VT LEG #381574 v.1
S.123 –An act relating to miscellaneous changes to
laws related to motor vehicles
As introduced by the Senate Committee on Transportation
Bill Summary
he annual miscellaneous motor vehicle bill contains numerous amendments
and technical corrections to Vermont’s vehicle statutes.
Fiscal Impact
Seven sections of the bill carry a fiscal impact. In total it will reduce Transportation
Fund revenues by approximately $353,000 per year.
Sections with Fiscal Impacts
Section 5,8,9: Department of Children and Families Exemptions
Among other things, these sections contain proposals that would exempt individuals under the age of 23 years
of age who were in the custody and care of the Commissioner for Children and Families after attaining 14
years of age from the fees levied for nondriver identification cards, operator’s licenses, and learner permits.
Currently, these fees are paid for by the Department for Children and Families (DCF). DCF estimates that
they spend less than $15,000 annually on the procurement of these items. DCF also notes that the payment
of these fees represents a significant administrative burden for their staff. This section would reduce T-fund
revenues by $15,000 annually, reduce spending by DCF by the same, and eliminate their administrative burden.
Section 6: EV Infrastructure Fee Exemption
Proposes to exempt vehicles owned by the State or any municipality in the state from the EV infrastructure
fee levied under 23 V.S.A. § 361(b). It would also exempt vehicles owned by volunteer fire departments,
volunteer firefighting organizations, and organizations conducting rescue operations so long as the vehicles
are used solely for firefighting or rescue purposes and are plainly marked to indicate ownership. In fiscal year
2026, this change would reduce Transportation Fund revenues by approximately $29,000. This revenue
reduction will likely grow in relation to the adoption rate of EVs in State, municipal, and volunteer fleets, JFO
cannot, at this time, model this adoption rate.
Section 7: Veterans’ Exemption
Proposes to expand the existing registration fee exemption granted to veterans who own a vehicle that was
acquired with financial assistance from the U.S. Department of Veterans Affairs to include the annual
emissions fee and the EV infrastructure fee. To qualify, an individual’s registration application would need
to be accompanied by a copy of an approved VA Form 21-4502. The fiscal impact associated with this
section is estimated to be de minimis.
T
The bill is
estimated to
reduce
Transportation
Fund revenues
by $353,000
annually.
March 18, 2025 Logan Mooberry, Fiscal Analyst 2
VT LEG #381574 v.1
Section 8: SSI and SSDI Fee Reduction
Proposes to provide individuals receiving Supplemental Security Income (SSI), Social Security Disability
Income (SSDI), or individuals with a disability as defined in 9 V.S.A. § 4501 with discounted fees for an
operator’s license or privilege card. The current fee is $39 for a two-year card or $62 for a four-year card.
Both cards have a replacement fee of $24. This section would reduce the issuing fee to $20, the renewal fee
(every four years) to $20, and the replacement fee to $10.
Operators’ licenses Current Fee Proposed Fee
2-year card $39 Unavailable
4-year card $62 $20
Replacement $24 $10
In 2024 approximately 5.4% of Vermont residents received SSI or SSDI. Keeping all other variables
consistent, the proposed fee reduction would result in a $309,000 decrease in Transportation Fund revenue
annually. This analysis assumes that all qualifying individuals utilize the proposed fee reduction, and all other
variables remain consistent.
Section 9: Replacement Motorcycle Learners’ Permits
Among other things, this section proposes to allow individuals using a MyDMV electronic account to generate
a replacement learner’s permit for the operation of a motorcycle at no charge. The current replacement fee,
under 23 V.S.A. § 617, is $24. The fiscal impact associated with this section is estimated to be de minimis.
Section 12: License Examinations Waiver
23 V.S.A. § 632 grants the Commissioner of Motor Vehicles the ability to waive the examination requirement
for obtaining an operator’s or junior operator’s license when the applicant holds a chauffeur or operator’s
license in force at the time of application or within three years prior to the application in some other
jurisdiction where an examination is required similar to the examination required in this State. Section 12
would allow the Commissioner to extend the examination requirement waiver to those holding or who held
within three years prior to an application a junior operator’s license. This could exempt some additional
individuals from the examination fee levied under 23 V.S.A. § 634. The fiscal impact associated with this
section is estimated to be de minimis.
Section 13: Examination Scheduling Fee Elimination
Proposes to eliminate the $29 fee levied under 23 V.S.A. § 634(b) for scheduling a road test. If the applicant
appears for the scheduled road test the fee is applied towards the license examination fee. If an applicant does
not appear as scheduled, unless they have given the Department of Motor Vehicles (DMV) at least 48 hours’
notice of cancellation, the scheduling fee is forfeited. The Commissioner may waive the scheduling fee until
the DMV is capable of administering the fee electronically. At this time DMV is not collecting a scheduling
fee for road tests. As such, the fiscal impact associated with this section is $0. It is worth noting that DMV
estimates that roughly 4,000 appointment holders choose not to attend their scheduled appointments annually.
If DMV were to start collecting this fee, estimated revenue generation from forfeited fees would be roughly
$116,000 annually.
Section 43: Study Committee
Proposes to create the Used Motor Vehicle Tax and Inspections Study Committee to examine the assessment
of purchase and use tax on used motor vehicles and the inspection of motor vehicles whose onboard
diagnostics malfunction indicator light is on. This committee will have 4 members, the Commissioner of the
DMV and 3 individuals from select members of the public. This committee will have assistance from the
Department of Motor Vehicles. Compensation and reimbursement will be provided to members of the
committee for not more than four meetings. Committee members will be paid from monies appropriated to
the Department of Motor Vehicles. The fiscal impact of this section is estimated to be de minimis.