The bill amends the Michigan Vehicle Code by updating Section 801 and adding Section 801d, focusing on the collection of specific taxes at the time of vehicle registration. It mandates that these taxes will exempt vehicles from all other state and local taxes, with exceptions for carriers under the Motor Carrier Act and the Motor Carrier Fuel Tax Act. The bill introduces a detailed tax schedule based on the empty weight of various vehicles, 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, it sets a new tax rate of $25.00 for motorcycles and removes previous provisions related to the motorcycle safety fund.

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. It introduces a new fee structure based on the list price of vehicles and establishes regulatory fees for certain categories. The bill also increases registration fees for plug-in hybrid and electric vehicles, with specific amounts based on weight, and includes provisions for adjusting these fees if the gasoline tax exceeds 19 cents per gallon. Overall, the bill aims to streamline vehicle registration taxes while enhancing funding for safety programs and addressing the growing prevalence of electric and hybrid vehicles.

Statutes affected:
Senate Introduced Bill: 257.801