIRE ON YOUR BIRTHDAY. There is a $10.00 late fee per tag if it is done AFTER your birthday.

Everything else is pretty much as stated, although we did not go through the list. Tammy, at the SOS office, was very adiment on what she would do if she ever found the person who added the first part to the email.

If you reread the email though, it does make sense though:

Just to WARN everyone....I got caught by the $10.00 tag renewal on 3 vehicles. I went into the DMV on the 14th of Oct, after that Friday payday of 10/10/03 to renew my tags. The Clerk handed me a little Xerox slip of paper that told me since I didn't renew the tags on or before the 1st of Oct....I was being charged $10.00 per tag late fees.
How much do you want to bet that the a$$hole who wrote that has his/her birthday on Oct. 1 and was just plain old LATE in renewing.

ANyway, Capt Mike, there is your confirmation. Straight from the horses mouth, or Sec. of State in this case. I have edited the original posting and deleted this part of the email. Hopefully all that remains is factual.
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Thanks for the clarification, Jim. I won't tell anyone that you just called the Secretary of the State a horse, either.

Firecracker also sent me some updated info. Here's a couple links to go to if there are any more questions;

To locate more information on the new fees, please visit:,1607,7-127-1...75432--,00.html

The Driver Responsibility fees may be located at:
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