SB-1035, As Passed House, April 27, 2006

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1035

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 801 (MCL 257.801), as amended by 2004 PA 427.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 801. (1) The secretary of state shall collect the

 

following taxes at the time of registering a vehicle, which shall

 

exempt the vehicle from all other state and local taxation, except

 

the fees and taxes provided by law to be paid by certain carriers

 

operating motor vehicles and trailers under the motor carrier act,

 

1933 PA 254, MCL 475.1 to 479.43; the taxes imposed by the motor

 

carrier fuel tax act, 1980 PA 119, MCL 207.211 to 207.234; and

 

except as otherwise provided by this act:

 

     (a) For a motor vehicle, including a motor home, except as

 

otherwise provided, and a pickup truck or van that weighs not more


 

than 8,000 pounds, except as otherwise provided, according to the

 

following schedule of empty weights:

 

     Empty weights                                              Tax

     0 to 3,000 pounds....................................... $ 29.00

     3,001 to 3,500 pounds...................................   32.00

     3,501 to 4,000 pounds...................................   37.00

     4,001 to 4,500 pounds...................................   43.00

     4,501 to 5,000 pounds...................................   47.00

     5,001 to 5,500 pounds...................................   52.00

     5,501 to 6,000 pounds...................................   57.00

     6,001 to 6,500 pounds...................................   62.00

     6,501 to 7,000 pounds...................................   67.00

     7,001 to 7,500 pounds...................................   71.00

     7,501 to 8,000 pounds...................................   77.00

     8,001 to 8,500 pounds...................................   81.00

     8,501 to 9,000 pounds...................................   86.00

     9,001 to 9,500 pounds...................................   91.00

     9,501 to 10,000 pounds..................................   95.00

     over 10,000 pounds........................ $ 0.90 per 100 pounds

                                                      of empty weight

 

     On October 1, 1983, and October 1, 1984, the tax assessed

 

under this subdivision shall be annually revised for the

 

registrations expiring on the appropriate October 1 or after that

 

date by multiplying the tax assessed in the preceding fiscal year

 

times the personal income of Michigan for the preceding calendar

 

year divided by the personal income of Michigan for the calendar

 

year that preceded that calendar year. In performing the


 

calculations under this subdivision, the secretary of state shall

 

use the spring preliminary report of the United States department

 

of commerce or its successor agency. A van that is owned by an

 

individual who uses a wheelchair or by an individual who transports

 

a resident of his or her household who uses a wheelchair and for

 

which registration plates are issued under section 803d shall be

 

assessed at the rate of 50% of the tax provided for in this

 

subdivision.

 

     (b) For a trailer coach attached to a motor vehicle, the tax

 

shall be assessed as provided in subdivision (l). A trailer coach

 

not under 1959 PA 243, MCL 125.1035 to 125.1043, and while located

 

on land otherwise assessable as real property under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157, if the trailer

 

coach is used as a place of habitation, and whether or not

 

permanently affixed to the soil, is not exempt from real property

 

taxes.

 

     (c) For a road tractor, truck, or truck tractor owned by a

 

farmer and used exclusively in connection with a farming operation,

 

including a farmer hauling livestock or farm equipment for other

 

farmers for remuneration in kind or in labor, but not for money, or

 

used for the transportation of the farmer and the farmer's family,

 

and not used for hire, 74 cents per 100 pounds of empty weight of

 

the road tractor, truck, or truck tractor. If the road tractor,

 

truck, or truck tractor owned by a farmer is also used for a

 

nonfarming operation, the farmer is subject to the highest

 

registration tax applicable to the nonfarm use of the vehicle but

 

is not subject to more than 1 tax rate under this act.


 

     (d) For a road tractor, truck, or truck tractor owned by a

 

wood harvester and used exclusively in connection with the wood

 

harvesting operations or a truck used exclusively to haul milk from

 

the farm to the first point of delivery, 74 cents per 100 pounds of

 

empty weight of the road tractor, truck, or truck tractor. A

 

registration secured by payment of the  fee as  tax prescribed in

 

this subdivision continues in full force and effect until the

 

regular expiration date of the registration. As used in this

 

subdivision:  , "wood

 

     (i) "Wood harvester" includes the person or persons hauling and

 

transporting raw materials in the form produced at the harvest site

 

or hauling and transporting wood harvesting equipment.  As used in

 

this subdivision, "wood  Wood harvester does not include a person

 

or persons whose primary activity is tree-trimming or landscaping.

 

     (ii) "Wood harvesting equipment" includes all of the following:

 

     (A) A vehicle that directly harvests logs or timber,

 

including, but not limited to, a processor or a feller buncher.

 

     (B) A vehicle that directly processes harvested logs or

 

timber, including, but not limited to, a slasher, delimber,

 

processor, chipper, or saw table.

 

     (C) A vehicle that directly processes harvested logs or

 

timber, including, but not limited to, a forwarder, grapple

 

skidder, or cable skidder.

 

     (D) A vehicle that directly loads harvested logs or timber,

 

including, but not limited to, a knucle-boom loader, front-end

 

loader, or forklift.

 

     (E) A bulldozer or road grader being transported to a wood


 

harvesting site specifically for the purpose of building or

 

maintaining harvest site roads.

 

     (iii) "Wood harvesting operations" does not include the

 

transportation of processed lumber, Christmas trees, or processed

 

firewood for a profit making venture.

 

     (e) For a hearse or ambulance used exclusively by a licensed

 

funeral director in the general conduct of the licensee's funeral

 

business, including a hearse or ambulance whose owner is engaged in

 

the business of leasing or renting the hearse or ambulance to

 

others, $1.17 per 100 pounds of the empty weight of the hearse or

 

ambulance.

 

     (f) For a vehicle owned and operated by this state, a state

 

institution, a municipality, a privately incorporated, nonprofit

 

volunteer fire department, or a nonpublic, nonprofit college or

 

university, $5.00 per plate. A registration plate issued under this

 

subdivision expires on June 30 of the year in which new

 

registration plates are reissued for all vehicles by the secretary

 

of state.

 

     (g) For a bus including a station wagon, carryall, or

 

similarly constructed vehicle owned and operated by a nonprofit

 

parents' transportation corporation used for school purposes,

 

parochial school or society, church Sunday school, or any other

 

grammar school, or by a nonprofit youth organization or nonprofit

 

rehabilitation facility; or a motor vehicle owned and operated by a

 

senior citizen center, $10.00,  per set,  if the bus, station

 

wagon, carryall, or similarly constructed vehicle or motor vehicle

 

is designated by proper signs showing the organization operating


 

the vehicle.

 

     (h) For a vehicle owned by a nonprofit organization and used

 

to transport equipment for providing dialysis treatment to children

 

at camp; for a vehicle owned by the civil air patrol, as organized

 

under 36 USC 40301 to 40307, $10.00 per plate, if the vehicle is

 

designated by a proper sign showing the civil air patrol's name;

 

for a vehicle owned and operated by a nonprofit veterans center;

 

for a vehicle owned and operated by a nonprofit recycling center or

 

a federally recognized nonprofit conservation organization; for a

 

motor vehicle having a truck chassis and a locomotive or ship's

 

body that is owned by a nonprofit veterans organization and used

 

exclusively in parades and civic events; or for an emergency

 

support vehicle used exclusively for emergencies and owned and

 

operated by a federally recognized nonprofit charitable

 

organization, $10.00 per plate.

 

     (i) For each truck owned and operated free of charge by a bona

 

fide ecclesiastical or charitable corporation, or red cross, girl

 

scout, or boy scout organization, 65 cents per 100 pounds of the

 

empty weight of the truck.

 

     (j) For each truck, weighing 8,000 pounds or less, and not

 

used to tow a vehicle, for each privately owned truck used to tow a

 

trailer for recreational purposes only and not involved in a profit

 

making venture, and for each vehicle designed and used to tow a

 

mobile home or a trailer coach, except as provided in subdivision

 

(b), $38.00 or an amount computed according to the following

 

schedule of empty weights, whichever is greater:

 


     Empty weights                                     Per 100 pounds

     0 to 2,500 pounds........................................ $ 1.40

     2,501 to 4,000 pounds....................................   1.76

     4,001 to 6,000 pounds....................................   2.20

     6,001 to 8,000 pounds....................................   2.72

     8,001 to 10,000 pounds...................................   3.25

     10,001 to 15,000 pounds..................................   3.77

     15,001 pounds and over...................................   4.39

 

     If the tax required under subdivision (p) for a vehicle of the

 

same model year with the same list price as the vehicle for which

 

registration is sought under this subdivision is more than the tax

 

provided under the preceding provisions of this subdivision for an

 

identical vehicle, the tax required under this subdivision is not

 

less than the tax required under subdivision (p) for a vehicle of

 

the same model year with the same list price.

 

     (k) For each truck weighing 8,000 pounds or less towing a

 

trailer or any other combination of vehicles and for each truck

 

weighing 8,001 pounds or more, road tractor or truck tractor,

 

except as provided in subdivision (j) according to the following

 

schedule of elected gross weights:

 

     Elected gross weight                                       Tax

     0 to 24,000 pounds................................... $   491.00

     24,001 to 26,000 pounds..............................     558.00

     26,001 to 28,000 pounds..............................     558.00

     28,001 to 32,000 pounds..............................     649.00

     32,001 to 36,000 pounds..............................     744.00

     36,001 to 42,000 pounds..............................     874.00


     42,001 to 48,000 pounds..............................   1,005.00

     48,001 to 54,000 pounds..............................   1,135.00

     54,001 to 60,000 pounds..............................   1,268.00

     60,001 to 66,000 pounds..............................   1,398.00

     66,001 to 72,000 pounds..............................   1,529.00

     72,001 to 80,000 pounds..............................   1,660.00

     80,001 to 90,000 pounds..............................   1,793.00

     90,001 to 100,000 pounds.............................   2,002.00

     100,001 to 115,000 pounds............................   2,223.00

     115,001 to 130,000 pounds............................   2,448.00

     130,001 to 145,000 pounds............................   2,670.00

     145,001 to 160,000 pounds............................  2,894.00

     over 160,000 pounds..................................   3,117.00

 

     For each commercial vehicle registered under this subdivision,

 

$15.00 shall be deposited in a truck safety fund to be expended for

 

the purposes prescribed in section 25 of 1951 PA 51, MCL 247.675.

 

     If a truck or road tractor without trailer is leased from an

 

individual owner-operator, the lessee, whether a person, firm, or

 

corporation, shall pay to the owner-operator 60% of the tax

 

prescribed in this subdivision for the truck tractor or road

 

tractor at the rate of 1/12 for each month of the lease or

 

arrangement in addition to the compensation the owner-operator is

 

entitled to for the rental of his or her equipment.

 

     (l) For each pole trailer, semitrailer, trailer coach, or

 

trailer, the tax shall be assessed according to the following

 

schedule of empty weights:

 

     Empty weights                                              Tax


     0 to 2,499 pounds...................................... $  75.00

     2,500 to 9,999 pounds..................................   200.00

     10,000 pounds and over.................................   300.00

 

     The registration plate issued under this subdivision expires

 

only when the secretary of state reissues a new registration plate

 

for all trailers. If the secretary of state reissues a new

 

registration plate for all trailers, a person who has once paid the

 

tax for a vehicle under this subdivision is not required to pay the

 

tax for that vehicle a second time, but is required to pay only the

 

cost of the reissued plate at the rate provided in section 804(2)

 

for a standard plate. A registration plate issued under this

 

subdivision is nontransferable.

 

     (m) For each commercial vehicle used for the transportation of

 

passengers for hire except for a vehicle for which a payment is

 

made under 1960 PA 2, MCL 257.971 to 257.972, according to the

 

following schedule of empty weights:

 

     Empty weights                                     Per 100 pounds

     0 to 4,000 pounds....................................... $  1.76

     4,001 to 6,000 pounds...................................    2.20

     6,001 to 10,000 pounds..................................    2.72

     10,001 pounds and over..................................    3.25

     (n) For each motorcycle................................. $ 23.00

 

     On October 1, 1983, and October 1, 1984, the tax assessed

 

under this subdivision shall be annually revised for the

 

registrations expiring on the appropriate October 1 or after that

 

date by multiplying the tax assessed in the preceding fiscal year

 

times the personal income of Michigan for the preceding calendar


 

year divided by the personal income of Michigan for the calendar

 

year that preceded that calendar year. In performing the

 

calculations under this subdivision, the secretary of state shall

 

use the spring preliminary report of the United States department

 

of commerce or its successor agency.

 

     Beginning January 1, 1984, the registration tax for each

 

motorcycle is increased by $3.00. The $3.00 increase is not part of

 

the tax assessed under this subdivision for the purpose of the

 

annual October 1 revisions but is in addition to the tax assessed

 

as a result of the annual October 1 revisions. Beginning January 1,

 

1984, $3.00 of each motorcycle fee shall be placed in a motorcycle

 

safety fund in the state treasury and shall be used only for

 

funding the motorcycle safety education program as provided for

 

under sections 312b and 811a.

 

     (o) For each truck weighing 8,001 pounds or more, road

 

tractor, or truck tractor used exclusively as a moving van or part

 

of a moving van in transporting household furniture and household

 

effects or the equipment or those engaged in conducting carnivals,

 

at the rate of 80% of the schedule of elected gross weights in

 

subdivision (k) as modified by the operation of that subdivision.

 

     (p) After September 30, 1983, each motor vehicle of the 1984

 

or a subsequent model year as shown on the application required

 

under section 217 that has not been previously subject to the tax

 

rates of this section and that is of the motor vehicle category

 

otherwise subject to the tax schedule described in subdivision (a),

 

and each low-speed vehicle according to the following schedule

 

based upon registration periods of 12 months:


 

     (i) Except as otherwise provided in this subdivision, for the

 

first registration that is not a transfer registration under

 

section 809 and for the first registration after a transfer

 

registration under section 809, according to the following schedule

 

based on the vehicle's list price:

 

     List Price                                                 Tax

     $ 0 - $ 6,000.00....................................... $  30.00

     More than $ 6,000.00 - $ 7,000.00...................... $  33.00

     More than $ 7,000.00 - $ 8,000.00...................... $  38.00

     More than $ 8,000.00 - $ 9,000.00...................... $  43.00

     More than $ 9,000.00 - $ 10,000.00..................... $  48.00

     More than $ 10,000.00 - $ 11,000.00.................... $  53.00

     More than $ 11,000.00 - $ 12,000.00.................... $  58.00

     More than $ 12,000.00 - $ 13,000.00.................... $  63.00

     More than $ 13,000.00 - $ 14,000.00.................... $  68.00

     More than $ 14,000.00 - $ 15,000.00.................... $  73.00

     More than $ 15,000.00 - $ 16,000.00.................... $  78.00

     More than $ 16,000.00 - $ 17,000.00.................... $  83.00

     More than $ 17,000.00 - $ 18,000.00.................... $  88.00

     More than $ 18,000.00 - $ 19,000.00.................... $  93.00

     More than $ 19,000.00 - $ 20,000.00.................... $  98.00

     More than $ 20,000.00 - $ 21,000.00.................... $ 103.00

     More than $ 21,000.00 - $ 22,000.00.................... $ 108.00

     More than $ 22,000.00 - $ 23,000.00.................... $ 113.00

     More than $ 23,000.00 - $ 24,000.00.................... $ 118.00

     More than $ 24,000.00 - $ 25,000.00.................... $ 123.00

     More than $ 25,000.00 - $ 26,000.00.................... $ 128.00


     More than $ 26,000.00 - $ 27,000.00.................... $ 133.00

     More than $ 27,000.00 - $ 28,000.00.................... $ 138.00

     More than $ 28,000.00 - $ 29,000.00.................... $ 143.00

     More than $ 29,000.00 - $ 30,000.00.................... $ 148.00

 

     More than $30,000.00, the tax of $148.00 is increased by $5.00

 

for each $1,000.00 increment or fraction of a $1,000.00 increment

 

over $30,000.00. If a current tax increases or decreases as a

 

result of 1998 PA 384, only a vehicle purchased or transferred

 

after January 1, 1999 shall be assessed the increased or decreased

 

fee  tax.

 

     (ii) For the second registration, 90% of the tax assessed under

 

subparagraph (i).

 

     (iii) For the third registration, 90% of the tax assessed under

 

subparagraph (ii).

 

     (iv) For the fourth and subsequent registrations, 90% of the

 

tax assessed under subparagraph (iii).

 

     For a vehicle of the 1984 or a subsequent model year that has

 

been previously registered by a person other than the person

 

applying for registration or for a vehicle of the 1984 or a

 

subsequent model year that has been previously registered in

 

another state or country and is registered for the first time in

 

this state, the tax under this subdivision shall be determined by

 

subtracting the model year of the vehicle from the calendar year

 

for which the registration is sought. If the result is zero or a

 

negative figure, the first registration tax shall be paid. If the

 

result is 1, 2, or 3 or more, then, respectively, the second,

 

third, or subsequent registration tax shall be paid. A van that is


 

owned by an individual who uses a wheelchair or by an individual

 

who transports a resident of his or her household who uses a

 

wheelchair and for which registration plates are issued under

 

section 803d shall be assessed at the rate of 50% of the tax

 

provided for in this subdivision.

 

     (q) For a wrecker, $200.00.

 

     (r) When the secretary of state computes a tax under this

 

section, a computation that does not result in a whole dollar

 

figure shall be rounded to the next lower whole dollar when the

 

computation results in a figure ending in 50 cents or less and

 

shall be rounded to the next higher whole dollar when the

 

computation results in a figure ending in 51 cents or more, unless

 

specific taxes are specified, and the secretary of state may accept

 

the manufacturer's shipping weight of the vehicle fully equipped

 

for the use for which the registration application is made. If the

 

weight is not correctly stated or is not satisfactory, the

 

secretary of state shall determine the actual weight. Each

 

application for registration of a vehicle under subdivisions (j)

 

and (m) shall have attached to the application a scale weight

 

receipt of the vehicle fully equipped as of the time the

 

application is made. The scale weight receipt is not necessary if

 

there is presented with the application a registration receipt of

 

the previous year that shows on its face the weight of the motor

 

vehicle as registered with the secretary of state and that is

 

accompanied by a statement of the applicant that there has not been

 

a structural change in the motor vehicle that has increased the

 

weight and that the previous registered weight is the true weight.


 

     (2) A manufacturer is not exempted under this act from paying

 

ad valorem taxes on vehicles in stock or bond, except on the

 

specified number of motor vehicles registered. A dealer is exempt

 

from paying ad valorem taxes on vehicles in stock or bond.

 

     (3) Until October 1, 2009, the tax for a vehicle with an empty

 

weight over 10,000 pounds imposed under subsection (1)(a) and the

 

taxes imposed under subsection (1)(c), (d), (e), (f), (i), (j),

 

(m), (o), and (p) are each increased as follows:

 

     (a) A regulatory fee of $2.25 that shall be credited to the

 

traffic law enforcement and safety fund created in section 819a and

 

used to regulate highway safety.

 

     (b) A fee of $5.75 that shall be credited to the

 

transportation administration collection fund created in section

 

810b.

 

     (4) 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 for each registration renewed after the

 

expiration date. An application for a renewal of a registration

 

using the regular mail and postmarked before the expiration date of

 

that registration shall not be assessed a late fee. The late fee

 

collected under this subsection shall be deposited into the general

 

fund.

 

     (5) As used in this section:

 

     (a) "Gross proceeds" means that term as defined in section 1

 

of the general sales tax act, 1933 PA 167, MCL 205.51, and includes

 

the value of the motor vehicle used as part payment of the purchase


 

price as that value is agreed to by the parties to the sale, as

 

evidenced by the signed agreement executed under section 251.

 

     (b) "List price" means the manufacturer's suggested base list

 

price as published by the secretary of state, or the manufacturer's

 

suggested retail price as shown on the label required to be affixed

 

to the vehicle under  section 2 of the automobile information

 

disclosure act,  15 USC 1232, if the secretary of state has not at

 

the time of the sale of the vehicle published a manufacturer's

 

suggested retail price for that vehicle, or the purchase price of

 

the vehicle if the manufacturer's suggested base list price is

 

unavailable from the sources described in this subdivision.

 

     (c) "Purchase price" means the gross proceeds received by the

 

seller in consideration of the sale of the motor vehicle being

 

registered.