The bill amends the Michigan Vehicle Code, specifically updating sections 227 and 801 regarding vehicle registration and associated taxes. It emphasizes the obligation for vehicle owners to submit a proper application and pay the registration fee by changing the language from "shall" to "must." Additionally, it mandates that every application for vehicle registration renewal must include proof of insurance, which can now be submitted through the applicant's vehicle policy information, treated as confidential. The bill also prohibits the renewal of vehicle registrations for owners with a delinquent balance related to the miles-traveled tax and clarifies definitions for terms such as "delinquent balance" and "policy information."

Moreover, the bill introduces a tiered tax system for vehicle registration based on the value of the vehicle, with specific rates for vehicles valued between $7,000 and $30,000 and incremental increases for those above $30,000. It offers a 90% reduction in tax rates for subsequent registrations of the same vehicle and includes provisions for vehicles modified for wheelchair access, which will be taxed at 50% of the standard rate. New fees for electric and plug-in hybrid vehicles are also established, effective from January 1, 2017, to December 31, 2026, with additional fees if the gasoline tax exceeds 19 cents per gallon. The bill outlines a framework for tax collection, including late fees and exemptions for historic vehicles, and its enactment is contingent upon the passage of House Bill No. 5765.

Statutes affected:
House Introduced Bill: 257.227, 257.801