HOUSE BILL No. 5174 December 8, 1999, Introduced by Reps. Switalski, Prusi, Sheltrown, DeHart, Spade, Hale, Kelly, Shackleton, Woodward, Garcia, Rivet, Richardville and Lemmons and referred to the Committee on Transportation. A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 801 (MCL 257.801), as amended by 1998 PA 384. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 801. (1) The secretary of state shall collect the fol- 2 lowing taxes at the time of registering a vehicle, which shall 3 exempt the vehicle from all other state and local taxation, 4 except the fees and taxes provided by law to be paid by certain 5 carriers operating motor vehicles and trailers under the motor 6 carrier act, 1933 PA 254, MCL 475.1 to 479.43; the taxes imposed 7 by the motor carrier fuel tax act, 1980 PA 119, MCL 207.211 to 8 207.234;a fee or fees imposed pursuant to the local road9improvements and operations revenue act, 1987 PA 237, MCL 247.52110to 247.525;and except as otherwise provided by this act: 04658'99 TLG 2 1 (a) For a motor vehicle, including a motor home, except as 2 otherwise provided, and a pickup truck or van, which pickup truck 3 or van weighs not more than 5,000 pounds and is not taxed under 4 subdivision (p), except as otherwise provided, according to the 5 following schedule of empty weights: 6 Empty weights Fee 7 0 to 3,000 pounds...................... $ 29.00 8 3,001 to 3,500 pounds.................. 32.00 9 3,501 to 4,000 pounds.................. 37.00 10 4,001 to 4,500 pounds.................. 43.00 11 4,501 to 5,000 pounds.................. 47.00 12 5,001 to 5,500 pounds.................. 52.00 13 5,501 to 6,000 pounds.................. 57.00 14 6,001 to 6,500 pounds.................. 62.00 15 6,501 to 7,000 pounds.................. 67.00 16 7,001 to 7,500 pounds.................. 71.00 17 7,501 to 8,000 pounds.................. 77.00 18 8,001 to 8,500 pounds.................. 81.00 19 8,501 to 9,000 pounds.................. 86.00 20 9,001 to 9,500 pounds.................. 91.00 21 9,501 to 10,000 pounds................. 95.00 22 over 10,000 pounds...........$ 0.90 per 100 pounds 23 of empty weight 24 On October 1, 1983, and October 1, 1984, the tax assessed 25 under this subdivision shall be annually revised for the 26 registrations expiring on the appropriate October 1 or after that 04658'99 3 1 date by multiplying the tax assessed in the preceding fiscal year 2 times the personal income of Michigan for the preceding calendar 3 year divided by the personal income of Michigan for the calendar 4 year which preceded that calendar year. In performing the calcu- 5 lations under this subdivision, the secretary of state shall use 6 the spring preliminary report of the United States department of 7 commerce or its successor agency. A vanwhichTHAT is owned by 8 a person who uses a wheelchair or by a person who transports a 9 resident of his or her household who uses a wheelchair and for 10 which registration plates are issued pursuant to section 803d 11 shall be assessed at the rate of 50% of the tax provided for in 12 this subdivision. 13 (b) For a trailer coach attached to a motor vehicle 76 cents 14 per 100 pounds of empty weight of the trailer coach. A trailer 15 coach not TAXED under 1959 PA 243, MCL 125.1035 to 125.1043, and 16 while located on land otherwise assessable as real property under 17 the general property tax act, 1893 PA 206, MCL 211.1 to 211.157, 18 if the trailer coach is used as a place of habitation, and 19 whether or not permanently affixed to the soil, shall not be 20 exempt from real property taxes. 21 (c) For a road tractor, truck, or truck tractor owned by a 22 farmer and used exclusively in connection with the farmer's farm- 23 ing operations, or used for the transportation of the farmer and 24 the farmer's family, and not used for hire, 74 cents per 100 25 pounds of empty weight of the road tractor, truck, or truck 26 tractor. If the road tractor, truck, or truck tractor owned by a 27 farmer is also used for a nonfarming operation, the farmer shall 04658'99 4 1 be subject to the highest registration tax applicable to the 2 nonfarm use of the vehicle but shall not be subject to more than 3 1 tax rate under this act. 4 (d) For a road tractor, truck, or truck tractor owned by a 5 wood harvester and used exclusively in connection with the wood 6 harvesting operations, 74 cents per 100 pounds of empty weight of 7 the road tractor, truck, or truck tractor. A registration 8 secured by payment of the fee as prescribed in this subdivision 9 shall continue in full force and effect until the regular expira- 10 tion date of the registration. As used in this subdivision, 11 "wood harvester" includes the person or persons hauling and 12 transporting raw materials only from the forest to the mill 13 site. "Wood harvesting operations" does not include the trans- 14 portation of processed lumber. 15 (e) For a hearse or ambulance used exclusively by a licensed 16 funeral director in the general conduct of the licensee's funeral 17 business, including a hearse or ambulance whose owner is engaged 18 in the business of leasing or renting the hearse or ambulance to 19 others, $1.17 per 100 pounds of the empty weight of the hearse or 20 ambulance. 21 (f) For a motor vehicle owned and operated by this state, a 22 state institution, a municipality, a privately incorporated, non- 23 profit volunteer fire department, or a nonpublic, nonprofit col- 24 lege or university, $5.00 per set; and for each motor vehicle 25 operating under municipal franchise, weighing less than 2,500 26 pounds, 65 cents per 100 pounds of the empty weight of the motor 27 vehicle, weighing from 2,500 to 4,000 pounds, 80 cents per 100 04658'99 5 1 pounds of the empty weight of the motor vehicle, weighing 4,001 2 to 6,000 pounds, $1.00 per 100 pounds of the empty weight of the 3 motor vehicle, and weighing over 6,000 pounds, $1.25 per 100 4 pounds of the empty weight of the motor vehicle. 5 (g) For a bus including a station wagon, carryall, or simi- 6 larly constructed vehicle owned and operated by a nonprofit 7 parents' transportation corporation used for school purposes, 8 parochial school or society, church Sunday school, or any other 9 grammar school, or by a nonprofit youth organization or nonprofit 10 rehabilitation facility; or a motor vehicle owned and operated by 11 a senior citizen center, $10.00 per set, if the bus, station 12 wagon, carryall, or similarly constructed vehicle or motor vehi- 13 cle is designated by proper signs showing the organization oper- 14 ating the vehicle. 15 (h) For a vehicle owned by a nonprofit organization and used 16 to transport equipment for providing dialysis treatment to chil- 17 dren at camp; for a vehicle owned by the civil air patrol, as 18 organized under sections 1 to 8 of chapter 527, 60 Stat. 346, 36 19 U.S.C. 201 to 208, $10.00 per plate, if the vehicle is designated 20 by a proper sign showing the civil air patrol's name; for a vehi- 21 cle owned and operated by a nonprofit veterans center; for a 22 vehicle owned and operated by a nonprofit recycling center or a 23 federally recognized nonprofit conservation organization until 24 December 31, 2000; for a motor vehicle having a truck chassis and 25 a locomotive or ship's body which is owned by a nonprofit veter- 26 ans organization and used exclusively in parades and civic 27 events; or for an emergency support vehicle used exclusively for 04658'99 6 1 emergencies and owned and operated by a federally recognized 2 nonprofit charitable organization, $10.00 per plate. 3 (i) For each truck owned and operated free of charge by a 4 bona fide ecclesiastical or charitable corporation, or red cross, 5 girl scout, or boy scout organization, 65 cents per 100 pounds of 6 the empty weight of the truck. 7 (j) For each truck, weighing 8,000 pounds or less, and not 8 used to tow a vehicle, for each privately owned truck used to tow 9 a trailer for recreational purposes only and not involved in a 10 profit making venture, and for each vehicle designed and used to 11 tow a mobile home or a trailer coach, except as provided in sub- 12 division (b), $38.00 or an amount computed according to the fol- 13 lowing schedule of empty weights, whichever is greater: 14 Empty weights Per 100 pounds 15 0 to 2,500 pounds...................... $ 1.40 16 2,501 to 4,000 pounds.................. 1.76 17 4,001 to 6,000 pounds.................. 2.20 18 6,001 to 8,000 pounds.................. 2.72 19 8,001 to 10,000 pounds................. 3.25 20 10,001 to 15,000 pounds................ 3.77 21 15,001 pounds and over................. 4.39 22 If the tax required under subdivision (q) for a vehicle of 23 the same model year with the same list price as the vehicle for 24 which registration is sought under this subdivision is more than 25 the tax provided under the preceding provisions of this 26 subdivision for an identical vehicle, the tax required under this 04658'99 7 1 subdivision shall not be less than the tax required under 2 subdivision (q) for a vehicle of the same model year with the 3 same list price. 4 (k) For each truck weighing 8,000 pounds or less towing a 5 trailer or any other combination of vehicles and for each truck 6 weighing 8,001 pounds or more, road tractor or truck tractor, 7 except as provided in subdivision (j) according to the following 8 schedule of elected gross weights: 9 Elected gross weight Fee 10 0 to 24,000 pounds................... $ 491.00 11 24,001 to 26,000 pounds.............. 558.00 12 26,001 to 28,000 pounds.............. 558.00 13 28,001 to 32,000 pounds.............. 649.00 14 32,001 to 36,000 pounds.............. 744.00 15 36,001 to 42,000 pounds.............. 874.00 16 42,001 to 48,000 pounds.............. 1,005.00 17 48,001 to 54,000 pounds.............. 1,135.00 18 54,001 to 60,000 pounds.............. 1,268.00 19 60,001 to 66,000 pounds.............. 1,398.00 20 66,001 to 72,000 pounds.............. 1,529.00 21 72,001 to 80,000 pounds.............. 1,660.00 22 80,001 to 90,000 pounds.............. 1,793.00 23 90,001 to 100,000 pounds............. 2,002.00 24 100,001 to 115,000 pounds............ 2,223.00 25 115,001 to 130,000 pounds............ 2,448.00 04658'99 8 1 130,001 to 145,000 pounds............ 2,670.00 2 145,001 to 160,000 pounds............ 2,894.00 3 over 160,000 pounds.................. 3,117.00 4 For each commercial vehicle registered pursuant to this sub- 5 division $15.00 shall be deposited in a truck safety fund to be 6 expended for the purposes prescribed in section 25 of 1951 PA 51, 7 MCL 247.675. 8 If a truck or road tractor without trailer is leased from an 9 individual owner-operator, the lessee, whether a person, firm, or 10 corporation, shall pay to the owner-operator 60% of the fee pre- 11 scribed in this subdivision for the truck tractor or road tractor 12 at the rate of 1/12 for each month of the lease or arrangement in 13 addition to the compensation the owner-operator is entitled to 14 for the rental of his or her equipment. 15 (l) For each pole trailer, semitrailer, or trailer, accord- 16 ing to the following schedule of rates: 17 Empty weights Fee 18 0 to 500 pounds........................ $ 17.00 19 501 to 1,500 pounds.................... 24.00 20 1,501 pounds and over.................. 39.00 21 (m) For each commercial vehicle used for the transportation 22 of passengers for hire except for a vehicle for which a payment 23 is made pursuant to 1960 PA 2, MCL 257.971 to 257.972, according 24 to the following schedule of empty weights: 04658'99 9 1 Empty weights Per 100 pounds 2 0 to 4,000 pounds...................... $ 1.76 3 4,001 to 6,000 pounds.................. 2.20 4 6,001 to 10,000 pounds................. 2.72 5 10,001 pounds and over................. 3.25 6 (n) For each motorcycle................... $ 23.00 7 On October 1, 1983, and October 1, 1984, the tax assessed 8 under this subdivision shall be annually revised for the regis- 9 trations expiring on the appropriate October 1 or after that date 10 by multiplying the tax assessed in the preceding fiscal year 11 times the personal income of Michigan for the preceding calendar 12 year divided by the personal income of Michigan for the calendar 13 yearwhichTHAT preceded that calendar year. In performing the 14 calculations under this subdivision, the secretary of state shall 15 use the spring preliminary report of the United States department 16 of commerce or its successor agency. 17 Beginning January 1, 1984, the registration tax for each 18 motorcycle shall be increased by $3.00. The $3.00 increase shall 19 not be considered as part of the tax assessed under this subdivi- 20 sion for the purpose of the annual October 1 revisions but shall 21 be in addition to the tax assessed as a result of the annual 22 October 1 revisions. Beginning January 1, 1984, $3.00 of each 23 motorcycle fee shall be placed in a motorcycle safety fund in the 24 state treasury and shall be used only for funding the motorcycle 25 safety education program as provided for under sections 312b and 26 811a. 04658'99 10 1 (o) For each truck weighing 8,001 pounds or more, road 2 tractor, or truck tractor used exclusively as a moving van or 3 part of a moving van in transporting household furniture and 4 household effects or the equipment or those engaged in conducting 5 carnivals, at the rate of 80% of the schedule of elected gross 6 weights in subdivision (k) as modified by the operation of that 7 subdivision. 8 (p) Until October 1, 1997, for each pickup truck or van, 9 which pickup truck or van weighs not more than 5,000 pounds and 10 is owned by a business, corporation, or person other than an 11 individual, according to the following schedule of empty 12 weights: 13 Empty weights Fee 14 0 to 4,000 pounds...................... $ 39.00 15 4,001 to 4,500 pounds.................. 44.00 16 4,501 to 5,000 pounds.................. 49.00 17 (q) After September 30, 1983, each motor vehicle of the 1984 18 or a subsequent model year as shown on the application required 19 under section 217whichTHAT has not been previously subject to 20 the tax rates of this section andwhichTHAT is of the motor 21 vehicle category otherwise subject to the tax schedule described 22 in subdivision (a) and beginning October 1, 1997 each motor vehi- 23 cle previously subject to the tax schedule described in subdivi- 24 sion (p) according to the following schedule based upon registra- 25 tion periods of 12 months: 04658'99 11 1 (i) Except as otherwise provided in this subdivision, for 2 the first registration, which is not a transfer registration 3 under section 809 and for the first registration after a transfer 4 registration under section 809, according to the following sched- 5 ule based on the vehicle's list price: 6 List Price Tax 7 $0 - $6,000.00............................ $ 30.00 8 More than $6,000.00 - $7,000.00........... $ 33.00 9 More than $7,000.00 - $8,000.00........... $ 38.00 10 More than $8,000.00 - $9,000.00........... $ 43.00 11 More than $9,000.00 - $10,000.00.......... $ 48.00 12 More than $10,000.00 - $11,000.00......... $ 53.00 13 More than $11,000.00 - $12,000.00......... $ 58.00 14 More than $12,000.00 - $13,000.00......... $ 63.00 15 More than $13,000.00 - $14,000.00......... $ 68.00 16 More than $14,000.00 - $15,000.00......... $ 73.00 17 More than $15,000.00 - $16,000.00......... $ 78.00 18 More than $16,000.00 - $17,000.00......... $ 83.00 19 More than $17,000.00 - $18,000.00......... $ 88.00 20 More than $18,000.00 - $19,000.00......... $ 93.00 21 More than $19,000.00 - $20,000.00......... $ 98.00 22 More than $20,000.00 - $21,000.00......... $103.00 23 More than $21,000.00 - $22,000.00......... $108.00 24 More than $22,000.00 - $23,000.00......... $113.00 25 More than $23,000.00 - $24,000.00......... $118.00 04658'99 12 1 More than $24,000.00 - $25,000.00......... $123.00 2 More than $25,000.00 - $26,000.00......... $128.00 3 More than $26,000.00 - $27,000.00......... $133.00 4 More than $27,000.00 - $28,000.00......... $138.00 5 More than $28,000.00 - $29,000.00......... $143.00 6 More than $29,000.00 - $30,000.00......... $148.00 7 More than $30,000.00, the feeshallof $148.00 shall be 8 increased by $5.00 for each $1,000.00 increment or fraction of a 9 $1,000.00 increment over $30,000.00. If a current fee increases 10 or decreases as a result ofthe 1998 amendatory act that added11this sentence1998 PA 384, only a vehicle purchased or trans- 12 ferred afterthe effective date of the 1998 amendatory act that13added this sentenceJANUARY 1, 1999 shall be assessed the 14 increased or decreased fee. BEGINNING 90 DAYS AFTER THE DATE 15 THAT THE AMENDATORY ACT THAT ADDED THIS SENTENCE IS ENACTED, THE 16 TAX IMPOSED UNDER THIS SUBPARAGRAPH SHALL BE CALCULATED USING THE 17 PURCHASE PRICE OR THE BLUEBOOK VALUE OF THE VEHICLE, WHICHEVER IS 18 GREATER, IN LIEU OF THE LIST PRICE. 19 (ii) For the second registration, 90% of the tax assessed 20 under subparagraph (i). 21 (iii) For the third registration, 90% of the tax assessed 22 under subparagraph (ii). 23 (iv) For the fourth and subsequent registrations, 90% of the 24 tax assessed under subparagraph (iii). 25 For a vehicle of the 1984 or a subsequent model yearwhich26 THAT has been previously registered by a person other than the 27 person applying for registration or for a vehicle of the 1984 or 04658'99 13 1 a subsequent model yearwhichTHAT has been previously 2 registered in another state or country and is registered for the 3 first time in this state, the tax under this subdivision shall be 4 determined by subtracting the model year of the vehicle from the 5 calendar year for which the registration is sought. If the 6 result is zero or a negative figure, the first registration tax 7 shall be paid. If the result is 1, 2, or 3 or more, then, 8 respectively, the second, third, or subsequent registration tax 9 shall be paid. A vanwhichTHAT is owned by a person who uses 10 a wheelchair or by a person who transports a resident of his or 11 her household who uses a wheelchair and for which registration 12 plates are issued pursuant to section 803d shall be assessed at 13 the rate of 50% of the tax provided for in this subdivision. 14 (r) For a wrecker, $200.00. 15 (s) When the secretary of state computes a tax under this 16 section, a computationwhichTHAT does not result in a whole 17 dollar figure shall be rounded to the next lower whole dollar 18 when the computation results in a figure ending in 50 cents or 19 less and shall be rounded to the next higher whole dollar when 20 the computation results in a figure ending in 51 cents or more, 21 unless specific fees are specified, and may accept the 22 manufacturer's shipping weight of the vehicle fully equipped for 23 the use for which the registration application is made. If the 24 weight is not correctly stated or is not satisfactory, the secre- 25 tary of state shall determine the actual weight. Each applica- 26 tion for registration of a vehicle under subdivisions (j) and (m) 27 shall have attached to the application a scale weight receipt of 04658'99 14 1 the vehicle fully equipped as of the time the application is 2 made. The scale weight receipt is not necessary if there is 3 presented with the application a registration receipt of the pre- 4 vious yearwhichTHAT shows on its face the weight of the motor 5 vehicle as registered with the secretary of state andwhich6 THAT is accompanied by a statement of the applicant that there 7 has not been a structural change in the motor vehiclewhich8 THAT has increased the weight and that the previous registered 9 weight is the true weight. 10 (2) A manufacturer is not exempted under this act from 11 paying ad valorem taxes on vehicles in stock or bond, except on 12 the specified number of motor vehicles registered. A dealer is 13 exempt from paying ad valorem taxes on vehicles in stock or 14 bond. 15 (3) The fee for a vehicle with an empty weight over 10,000 16 pounds imposed pursuant to subsection (1)(a) and the fees imposed 17 pursuant to subsection (1)(b), (c), (d), (e), (f), (i), (j), (m), 18 (o), and (q) shall each be increased by $5.00. This increase 19 shall be credited to the Michigan transportation fund and used to 20 defray the costs of processing the registrations under this 21 section. 22 (4) As used in this section: 23 (A) "BLUEBOOK VALUE" MEANS THE MOST RECENTLY PUBLISHED 24 VOLUME OF THE N.A.D.A. OFFICIAL USED CAR GUIDE PUBLISHED BY THE 25 NATIONAL AUTOMOBILE DEALERS ASSOCIATION. 26 (B)(a)"Gross proceeds" means gross proceeds as defined 27 in section 1 of the general sales tax act, 1933 PA 167, MCL 04658'99 15 1 205.51. However, gross proceedsshallinclude the value of the 2 motor vehicle used as part payment of the purchase price as that 3 value is agreed to by the parties to the sale, as evidenced by 4 the signed agreement executed pursuant to section 251. 5 (C)(b)"List price" means the manufacturer's suggested 6 base list price as published by the secretary of state, or the 7 manufacturer's suggested retail price as shown on the label 8 required to be affixed to the vehicle under section 3 of the 9 automobile information disclosure act, Public Law 85-506, 10 15 U.S.C. 1232, if the secretary of state has not at the time of 11 the sale of the vehicle published a manufacturer's suggested 12 retail price for that vehicle, or the purchase price of the vehi- 13 cle if the manufacturer's suggested base list price is unavail- 14 able from the sources described in this subdivision. 15 (D)(c)"Purchase price" means the gross proceeds received 16 by the seller in consideration of the sale of the motor vehicle 17 being registered. 04658'99 Final page. 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