HOUSE BILL No. 6586

 

October 29, 2008, Introduced by Rep. Elsenheimer and referred to the Committee on Transportation.

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 801 (MCL 257.801), as amended by 2008 PA 7.

 

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

 

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

 


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

 

 2  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

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

10      5,501 to 6,000 pounds..............................    57.00

11      6,001 to 6,500 pounds..............................    62.00

12      6,501 to 7,000 pounds..............................    67.00

13      7,001 to 7,500 pounds..............................    71.00

14      7,501 to 8,000 pounds..............................    77.00

15      8,001 to 8,500 pounds..............................    81.00

16      8,501 to 9,000 pounds..............................    86.00

17      9,001 to 9,500 pounds..............................    91.00

18      9,501 to 10,000 pounds.............................    95.00

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

20                                                  of empty weight

 

 

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

 

22  under this subdivision shall be annually revised for the

 

23  registrations expiring on the appropriate October 1 or after that

 

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

 

25  times the personal income of Michigan for the preceding calendar

 

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

 

27  year that preceded that calendar year. In performing the

 

28  calculations under this subdivision, the secretary of state shall

 


 1  use the spring preliminary report of the United States department

 

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

 

 3  individual who uses a wheelchair or by an individual who

 

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

 

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

 

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

 

 7  this subdivision.

 

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

 

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

 

10  not under 1959 PA 243, MCL 125.1035 to 125.1043, and while

 

11  located on land otherwise assessable as real property under the

 

12  general property tax act, 1893 PA 206, MCL 211.1 to 211.157

 

13  211.155, if the trailer coach is used as a place of habitation,

 

14  and whether or not permanently affixed to the soil, is not exempt

 

15  from real property taxes.

 

16        (c) For a road tractor, truck, or truck tractor owned by a

 

17  farmer and used exclusively in connection with a farming

 

18  operation, including a farmer hauling livestock or farm equipment

 

19  for other farmers for remuneration in kind or in labor, but not

 

20  for money, or used for the transportation of the farmer and the

 

21  farmer's family, and not used for hire, 74 cents per 100 pounds

 

22  of empty weight of the road tractor, truck, or truck tractor. If

 

23  the road tractor, truck, or truck tractor owned by a farmer is

 

24  also used for a nonfarming operation, the farmer is subject to

 

25  the highest registration tax applicable to the nonfarm use of the

 

26  vehicle but is not subject to more than 1 tax rate under this

 

27  act.

 


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

 

 2  wood harvester and used exclusively in connection with the wood

 

 3  harvesting operations or a truck used exclusively to haul milk

 

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

 

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

 

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

 

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

 

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

 

 9  subdivision:

 

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

 

11  and transporting raw materials in the form produced at the

 

12  harvest site or hauling and transporting wood harvesting

 

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

 

14  whose primary activity is tree-trimming or landscaping.

 

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

 

16  following:

 

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

 

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

 

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

 

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

 

21  processor, chipper, or saw table.

 

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

 

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

 

24  skidder, or cable skidder.

 

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

 

26  including, but not limited to, a knucle-boom knuckle-boom loader,

 

27  front-end loader, or forklift.

 


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

 

 2  harvesting site specifically for the purpose of building or

 

 3  maintaining harvest site roads.

 

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

 

 5  transportation of processed lumber, Christmas trees, or processed

 

 6  firewood for a profit making venture.

 

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

 

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

 

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

 

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

 

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

 

12  ambulance.

 

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

 

14  institution, a municipality, a privately incorporated, nonprofit

 

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

 

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

 

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

 

18  registration plates are reissued for all vehicles by the

 

19  secretary of state.

 

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

 

21  similarly constructed vehicle owned and operated by a nonprofit

 

22  parents' transportation corporation used for school purposes,

 

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

 

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

 

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

 

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

 

27  carryall, or similarly constructed vehicle or motor vehicle is

 


 1  designated by proper signs showing the organization operating the

 

 2  vehicle.

 

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

 

 4  to transport equipment for providing dialysis treatment to

 

 5  children at camp; for a vehicle owned by the civil air patrol, as

 

 6  organized under 36 USC 40301 to 40307, $10.00 per plate, if the

 

 7  vehicle is designated by a proper sign showing the civil air

 

 8  patrol's name; for a vehicle owned and operated by a nonprofit

 

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

 

10  recycling center or a federally recognized nonprofit conservation

 

11  organization; for a motor vehicle having a truck chassis and a

 

12  locomotive or ship's body that is owned by a nonprofit veterans

 

13  organization and used exclusively in parades and civic events; or

 

14  for an emergency support vehicle used exclusively for emergencies

 

15  and owned and operated by a federally recognized nonprofit

 

16  charitable organization, $10.00 per plate.

 

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

 

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

 

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

 

20  the empty weight of the truck.

 

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

 

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

 

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

 

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

 

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

 

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

 

27  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

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

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

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

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

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

 

 

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

 

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

 

11  which registration is sought under this subdivision is more than

 

12  the tax provided under the preceding provisions of this

 

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

 

14  subdivision is not less than the tax required under subdivision

 

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

 

16  price.

 

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

 

18  trailer or any other combination of vehicles and for each truck

 

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

 

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

 

21  schedule of elected gross weights:

 

 

22      Elected gross weight                                   Tax

23      0 to 24,000 pounds.............................. $     491.00

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

25      26,001 to 28,000 pounds.........................       558.00

26      28,001 to 32,000 pounds.........................       649.00

27      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

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

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

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

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

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

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

10      100,001 to 115,000 pounds.......................     2,223.00

11      115,001 to 130,000 pounds.......................     2,448.00

12      130,001 to 145,000 pounds.......................     2,670.00

13      145,001 to 160,000 pounds.......................     2,894.00

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

 

 

15        For each commercial vehicle registered under this

 

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

 

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

 

18  51, MCL 247.675.

 

19        If a truck or road tractor without trailer is leased from an

 

20  individual owner-operator, the lessee, whether a person, firm, or

 

21  corporation, shall pay to the owner-operator 60% of the tax

 

22  prescribed in this subdivision for the truck tractor or road

 

23  tractor at the rate of 1/12 for each month of the lease or

 

24  arrangement in addition to the compensation the owner-operator is

 

25  entitled to for the rental of his or her equipment.

 

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

 

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

 

28  schedule of empty weights:

 


 

     Empty weights                                          Tax

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

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

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

 

 

 5        The registration plate issued under this subdivision expires

 

 6  only when the secretary of state reissues a new registration

 

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

 

 8  secretary of state reissues a new registration plate for all

 

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

 

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

 

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

 

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

 

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

 

14  under this subdivision is nontransferable.

 

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

 

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

 

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

 

18  following schedule of empty weights:

 

 

19      Empty weights                                  Per 100 pounds

20      0 to 4,000 pounds.............................. $     1.76

21      4,001 to 6,000 pounds..........................       2.20

22      6,001 to 10,000 pounds.........................       2.72

23      10,001 pounds and over.........................       3.25

24

25      (n) For each motorcycle........................ $    23.00

 

 

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


 

 1  under this subdivision shall be annually revised for the

 

 2  registrations expiring on the appropriate October 1 or after that

 

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

 

 4  times the personal income of Michigan for the preceding calendar

 

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

 

 6  year that preceded that calendar year. In performing the

 

 7  calculations under this subdivision, the secretary of state shall

 

 8  use the spring preliminary report of the United States department

 

 9  of commerce or its successor agency.

 

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

 

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

 

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

 

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

 

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

 

15  1, 1984, $3.00 of each motorcycle fee shall be placed in a

 

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

 

17  only for funding the motorcycle safety education program as

 

18  provided for under sections 312b and 811a.

 

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

 

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

 

21  part of a moving van in transporting household furniture and

 

22  household effects or the equipment or those engaged in conducting

 

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

 

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

 

25  subdivision.

 

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

 

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


 

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

 

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

 

 3  otherwise subject to the tax schedule described in subdivision

 

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

 

 5  schedule based upon registration periods of 12 months:

 

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

 

 7  first registration that is not a transfer registration under

 

 8  section 809 and for the first registration after a transfer

 

 9  registration under section 809, according to the following

 

10  schedule based on the vehicle's list price:

 

 

11      List Price                                             Tax

12      $ 0 - $ 6,000.00................................   $    30.00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

 

 

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

 

10  $5.00 for each $1,000.00 increment or fraction of a $1,000.00

 

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

 

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

 

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

 

14  or decreased tax.

 

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

 

16  under subparagraph (i).

 

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

 

18  under subparagraph (ii).

 

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

 

20  tax assessed under subparagraph (iii).

 

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

 

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

 

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

 

24  subsequent model year that has been previously registered in

 

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

 

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

 

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

 


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

 

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

 

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

 

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

 

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

 

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

 

 7  uses a wheelchair and for which registration plates are issued

 

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

 

 9  tax provided for in this subdivision.

 

10        (q) For a wrecker, $200.00.

 

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

 

12  section, a computation that does not result in a whole dollar

 

13  figure shall be rounded to the next lower whole dollar when the

 

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

 

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

 

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

 

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

 

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

 

19  fully equipped for the use for which the registration application

 

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

 

21  satisfactory, the secretary of state shall determine the actual

 

22  weight. Each application for registration of a vehicle under

 

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

 

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

 

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

 

26  necessary if there is presented with the application a

 

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

 


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

 

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

 

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

 

 4  that has increased the weight and that the previous registered

 

 5  weight is the true weight.

 

 6        (2) A manufacturer is not exempted under this act from

 

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

 

 8  the specified number of motor vehicles registered. A dealer is

 

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

 

10        (3) Until October 1, 2009, the tax for a vehicle with an

 

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

 

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

 

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

 

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

 

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

 

16  and used to regulate highway safety.

 

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

 

18  transportation administration collection fund created in section

 

19  810b.

 

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

 

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

 

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

 

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

 

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

 

25  registration using the regular mail and postmarked before the

 

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

 

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

 


 1  deposited into the general fund.

 

 2        (5) In lieu of the tax assessed and paid annually for

 

 3  vehicle registration, the secretary of state may assess a 1-time

 

 4  tax of $200.00. A tax assessed under this subsection shall be

 

 5  assessed only 1 time during the period the vehicle is owned by

 

 6  the registered owner and exempts the vehicle from any other

 

 7  vehicle registration tax under this section.

 

 8        (6) (5) As used in this section:

 

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

 

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

 

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

 

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

 

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

 

14  section 251.

 

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

 

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

 

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

 

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

 

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

 

20  published a manufacturer's suggested retail price for that

 

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

 

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

 

23  sources described in this subdivision.

 

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

 

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

 

26  being registered.