HB 4804

HOUSE BILL NO. 4804
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 801 (MCL 257.801), as amended by
2023 PA 129.
the people of the state of michigan enact:
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Sec. 801. (1) The secretary of state shall collect the
following taxes at the time of registering a vehicle, which exempts the vehicle
from all other state and local taxation, except the fees and taxes to be paid
by certain carriers operating motor vehicles and trailers under the motor
carrier act, 1933 PA 254, MCL 475.1 to 479.42; the taxes imposed by the motor
carrier fuel tax
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act,
1980 PA 119, MCL 207.211 to 207.234; and except as otherwise provided by this
act:
(a) For a motor
vehicle, including a motor home, except as otherwise provided by law, and a
pickup truck or van that weighs not more than 8,000 pounds, except as otherwise
provided by law, according 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
5,501 to 6,000 pounds
57.00
6,001 to 6,500 pounds
62.00
6,501 to 7,000 pounds
67.00
7,001 to 7,500 pounds
71.00
7,501 to 8,000 pounds
77.00
8,001 to 8,500 pounds
81.00
8,501 to 9,000 pounds
86.00
9,001 to 9,500 pounds
91.00
9,501 to 10,000 pounds
95.00
over 10,000 pounds
$ 0.90 per 100 pounds of empty weight
On October 1, 1983
and October 1, 1984, the tax assessed under this subdivision must be annually
revised for the registrations expiring on the appropriate October 1 or after
that date by multiplying the tax assessed in the preceding fiscal year times
the
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personal
income of Michigan for the preceding calendar year divided by the personal
income of Michigan for the calendar year that preceded that calendar year. In performing
the calculations under this subdivision, the secretary of state shall use the
spring preliminary report of the United States Department of Commerce or its
successor agency. A passenger motor vehicle that has been modified with a
permanently installed wheelchair lift mechanism or with permanently installed
hand controls and that is owned by an individual who uses a wheelchair or by an
individual who transports a member of the individual's household who uses a
wheelchair and for which registration plates are issued under section 803d must
be assessed at the rate of 50% of the tax provided for in this subdivision. As
used in this subdivision, "permanently installed hand controls" means
a permanently installed device designed to replace the brake and gas pedals of
a motor vehicle with hand controls.
(b) For a trailer
coach attached to a motor vehicle, the tax must be assessed as provided in
subdivision (l). A trailer coach not under 1959 PA 243, MCL 125.1035 to 125.1043, and
while located on land otherwise assessable as real property under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, if the trailer coach is
used as a place of habitation, and whether or not permanently affixed to the
soil, is not exempt from real property taxes.
(c) For a road
tractor, modified agricultural vehicle, truck, or truck tractor owned by a
farmer and used exclusively in connection with a farming operation, including a
farmer hauling livestock or farm equipment for other farmers for remuneration
in kind or in labor, but not for money, or used for the transportation
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of
the farmer and the farmer's family, and not used for hire, 74 cents per 100
pounds of empty weight of the road tractor, truck, or truck tractor. If the
road tractor, modified agricultural vehicle, truck, or truck tractor owned by a
farmer is also used for a nonfarming operation, the farmer is subject to the
highest registration tax applicable to the nonfarm use of the vehicle but is
not subject to more than 1 tax rate under this act.
(d) For a road
tractor, truck, or truck tractor owned by a wood harvester and used exclusively
in connection with the wood harvesting operations or a truck used exclusively
to haul milk from the farm to the first point of delivery, 74 cents per 100
pounds of empty weight of the road tractor, truck, or truck tractor. A
registration secured by payment of the tax prescribed in this subdivision
continues in full force and effect until the regular expiration date of the
registration. As used in this subdivision:
(i) "Wood harvester" includes the
person or persons hauling and transporting raw materials in the form produced
at the harvest site or hauling and transporting wood harvesting equipment. Wood
harvester does not include a person or persons whose primary activity is
tree-trimming or landscaping.
(ii) "Wood harvesting equipment"
includes all of the following:
(A) A vehicle that
directly harvests logs or timber, including, but not limited to, a processor or
a feller buncher.
(B) A vehicle that
directly processes harvested logs or timber, including, but not limited to, a
slasher, delimber, processor, chipper, or saw table.
(C) A vehicle that
directly processes harvested logs or timber, including, but not limited to, a
forwarder, grapple skidder, or cable skidder.
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(D) A vehicle that
directly loads harvested logs or timber, including, but not limited to, a knuckle-boom
loader, front-end loader, or forklift.
(E) A bulldozer or
road grader being transported to a wood harvesting site specifically to build
or maintain harvest site roads.
(iii) "Wood harvesting operations"
does not include the transportation of processed lumber, Christmas trees, or
processed firewood for a profit-making venture.
(e) For a hearse or
ambulance used exclusively by a licensed funeral director in the general
conduct of the licensee's funeral business, including a hearse or ambulance
whose owner is engaged in the business of leasing or renting the hearse or
ambulance to others, $1.17 per 100 pounds of the empty weight of the hearse or
ambulance.
(f) For a vehicle
owned and operated by this state, a state institution, a municipality, a
privately incorporated, nonprofit volunteer fire department, or a nonpublic,
nonprofit college or university, $5.00 per plate. A registration plate issued
under this subdivision expires on June 30 of the year in which new registration
plates are reissued for all vehicles by the secretary of state.
(g) For a bus
including a station wagon, carryall, or similarly constructed vehicle owned and
operated by a nonprofit parents' transportation corporation used for school
purposes, parochial school or society, church Sunday school, or any other
grammar school, or by a nonprofit youth organization or nonprofit
rehabilitation facility; or a motor vehicle owned and operated by a senior
citizen center, $10.00, if the bus, station wagon, carryall,
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or
similarly constructed vehicle or motor vehicle is designated by proper signs
showing the organization operating the vehicle.
(h) For a vehicle
owned by a nonprofit organization and used to transport equipment for providing
dialysis treatment to children at camp; for a vehicle owned by the Civil Air
Patrol, as organized under 36 USC 40301 to 40307, $10.00 per plate, if the
vehicle is designated by a proper sign that shows the Civil Air Patrol's name;
for a vehicle owned and operated by a nonprofit veterans center; for a vehicle
owned and operated by a nonprofit recycling center or a federally recognized
nonprofit conservation organization; for a motor vehicle having a truck chassis
and a locomotive or ship's body that is owned by a nonprofit veterans
organization and used exclusively in parades and civic events; or for an
emergency support vehicle used exclusively for emergencies and owned and
operated by a federally recognized nonprofit charitable organization; or for a
vehicle owned and operated by a nonprofit food pantry or nonprofit food bank,
$10.00 per plate.
(i) For each truck
owned and operated free of charge by a bona fide ecclesiastical or charitable
corporation, or Red Cross, Girl Scout, or Boy Scout organization, 65 cents per
100 pounds of the empty weight of the truck.
(j) For each truck,
weighing 8,000 pounds or less, and not used to tow a vehicle, for each
privately owned truck used to tow a trailer for recreational purposes only and
not involved in a profit-making venture, and for each vehicle designed and used
to tow a mobile home or a trailer coach, except as provided in subdivision (b),
$38.00 or an amount computed according to the following schedule of empty
weights, whichever is greater:
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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
If the tax required
under subdivision (p) for a vehicle of the same model year with the same list
price as the vehicle for which registration is sought under this subdivision is
more than the tax provided under the preceding provisions of this subdivision
for an identical vehicle, the tax required under this subdivision is not less
than the tax required under subdivision (p) for a vehicle of the same model
year with the same list price.
(k) For each truck
weighing 8,000 pounds or less towing a trailer or any other combination of
vehicles and for each truck weighing 8,001 pounds or more, road tractor, or
truck tractor, except as provided in subdivision (j), according to the
following schedule of elected gross weights:
Elected gross weight
Tax
0 to 24,000 pounds
$
590.00
24,001 to 26,000 pounds
670.00
26,001 to 28,000 pounds
670.00
28,001 to 32,000 pounds
779.00
32,001 to 36,000 pounds
893.00
36,001 to 42,000 pounds
1,049.00
42,001 to 48,000 pounds
1,206.00
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48,001 to 54,000 pounds
1,362.00
54,001 to 60,000 pounds
1,522.00
60,001 to 66,000 pounds
1,678.00
66,001 to 72,000 pounds
1,835.00
72,001 to 80,000 pounds
1,992.00
80,001 to 90,000 pounds
2,152.00
90,001 to 100,000 pounds
2,403.00
100,001 to 115,000 pounds
2,668.00
115,001 to 130,000 pounds
2,938.00
130,001 to 145,000 pounds
3,204.00
145,001 to 160,000 pounds
3,473.00
over 160,000 pounds
3,741.00
For each commercial
vehicle registered under this subdivision or section 801g, $15.00 must be
deposited in the truck safety fund to be expended as
provided in under section 25 of 1951 PA
51, MCL 247.675.
If a truck tractor
or road tractor without trailer is leased from an individual owner-operator,
the lessee, whether an individual, firm, or corporation, shall pay to the
owner-operator 60% of the tax prescribed in this subdivision for the truck
tractor or road tractor at the rate of 1/12 for each month of the lease or
arrangement in addition to the compensation the owner-operator is entitled to
for the rental of the owner-operator's equipment.
(l) For each pole trailer, semitrailer,
trailer coach, or trailer, the tax must be assessed according to the following
schedule of empty weights:
Empty weights
Tax
0 to 2,499 pounds
$
75.00
2,500 to 9,999 pounds
200.00
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10,000 pounds and over
300.00
The registration
plate issued under this subdivision expires only when the secretary of state
reissues a new registration plate for all trailers. Beginning October 1, 2005,
if the secretary of state reissues a new registration plate for all trailers, a
person who has once paid the tax as increased by 2003 PA 152 for a vehicle
under this subdivision is not required to pay the tax for that vehicle a second
time, but is required to pay only the cost of the reissued plate at the rate
provided in section 804(2) for a standard plate. A registration plate issued
under this subdivision is nontransferable.
(m) For each
commercial vehicle used for the transportation of passengers for hire except
for a vehicle for which a payment is made under 1960 PA 2, MCL 257.971 to
257.972, according to the 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
(n) For each
motorcycle, as follows:
(i)
Until
  February 18, 2019
$
23.00
(ii)
Beginning
  February 19, 2019
$
25.00
On October 1, 1983,
and October 1, 1984, the tax assessed under this subdivision must be annually
revised for the registrations expiring on the appropriate October 1 or after
that date by multiplying the tax assessed in the preceding fiscal year times the
personal income of Michigan for the preceding calendar
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year
divided by the personal income of Michigan for the calendar year that preceded
that calendar year. In performing the calculations under this subdivision, the
secretary of state shall use the spring preliminary report of the United States
Department of Commerce or its successor agency.
Beginning January
1, 1984, the registration tax for each motorcycle is increased by $3.00. The
$3.00 increase is not part of the tax assessed under this subdivision for the
purpose of the annual October 1 revisions but is in addition to the tax
assessed as a result of the annual October 1 revisions. Beginning January 1,
1984 and ending February 18, 2019, $3.00 of each motorcycle fee must be placed
in a motorcycle safety fund in the state treasury and must be used only for
funding the motorcycle safety education program as
provided for under sections 312b and 811a. Beginning February 19, 2019,
$5.00 of each motorcycle fee must be placed in the motorcycle safety fund and
must be used only for funding the motorcycle safety education program as provided for under sections 312b and 811a.
(o) For each truck
weighing 8,001 pounds or more, road tractor, or truck tractor used exclusively
as a moving van or part of a moving van in transporting household furniture and
household effects or the equipment or those engaged in conducting carnivals, at
the rate of 80% of the schedule of elected gross weights in subdivision (k) as
modified by the operation of that subdivision.
(p) After September
30, 1983, each motor vehicle of the 1984 or a subsequent model year as shown on
the application required under section 217 that has not been previously subject
to the tax rates of this section and that is of the motor vehicle category
otherwise subject to the tax schedule described in subdivision (a),
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and
each low-speed vehicle according to the following schedule based upon on registration
periods of 12 months:
(i) Except as otherwise provided in this
subdivision, according to the following schedule based on the vehicle's list price:
List Price
Tax
$ 0 - $ 6,000.00
$
36.00
More than $ 6,000.00 - $ 7,000.00
$
40.00
More than $ 7,000.00 - $ 8,000.00
$
46.00
More than $ 8,000.00 - $ 9,000.00
$
52.00
More than $ 9,000.00 - $ 10,000.00
$
58.00
More than $ 10,000.00 - $ 11,000.00
$
64.00
More than $ 11,000.00 - $ 12,000.00
$
70.00
More than $ 12,000.00 - $ 13,000.00
$
76.00
More than $ 13,000.00 - $ 14,000.00
$
82.00
More than $ 14,000.00 - $ 15,000.00
$
88.00
More than $ 15,000.00 - $ 16,000.00
$
94.00
More than $ 16,000.00 - $ 17,000.00
$
100.00
More than $ 17,000.00 - $ 18,000.00
$
106.00
More than $ 18,000.00 - $ 19,000.00
$
112.00
More than $ 19,000.00 - $ 20,000.00
$
118.00
More than $ 20,000.00 - $ 21,000.00
$
124.00
More than $ 21,000.00 - $ 22,000.00
$
130.00
More than $ 22,000.00 - $ 23,000.00
$
136.00
More than $ 23,000.00 - $ 24,000.00
$
142.00
More than $ 24,000.00 - $ 25,000.00
$
148.00
More than $ 25,000.00 - $ 26,000.00
$
154.00
More than $ 26,000.00 - $ 27,000.00
$
160.00
More than $ 27,000.00 - $ 28,000.00
$
166.00
More than $ 28,000.00 - $ 29,000.00
$
172.00
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More than $ 29,000.00 - $ 30,000.00
$
178.00
More than
$30,000.00, the tax of $178.00 is increased by $6.00 for each $1,000.00
increment or fraction of a $1,000.00 increment over $30,000.00. If a current
tax increases or decreases as a result of 1998 PA 384, only a vehicle purchased
or transferred after January 1, 1999 must be assessed the increased or
decreased tax.
(ii) For the second registration, 90% of the
tax assessed under subparagraph (i).
(iii) For the third registration, 90% of the
tax assessed under subparagraph (ii).
(iv) For the fourth and subsequent
registrations, 90% of the tax assessed under subparagraph (iii).
For a vehicle of
the 1984 or a subsequent model year that has been previously registered by a
person other than the person applying for registration or for a vehicle of the
1984 or a subsequent model year that has been previously registered in another
state or country and is registered for the first time in this state, the tax
under this subdivision is determined by subtracting the model year of the
vehicle from the calendar year for which the registration is sought. If the
result is zero or a negative figure, the first registration tax must be paid.
If the result is 1, 2, or 3 or more, then, respectively, the second, third, or
subsequent registration tax must be paid. A passenger motor vehicle that has
been modified with a permanently installed wheelchair lift mechanism or with
permanently installed hand controls and that is owned by an individual who uses
a wheelchair or by an individual who transports a member of the individual's
household who uses a wheelchair and for which registration plates
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are
issued under section 803d must be assessed at the rate of 50% of the tax
provided for in this subdivision. As used in this subdivision,
"permanently installed hand controls" means a permanently installed
device designed to replace the brake and gas pedals of a motor vehicle with
hand controls.
(q) For a wrecker,
$200.00.
(r) When the
secretary of state computes a tax under this act, a computation that does not
result in a whole dollar figure must be rounded to the next lower whole dollar
if the computation results in a figure ending in 50 cents or less and must be
rounded to the next higher whole dollar if the computation results in a figure
ending in 51 cents or more, unless specific taxes are specified, and the
secretary of state may accept the manufacturer's shipping weight of the vehicle
fully equipped for the use for which the registration application is made. If
the weight is not correctly stated or is not satisfactory, the secretary of
state shall determine the actual weight. Each application for registration of a
vehicle under subdivisions (j) and (m) must have attached to the application a
scale weight receipt of the vehicle fully equipped as of the time the
application is made. The scale weight receipt is not necessary if there is
presented with the application a registration receipt of the previous year that
shows on its face the weight of the motor vehicle as registered with the
secretary of state and that is accompanied by a statement of the applicant that
there has not been a structural change in the motor vehicle that has increased
the weight and that the previous registered weight is the true weight.
(2) A manufacturer
is not exempted under this act from paying ad valorem taxes on vehicles in
stock or bond, except on the
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specified
number of motor vehicles registered. A dealer is exempt from paying ad valorem
taxes on vehicles in stock or bond.
(3) Until October
1, 2027, the tax for a vehicle with an empty weight over 10,000 pounds imposed
under subsection (1)(a) and the taxes imposed under subsection (1)(c), (d),
(e), (f), (i), (j), (m), (o), and (p) are each increased as follows:
(a) A regulatory
fee of $2.25, which must be credited to the traffic law enforcement and safety
fund created in section 819a and used to regulate highway safety.
(b) A fee of $5.75,
which must be credited to the transportation administration collection fund
created in section 810b.
(4) Except as
otherwise provided in this subsection, if a tax required to be paid under this
section is not received by the secretary of state on or before the expiration
date of the registration plate, the secretary of state shall collect a late fee
of $10.00 for each registration renewed after the expiration date. An
application for a renewal of a registration using the regular mail and
postmarked before the expiration date of that registration must not be assessed
a late fee. The late fee collected under this subsection must be deposited into
the general fund. The secretary of state shall waive the late fee collected
under this subsection if all of the following are satisfied:
(a) The registrant
presents proof of storage insurance for the vehicle for which the late fee is
assessed that is valid for the period of time between the expiration date of
the most recent registration and the date of application for the renewal.
(b) The registrant
requests in person at a department branch office that the late fee be waived at
the time of application for
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the
renewal.
(5) In addition to
the registration taxes under this section, the secretary of state shall collect
taxes charged under section 801j and credit revenues to a regional transit
authority created under the regional transit authority act, 2012 PA 387, MCL
124.541 to 124.558, minus necessary collection expenses as provided in section
9 of article IX of the state constitution of 1963. Necessary collection
expenses incurred by the secretary of state under this subsection must be based
upon on an
established cost allocation methodology.
(6) This section
does not apply to a historic vehicle.
(7) Beginning January 1, 2017, the The registration fee imposed under this section for a
vehicle using 4 or more tires is increased as follows:
(a) If the vehicle
is a plug-in hybrid electric vehicle, the registration fee for that vehicle is
increased by $30.00 for a vehicle with an empty weight of 8,000 pounds or less,
and $100.00 for a vehicle with an empty weight of more than 8,000 pounds. As
used in this subdivision subsection and subsection (8)(a), "plug-in
hybrid electric vehicle" means a vehicle that can use batteries to power
an electric motor and use another fuel, such as gasoline or diesel fuel, to power an internal combustion engine or
other propulsion source, and that may use electricity from the grid to run the
vehicle some or all of the time.
(b) If the vehicle
is an electric vehicle, the registration fee for that vehicle is increased by
$100.00 for a vehicle with an empty weight of 8,000 pounds or less, and $200.00
for a vehicle with an empty weight of more than 8,000 pounds. As used in this
subdivision and subsection (8)(b), "electric vehicle" means a
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vehicle
that is propelled solely by electrical energy and that is not capable of using
gasoline, diesel fuel, or alternative fuel to propel the vehicle.
(c) If the vehicle is a hybrid electric vehicle, the registration fee
for that vehicle is increased by $75.00 for a vehicle with an empty weight of
8,000 pounds or less, and $100.00 for a vehicle with an empty weight of more
than 8,000 pounds. As used in this subdivision and subsection (8)(c),
"hybrid electric vehicle" means a vehicle, other than a plug-in
hybrid electric vehicle, that is powered by an integrated propulsion system
consisting of an electric motor and combustion engine.
(8) Beginning January 1, 2017, if If the tax on gasoline imposed under section 8 of the
motor fuel tax act, 2000 PA 403, MCL 207.1008, is increased
above more than 19 cents per gallon, the
secretary of state shall increase the fees collected under subsection (7) as
follows:
(a) For a plug-in
hybrid electric vehicle, $2.50 per each 1 cent above 19 cents per gallon.
(b) For an electric
vehicle, $5.00 per each 1 cent above 19 cents per gallon.
(c) For a hybrid electric vehicle, $1.25 for each 1 cent above 19 cents
per gallon.
(9) As used in this
section:
(a)
"Alternative fuel" means that term as defined in section 151 of the
motor fuel tax act, 2000 PA 403, MCL 207.1151.
(b) "Diesel
fuel" means that term as defined in section 2 of the motor fuel tax act,
2000 PA 403, MCL 207.1002.
(c)
"Gasoline" means that term as defined in section 3 of the motor fuel
tax act, 2000 PA 403, MCL 207.1003.
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(d) "Gross
proceeds" means that term as defined in section 1 of the general sales tax
act, 1933 PA 167, MCL 205.51, and includes the value of the motor vehicle used
as part payment of the purchase price as that value is agreed to by the parties
to the sale, as evidenced by the signed agreement executed under section 251.
(e) "List
price" means the manufacturer's suggested base list price as published by
the secretary of state, or the manufacturer's suggested retail price as shown
on the label required to be affixed to the vehicle under 15 USC 1232, if the
secretary of state has not at the time of the sale of the vehicle published a
manufacturer's suggested retail price for that vehicle, or the purchase price
of the vehicle if the manufacturer's suggested base list price is unavailable
from the sources described in this subdivision.
(f) "Purchase
price" means the gross proceeds received by the seller in consideration of
the sale of the motor vehicle being registered.
Enacting section 1. This amendatory act takes effect 1
year after the date it is enacted into law.