2017 Senate Bill 609

“Bad driver tax” repeal and amnesty

Introduced in the Senate

Oct. 4, 2017

Introduced by Sen. Dave Hildenbrand (R-29)

To repeal the “driver responsibility fees” (“bad driver tax”) that are assessed for various violations and must be paid for two consecutive years, effective Sept. 30, 2018. The bill would also clear any outstanding liability an individual may have to pay these fees, and permit individuals who lost their driver's license for nonpayment to get it back (on payment of a $125 fee). These very expensive fees were originally <a href="http://www.michiganvotes.org/2003-SB-509">adopted in 2003</a> to increase state revenues.

Referred to the Committee on Michigan Competitiveness

Oct. 12, 2017

Reported without amendment

With the recommendation that the bill pass.

Oct. 19, 2017

Passed in the Senate 37 to 0 (details)

To repeal the “driver responsibility fees” (“bad driver tax”) that are assessed for various traffic violations, effective Sept. 30, 2018. Individuals who lost their driver's license for nonpayment of these fees could get it back (on payment of a $125 fee). Fees that have been owed for more than six years would be forgiven, but not more recent ones. These very expensive fees were originally adopted in 2003 to increase state revenues.<br>Note: House Bill 5040 would end the fees and give amnesty for all amounts owed, not just amounts in arrears for six years. The Snyder administration indicated the Governor would veto this due to the state revenue loss, and this bill's partial amnesty is seen as a negotiating position on that. More than 300,000 people owe more than $600 million for these fees, much of which is uncollectible, and thousands have lost their driver's license for nonpayment.

Received in the House

Oct. 19, 2017

Referred to the Committee on Michigan Competitiveness

Jan. 31, 2018

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Feb. 15, 2018

Referred to the Committee on Michigan Competitiveness