HOUSE BILL No. 4829

 

June 12, 2013, Introduced by Reps. Johnson and Durhal and referred to the Committee on Transportation and Infrastructure.

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 801 (MCL 257.801), as amended by 2012 PA 498.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 801. (1) The secretary of state shall collect the

 

 2  following taxes at the time of registering a vehicle, which shall

 

 3  exempt the vehicle from all other state and local taxation,

 

 4  except the fees and taxes provided by law to be paid by certain

 

 5  carriers operating motor vehicles and trailers under the motor

 

 6  carrier act, 1933 PA 254, MCL 475.1 to 479.43; the taxes imposed

 

 7  by the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to

 

 8  207.234; and except as otherwise provided by this act:

 

 9        (a) For a motor vehicle, including a motor home, except as

 


 1  otherwise provided, and a pickup truck or van that weighs not

 

 2  more than 8,000 pounds, except as otherwise provided, according

 

 3  to the following schedule of empty weights:

 

 

     Empty weights                                          Tax

     0 to 3,000 pounds..................................$   29.00

     3,001 to 3,500 pounds..............................    32.00

     3,501 to 4,000 pounds..............................    37.00

     4,001 to 4,500 pounds..............................    43.00

     4,501 to 5,000 pounds..............................    47.00

10      5,001 to 5,500 pounds..............................    52.00

11      5,501 to 6,000 pounds..............................    57.00

12      6,001 to 6,500 pounds..............................    62.00

13      6,501 to 7,000 pounds..............................    67.00

14      7,001 to 7,500 pounds..............................    71.00

15      7,501 to 8,000 pounds..............................    77.00

16      8,001 to 8,500 pounds..............................    81.00

17      8,501 to 9,000 pounds..............................    86.00

18      9,001 to 9,500 pounds..............................    91.00

19      9,501 to 10,000 pounds.............................    95.00

20      over 10,000 pounds.....................$ 0.90 per 100 pounds

21                                                   of empty weight

 

 

22        On October 1, 1983, and October 1, 1984, the tax assessed

 

23  under this subdivision shall be annually revised for the

 

24  registrations expiring on the appropriate October 1 or after that

 

25  date by multiplying the tax assessed in the preceding fiscal year

 

26  times the personal income of Michigan for the preceding calendar

 

27  year divided by the personal income of Michigan for the calendar

 

28  year that preceded that calendar year. In performing the

 


 1  calculations under this subdivision, the secretary of state shall

 

 2  use the spring preliminary report of the United States department

 

 3  of commerce or its successor agency. A van that is owned by an

 

 4  individual who uses a wheelchair or by an individual who

 

 5  transports a member of his or her household who uses a wheelchair

 

 6  and for which registration plates are issued under section 803d

 

 7  shall be assessed at the rate of 50% of the tax provided for in

 

 8  this subdivision.

 

 9        (b) For a trailer coach attached to a motor vehicle, the tax

 

10  shall be assessed as provided in subdivision (l). A trailer coach

 

11  that is not subject to taxation under 1959 PA 243, MCL 125.1035

 

12  to 125.1043, and while located on land otherwise assessable as

 

13  real property under the general property tax act, 1893 PA 206,

 

14  MCL 211.1 to 211.155, if the trailer coach is used as a place of

 

15  habitation, and whether or not permanently affixed to the soil,

 

16  is not exempt from real property taxes if the trailer coach is

 

17  used as a place of habitation, whether or not it is permanently

 

18  affixed to the soil.

 

19        (c) For a road tractor, modified agricultural vehicle,

 

20  truck, or truck tractor owned by a farmer and used exclusively in

 

21  connection with a farming operation, including a farmer hauling

 

22  livestock or farm equipment for other farmers for remuneration in

 

23  kind or in labor, but not for money, or used for the

 

24  transportation of the farmer and the farmer's family, and not

 

25  used for hire, 74 cents per 100 pounds of empty weight of the

 

26  road tractor, truck, or truck tractor. If the road tractor,

 

27  modified agricultural vehicle, truck, or truck tractor owned by a

 


 1  farmer is also used for a nonfarming operation, the farmer is

 

 2  subject to the highest registration tax applicable to the nonfarm

 

 3  use of the vehicle but is not subject to more than 1 tax rate

 

 4  under this act.

 

 5        (d) For a road tractor, truck, or truck tractor owned by a

 

 6  wood harvester and used exclusively in connection with the wood

 

 7  harvesting operations or a truck used exclusively to haul milk

 

 8  from the farm to the first point of delivery, 74 cents per 100

 

 9  pounds of empty weight of the road tractor, truck, or truck

 

10  tractor. A registration secured by payment of the tax prescribed

 

11  in this subdivision continues in full force and effect until the

 

12  regular expiration date of the registration. As used in this

 

13  subdivision:

 

14        (i) "Wood harvester" includes the person or persons hauling

 

15  and transporting raw materials in the form produced at the

 

16  harvest site or hauling and transporting wood harvesting

 

17  equipment. Wood harvester does not include a person or persons

 

18  whose primary activity is tree-trimming or landscaping.

 

19        (ii) "Wood harvesting equipment" includes all of the

 

20  following:

 

21        (A) A vehicle that directly harvests logs or timber,

 

22  including, but not limited to, a processor or a feller buncher.

 

23        (B) A vehicle that directly processes harvested logs or

 

24  timber, including, but not limited to, a slasher, delimber,

 

25  processor, chipper, or saw table.

 

26        (C) A vehicle that directly processes harvested logs or

 

27  timber, including, but not limited to, a forwarder, grapple

 


 1  skidder, or cable skidder.

 

 2        (D) A vehicle that directly loads harvested logs or timber,

 

 3  including, but not limited to, a knuckle-boom loader, front-end

 

 4  loader, or forklift.

 

 5        (E) A bulldozer or road grader being transported to a wood

 

 6  harvesting site specifically for the purpose of building or

 

 7  maintaining harvest site roads.

 

 8        (iii) "Wood harvesting operations" does not include the

 

 9  transportation of processed lumber, Christmas trees, or processed

 

10  firewood for a profit making venture.

 

11        (e) For a hearse or ambulance used exclusively by a licensed

 

12  funeral director in the general conduct of the licensee's funeral

 

13  business, including a hearse or ambulance whose owner is engaged

 

14  in the business of leasing or renting the hearse or ambulance to

 

15  others, $1.17 per 100 pounds of the empty weight of the hearse or

 

16  ambulance.

 

17        (f) For a vehicle owned and operated by this state, a state

 

18  institution, a municipality, a privately incorporated, nonprofit

 

19  volunteer fire department, or a nonpublic, nonprofit college or

 

20  university, $5.00 per plate. A registration plate issued under

 

21  this subdivision expires on June 30 of the year in which new

 

22  registration plates are reissued for all vehicles by the

 

23  secretary of state.

 

24        (g) For a bus including a station wagon, carryall, or

 

25  similarly constructed vehicle owned and operated by a nonprofit

 

26  parents' transportation corporation used for school purposes,

 

27  parochial school or society, church Sunday school, or any other

 


 1  grammar school, or by a nonprofit youth organization or nonprofit

 

 2  rehabilitation facility; or a motor vehicle owned and operated by

 

 3  a senior citizen center, $10.00, if the bus, station wagon,

 

 4  carryall, or similarly constructed vehicle or motor vehicle is

 

 5  designated by proper signs showing the organization operating the

 

 6  vehicle.

 

 7        (h) For a vehicle owned by a nonprofit organization and used

 

 8  to transport equipment for providing dialysis treatment to

 

 9  children at camp; for a vehicle owned by a fraternal organization

 

10  and used to transport children to and from hospitals for the

 

11  purpose of medical treatment; for a vehicle owned by the civil

 

12  air patrol, as organized under 36 USC 40301 to 40307, $10.00 per

 

13  plate, if the vehicle is designated by a proper sign showing the

 

14  civil air patrol's name; for a vehicle owned and operated by a

 

15  nonprofit veterans center; for a vehicle owned and operated by a

 

16  nonprofit recycling center or a federally recognized nonprofit

 

17  conservation organization; for a motor vehicle having a truck

 

18  chassis and a locomotive or ship's body that is owned by a

 

19  nonprofit veterans organization and used exclusively in parades

 

20  and civic events; or for an emergency support vehicle used

 

21  exclusively for emergencies and owned and operated by a federally

 

22  recognized nonprofit charitable organization, $10.00 per plate.

 

23        (i) For each truck owned and operated free of charge by a

 

24  bona fide ecclesiastical or charitable corporation, or red cross,

 

25  girl scout, or boy scout organization, 65 cents per 100 pounds of

 

26  the empty weight of the truck.

 

27        (j) For each truck , weighing 8,000 pounds or less, and not

 


 1  used to tow a vehicle, for each privately owned truck used to tow

 

 2  a trailer for recreational purposes only and not involved in a

 

 3  profit making venture, and for each vehicle designed and used to

 

 4  tow a mobile home or a trailer coach, except as provided in

 

 5  subdivision (b), $38.00 or an amount computed according to the

 

 6  following schedule of empty weights, whichever is greater:

 

 

     Empty weights                               Per 100 pounds

     0 to 2,500 pounds..............................  $     1.40

     2,501 to 4,000 pounds..........................        1.76

10      4,001 to 6,000 pounds..........................        2.20

11      6,001 to 8,000 pounds..........................        2.72

12      8,001 to 10,000 pounds.........................        3.25

13      10,001 to 15,000 pounds........................        3.77

14      15,001 pounds and over.........................        4.39

 

 

15        If the tax required under subdivision (p) for a vehicle of

 

16  the same model year with the same list price as the vehicle for

 

17  which registration is sought under this subdivision is more than

 

18  the tax provided under the preceding provisions of this

 

19  subdivision for an identical vehicle, the tax required under this

 

20  subdivision is not less than the tax required under subdivision

 

21  (p) for a vehicle of the same model year with the same list

 

22  price.

 

23        (k) For each a truck weighing 8,000 pounds or less towing a

 

24  trailer or any other combination of vehicles and for each a truck

 

25  weighing 8,001 pounds or more, road tractor or truck tractor,

 

26  except as provided in subdivision (j) according to the following

 

27  schedule of elected gross weights:


 

 

     Elected gross weight                                    Tax

     0 to 24,000 pounds..............................  $    491.00

     24,001 to 26,000 pounds.........................       558.00

     26,001 to 28,000 pounds.........................       558.00

     28,001 to 32,000 pounds.........................       649.00

     32,001 to 36,000 pounds.........................       744.00

     36,001 to 42,000 pounds.........................       874.00

     42,001 to 48,000 pounds.........................     1,005.00

     48,001 to 54,000 pounds.........................     1,135.00

10      54,001 to 60,000 pounds.........................     1,268.00

11      60,001 to 66,000 pounds.........................     1,398.00

12      66,001 to 72,000 pounds.........................     1,529.00

13      72,001 to 80,000 pounds.........................     1,660.00

14      80,001 to 90,000 pounds.........................     1,793.00

15      90,001 to 100,000 pounds........................     2,002.00

16      100,001 to 115,000 pounds.......................     2,223.00

17      115,001 to 130,000 pounds.......................     2,448.00

18      130,001 to 145,000 pounds.......................     2,670.00

19      145,001 to 160,000 pounds.......................     2,894.00

20      over 160,000 pounds.............................     3,117.00

 

 

21        For each commercial vehicle registered under this

 

22  subdivision, $15.00 shall be deposited in a truck safety fund to

 

23  be expended for the purposes prescribed in section 25 of 1951 PA

 

24  51, MCL 247.675.

 

25        If a truck tractor or road tractor without trailer is leased

 

26  from an individual owner-operator, the lessee, whether a person,

 

27  an individual, firm, or corporation, shall pay to the owner-

 

28  operator 60% of the tax prescribed in this subdivision for the


 

 1  truck tractor or road tractor at the rate of 1/12 for each month

 

 2  of the lease or arrangement in addition to the compensation the

 

 3  owner-operator is entitled to for the rental of his or her

 

 4  equipment.

 

 5        (l) For each pole trailer, semitrailer, trailer coach, or

 

 6  trailer, the tax shall be assessed according to the following

 

 7  schedule of empty weights:

 

 

     Empty weights                                           Tax

     0 to 2,499 pounds................................   $   75.00

10      2,500 to 9,999 pounds............................      200.00

11      10,000 pounds and over...........................      300.00

 

 

12        The registration plate issued under this subdivision expires

 

13  only when the secretary of state reissues a new registration

 

14  plate for all trailers. Beginning October 1, 2005, if the

 

15  secretary of state reissues a new registration plate for all

 

16  trailers, a person who has once paid the tax as increased by 2003

 

17  PA 152 for a vehicle under this subdivision is not required to

 

18  pay the tax for that vehicle a second time, but is required to

 

19  pay only the cost of the reissued plate at the rate provided in

 

20  section 804(2) for a standard plate. A registration plate issued

 

21  under this subdivision is nontransferable.

 

22        (m) For each commercial vehicle used for the transportation

 

23  of passengers for hire except for a vehicle for which a payment

 

24  is made under 1960 PA 2, MCL 257.971 to 257.972, according to the

 

25  following schedule of empty weights:

 

 


     Empty weights                                  Per 100 pounds

     0 to 4,000 pounds.............................. $      1.76

     4,001 to 6,000 pounds..........................        2.20

     6,001 to 10,000 pounds.........................        2.72

     10,001 pounds and over.........................        3.25

 

 

 6        (n) For each motorcycle, $23.00.

 

 7        On October 1, 1983, and October 1, 1984, the tax assessed

 

 8  under this subdivision shall be annually revised for the

 

 9  registrations expiring on the appropriate October 1 or after that

 

10  date by multiplying the tax assessed in the preceding fiscal year

 

11  times the personal income of Michigan for the preceding calendar

 

12  year divided by the personal income of Michigan for the calendar

 

13  year that preceded that calendar year. In performing the

 

14  calculations under this subdivision, the secretary of state shall

 

15  use the spring preliminary report of the United States department

 

16  of commerce or its successor agency.

 

17        Beginning January 1, 1984, the registration tax for each

 

18  motorcycle is increased by $3.00. The $3.00 increase is not part

 

19  of the tax assessed under this subdivision for the purpose of the

 

20  annual October 1 revisions but is in addition to the tax assessed

 

21  as a result of the annual October 1 revisions. Beginning January

 

22  1, 1984, $3.00 of each motorcycle fee shall be placed in a

 

23  motorcycle safety fund in the state treasury and shall be used

 

24  only for funding the motorcycle safety education program as

 

25  provided for under sections 312b and 811a.

 

26        (o) For each truck weighing 8,001 pounds or more, road

 

27  tractor, or truck tractor used exclusively as a moving van or


 

 1  part of a moving van in transporting household furniture and

 

 2  household effects or the equipment or those engaged in conducting

 

 3  carnivals, at the rate of 80% of the schedule of elected gross

 

 4  weights in subdivision (k). as modified by the operation of that

 

 5  subdivision.

 

 6        (p) After September 30, 1983, each motor vehicle of the 1984

 

 7  or a subsequent model year as shown on the application required

 

 8  under section 217 that has not been previously subject to the tax

 

 9  rates of this section and that is of the motor vehicle category

 

10  otherwise subject to the tax schedule described in subdivision

 

11  (a), and each low-speed vehicle according to the following

 

12  schedule based upon registration periods of 12 months:

 

13        (i) Except as otherwise provided in this subdivision, for the

 

14  first registration that is not a transfer registration under

 

15  section 809 and for the first registration after a transfer

 

16  registration under section 809, according to the following

 

17  schedule based on the vehicle's list price:

 

 

18      List Price                                               Tax

19      $ 0 - $ 6,000.00................................    $    30.00

20      More than $ 6,000.00 - $ 7,000.00...............    $    33.00

21      More than $ 7,000.00 - $ 8,000.00...............    $    38.00

22      More than $ 8,000.00 - $ 9,000.00...............    $    43.00

23      More than $ 9,000.00 - $ 10,000.00..............    $    48.00

24      More than $ 10,000.00 - $ 11,000.00.............    $    53.00

25      More than $ 11,000.00 - $ 12,000.00.............    $    58.00

26      More than $ 12,000.00 - $ 13,000.00.............    $    63.00

27      More than $ 13,000.00 - $ 14,000.00.............    $    68.00


     More than $ 14,000.00 - $ 15,000.00.............    $    73.00

     More than $ 15,000.00 - $ 16,000.00.............    $    78.00

     More than $ 16,000.00 - $ 17,000.00.............    $    83.00

     More than $ 17,000.00 - $ 18,000.00.............    $    88.00

     More than $ 18,000.00 - $ 19,000.00.............    $    93.00

     More than $ 19,000.00 - $ 20,000.00.............    $    98.00

     More than $ 20,000.00 - $ 21,000.00.............    $   103.00

     More than $ 21,000.00 - $ 22,000.00.............    $   108.00

     More than $ 22,000.00 - $ 23,000.00.............    $   113.00

10      More than $ 23,000.00 - $ 24,000.00.............    $   118.00

11      More than $ 24,000.00 - $ 25,000.00.............    $   123.00

12      More than $ 25,000.00 - $ 26,000.00.............    $   128.00

13      More than $ 26,000.00 - $ 27,000.00.............    $   133.00

14      More than $ 27,000.00 - $ 28,000.00.............    $   138.00

15      More than $ 28,000.00 - $ 29,000.00.............    $   143.00

16      More than $ 29,000.00 - $ 30,000.00.............    $   148.00

 

 

17        More than $30,000.00, the tax of $148.00 is increased by

 

18  $5.00 for each $1,000.00 increment or fraction of a $1,000.00

 

19  increment over $30,000.00. If a current tax increases or

 

20  decreases as a result of 1998 PA 384, only a vehicle purchased or

 

21  transferred after January 1, 1999 shall be assessed the increased

 

22  or decreased tax.

 

23        (ii) For the second registration, 90% of the tax assessed

 

24  under subparagraph (i).

 

25        (iii) For the third registration, 90% of the tax assessed

 

26  under subparagraph (ii).

 

27        (iv) For the fourth and subsequent registrations, 90% of the

 

28  tax assessed under subparagraph (iii).

 


 1        For a vehicle of the 1984 or a subsequent model year that

 

 2  has been previously registered by a person other than the person

 

 3  applying for registration or for a vehicle of the 1984 or a

 

 4  subsequent model year that has been previously registered in

 

 5  another state or country and is registered for the first time in

 

 6  this state, the tax under this subdivision shall be determined by

 

 7  subtracting the model year of the vehicle from the calendar year

 

 8  for which the registration is sought. If the result is zero or a

 

 9  negative figure, the first registration tax shall be paid. If the

 

10  result is 1, 2, or 3 or more, then, respectively, the second,

 

11  third, or subsequent registration tax shall be paid. A van that

 

12  is owned by an individual who uses a wheelchair or by an

 

13  individual who transports a member of his or her household who

 

14  uses a wheelchair and for which registration plates are issued

 

15  under section 803d shall be assessed at the rate of 50% of the

 

16  tax provided for in this subdivision.

 

17        (q) For a wrecker, $200.00.

 

18        (r) When the secretary of state computes a tax under this

 

19  act, a computation that does not result in a whole dollar figure

 

20  shall be rounded to the next lower whole dollar when the

 

21  computation results in a figure ending in 50 cents or less and

 

22  shall be rounded to the next higher whole dollar when the

 

23  computation results in a figure ending in 51 cents or more,

 

24  unless specific taxes are specified, and the secretary of state

 

25  may accept the manufacturer's shipping weight of the vehicle

 

26  fully equipped for the use for which the registration application

 

27  is made. If the weight is not correctly stated or is not

 


 1  satisfactory, the secretary of state shall determine the actual

 

 2  weight. Each application for registration of a vehicle under

 

 3  subdivisions (j) and (m) shall have attached to the application a

 

 4  scale weight receipt of the vehicle fully equipped as of the time

 

 5  the application is made. The scale weight receipt is not

 

 6  necessary if there is presented with the application a

 

 7  registration receipt of the previous year that shows on its face

 

 8  the weight of the motor vehicle as registered with the secretary

 

 9  of state and that is accompanied by a statement of the applicant

 

10  that there has not been a structural change in the motor vehicle

 

11  that has increased the weight and that the previous registered

 

12  weight is the true weight.

 

13        (2) A manufacturer is not exempted exempt under this act

 

14  from paying ad valorem taxes on vehicles in stock or bond, except

 

15  on the specified number of motor vehicles registered. A dealer is

 

16  exempt from paying ad valorem taxes on vehicles in stock or bond.

 

17        (3) Until October 1, 2015, the tax for a vehicle with an

 

18  empty weight over 10,000 pounds imposed under subsection (1)(a)

 

19  and the taxes imposed under subsection (1)(c), (d), (e), (f),

 

20  (i), (j), (m), (o), and (p) are each increased as follows:

 

21        (a) A regulatory fee of $2.25 that shall be credited to the

 

22  traffic law enforcement and safety fund created in section 819a

 

23  and used to regulate highway safety.

 

24        (b) A fee of $5.75 that shall be credited to the

 

25  transportation administration collection fund created in section

 

26  810b.

 

27        (4) If a tax required to be paid under this section is not

 


 1  received by the secretary of state on or before the expiration

 

 2  date of the registration plate, the secretary of state shall

 

 3  collect a late fee of $10.00 for each registration renewed after

 

 4  the expiration date. An application for a renewal of a

 

 5  registration using the regular mail and postmarked before the

 

 6  expiration date of that registration shall not be assessed a late

 

 7  fee. The late fee collected under this subsection shall be

 

 8  deposited into the general fund.

 

 9        (5) In addition to the registration taxes under this

 

10  section, the secretary of state shall collect taxes charged under

 

11  section 801j and credit revenues to a regional transit authority

 

12  created under the regional transit authority act, 2012 PA 387,

 

13  MCL 124.541 to 124.558, minus necessary collection expenses as

 

14  provided in section 9 of article IX of the state constitution of

 

15  1963. Necessary collection expenses incurred by the secretary of

 

16  state under this subsection shall be based upon an established

 

17  cost allocation methodology.

 

18        (6) This section does not apply to a historic vehicle.

 

19        (7) As used in this section:

 

20        (a) "Gross proceeds" means that term as defined in section 1

 

21  of the general sales tax act, 1933 PA 167, MCL 205.51, and

 

22  includes the value of the motor vehicle used as part payment of

 

23  the purchase price as that value is agreed to by the parties to

 

24  the sale, as evidenced by the signed agreement executed under

 

25  section 251.

 

26        (b) "List price" means the manufacturer's suggested base

 

27  list price as published by the secretary of state, or the

 


 1  manufacturer's suggested retail price as shown on the label

 

 2  required to be affixed to the vehicle under 15 USC 1232, if the

 

 3  secretary of state has not at the time of the sale of the vehicle

 

 4  published a manufacturer's suggested retail price for that

 

 5  vehicle, or the purchase price of the vehicle if the

 

 6  manufacturer's suggested base list price is unavailable from the

 

 7  sources described in this subdivision.

 

 8        (c) "Purchase price" means the gross proceeds received by

 

 9  the seller in consideration of the sale of the motor vehicle

 

10  being registered.