TIRE DISPOSAL SURCHARGE; EXTEND SUNSET S.B. 449:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 449 (as introduced 8-20-19)
Sponsor: Senator Curtis Hertel, Jr.
House Committee: Appropriations
Senate Committee: Appropriations
CONTENT
The bill would amend Section 806 of the Michigan Vehicle Code to extend the sunset for the collection of a tire disposal surcharge from December 31, 2019, to October 1, 2023.
The Code requires each person who applies for a certificate of title, a salvage vehicle certificate of title, or a scrap certificate of title to pay a tire disposal surcharge of $1.50 for each certificate or duplicate title received. This fee is deposited into the Scrap Tire Regulatory Fund, created under Section 16908 of the Natural Resources and Environmental Protection Act. The fee is currently scheduled for sunset on December 31, 2019. The bill would extend that sunset until October 1, 2023.
FISCAL IMPACT
The bill would delay the December 31, 2019, sunset on the tire disposal surcharge paid with the application for a vehicle title to October 1, 2023. A tire disposal surcharge of $1.50 is charged whenever a person applies for a vehicle title, and that revenue, which totals approximately $4.2 million per year, is credited to the Scrap Tire Regulatory Fund. The Scrap Tire Regulatory Fund is used by the Department of Environment, Great Lakes, and Energy to cover its costs related to administering laws and regulations dealing with scrap tires, as well as for grants for the cleanup or removal of scrap tires from private or public land.
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.