The bill amends the Michigan Vehicle Code by updating Section 801 and adding Section 801d, which mandates the Secretary of State to collect specific taxes at the time of vehicle registration. This new tax structure exempts vehicles from all other state and local taxes, with exceptions for carriers operating motor vehicles and trailers. The bill introduces a detailed tax schedule based on the empty weight of various vehicle types, including motor vehicles, trailers, and trucks, while also providing reduced tax rates for vehicles modified for individuals with disabilities and certain agricultural and nonprofit vehicles. Notably, the tax rate for motorcycles is set at $25.00, and previous provisions regarding the motorcycle safety fund have been removed.

Additionally, the bill proposes amendments to the vehicle registration fee structure, particularly for motorcycles and electric vehicles. Starting February 19, 2019, $5.00 from each motorcycle fee will be allocated to a motorcycle safety fund for education programs. The new fee structure also includes increased registration fees for plug-in hybrid and electric vehicles based on their weight, with specific amounts set for different weight categories. Furthermore, if the gasoline tax exceeds 19 cents per gallon, additional fees will be applied to these vehicles, reflecting a shift towards environmentally conscious financial obligations for vehicle owners.

Statutes affected:
Senate Introduced Bill: 257.801