Michigan House Bill HB6181

Michigan 2023-2024 Regular Session

• Introduced: 11/26/24
• Refer: 11/26/24

Caption

Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends sec. 806 of 1949 PA 300 (MCL 257.806). TIE BAR WITH: HB 5354'23

Impact

One notable aspect of this bill is the introduction of a tire disposal surcharge of $1.50 for each certificate of title issued until December 31, 2027. The revenue generated from this surcharge is earmarked for the scrap tire regulatory fund, which reflects the bill's goal to address waste management in relation to vehicle registration. Furthermore, starting in 2026, a $5.00 fee for title transfers conducted by dealers is established, allowing for periodic adjustments to this fee to align with the operational costs of administering the motor vehicle sales finance act. This provision aims at ensuring that the funding is reflective of the actual administrative needs over time.

Summary

House Bill 6181 aims to amend the Michigan Vehicle Code by updating the provisions related to the fees associated with vehicle title applications. Specifically, the bill establishes a fee structure that includes a $10.00 fee for obtaining a certificate of title or a duplicate title, along with a $5.00 fee for expedited processing. It additionally imposes a service fee of $3.00 for each title issued, which is to be deposited into the transportation administration collection fund until October 2027. The bill sets these parameters until October 1, 2027, to evaluate the impact and effectiveness of the fee changes.

Contention

The bill does face potential contention points among stakeholders. For instance, while supporters may argue that these fees are necessary to support the administration of vehicle registration and environmental efforts through tire disposal funding, opponents may raise concerns about the financial burden these fees could place on vehicle owners and dealers. Additionally, the enforceability of these adjustments and their transparency may lead to discussions about fairness and administration efficiency in the long term. The tie-bar relation to House Bill 5354 indicates that these discussions may be part of a broader legislative strategy, with possible implications depending on the outcome of that bill.