2004 Senate Bill 1192: Exempt certain vehicles from $10 registration “late fee”

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Introduced by Sen. Ron Jelinek (R) on May 11, 2004, to exempt vehicles from the $10 “late fee” charged when a vehicle registration is renewed after a previous registration has expired, if they are only insured for comprehensive damage (as opposed to collision insurance). This “late fee” was imposed by 2003 Senate Bill 554, which increased a number of vehicle registration fees in order to balance the budget without cutting spending.
- Referred to the Senate Transportation Committee on May 11, 2004.

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1) You Can't Be Late Paying Taxes You Don't Owe by Anonymous Citizen on May 12, 2004
SB 1192 will remove one of several unfair features of last year's round of motorist tax increases. P.A. 152 imposed a $10 "late fee" on persons not renewing their license plates before they expire. Since license plates are only needed on cars that are used on the road (the plate tax is actually the road-user fee), no tax is payable on cars that aren't driven.

This includes cars that are withdrawn from use and stored, such as cars under lengthy repair, collector's items used only in the summer, cars stored against winter salt, or the vehicles of military servicepersons on duty overseas. However under P.A. 152 (SB 554, Sen. Shirley Johnson) every vehicle owner who doesn't maintain continuous registration is required to pay an extra $10 "late fee" upon returning the car to the road. The law reads, "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 . . ." Even though no road tax is "required to be paid" on a car that isn't driven, the state still insists on charging the $10 fee on cars withdrawn from use.

This bill would waive the fee on stored cars, as evidenced by insurance documents showing that only the comprehensive insurance was in effect on the car and that it wasn't driven on the road. The Secretary of State initially requested this provision be in the law, but it was denied by the legislative Republican leadership and Granholm Administration budget officials, eager only to get their hands on motorists' money. The present bill will give legislators of both parties another chance to treat car collectors and servicemen and women fairly.

The "late fee" isn't even Constitutional. The Michigan Constitution requires that all vehicle and fuel taxes be used for roads and transit, but the $10 fee is credited to the General Fund. A late fee is justifiable on cars that are driven continuously, since unpaid plate taxes represent illegal unpaid use of the roads, but it should be credited to road use
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2) 2004 Senate Bill 1192 (Exempt certain vehicles from $10 registration “late fee” ) by admin on January 1, 2001
Introduced in the Senate on May 11, 2004

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