SENATE BILL No. 1053

January 30, 2002, Introduced by Senator MC COTTER and referred to the Committee on

Government Operations.

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending section 801 (MCL 257.801), as amended by 2000 PA

502.

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; and except as otherwise provided by this act:

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

10 otherwise provided, and a pickup truck or van , which pickup

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1 truck or van THAT weighs not more than 5,000 pounds, and is not

2 taxed under subdivision (p), except as otherwise provided,

3 according to the following schedule of empty weights:

4 Empty weights Fee

5 0 to 3,000 pounds...................................$ 29.00

6 3,001 to 3,500 pounds............................... 32.00

7 3,501 to 4,000 pounds............................... 37.00

8 4,001 to 4,500 pounds............................... 43.00

9 4,501 to 5,000 pounds............................... 47.00

10 5,001 to 5,500 pounds............................... 52.00

11 5,501 to 6,000 pounds............................... 57.00

12 6,001 to 6,500 pounds............................... 62.00

13 6,501 to 7,000 pounds............................... 67.00

14 7,001 to 7,500 pounds............................... 71.00

15 7,501 to 8,000 pounds............................... 77.00

16 8,001 to 8,500 pounds............................... 81.00

17 8,501 to 9,000 pounds............................... 86.00

18 9,001 to 9,500 pounds............................... 91.00

19 9,501 to 10,000 pounds.............................. 95.00

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

21 of empty weight

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

23 under this subdivision shall be annually revised for the regis-

24 trations expiring on the appropriate October 1 or after that date

25 by multiplying the tax assessed in the preceding fiscal year

26 times the personal income of Michigan for the preceding calendar

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1 year divided by the personal income of Michigan for the calendar

2 year which preceded that calendar year. In performing the calcu-

3 lations under this subdivision, the secretary of state shall use

4 the spring preliminary report of the United States department of

5 commerce or its successor agency. A van which is owned by a

6 person who uses a wheelchair or by a person who transports a res-

7 ident of his or her household who uses a wheelchair and for which

8 registration plates are issued pursuant to section 803d shall be

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

10 subdivision.

11 (b) For a trailer coach attached to a motor vehicle, 76

12 cents per 100 pounds of empty weight of the trailer coach. A

13 trailer coach not under 1959 PA 243, MCL 125.1035 to 125.1043,

14 and while located on land otherwise assessable as real property

15 under the general property tax act, 1893 PA 206, MCL 211.1 to

16 211.157, if the trailer coach is used as a place of habitation,

17 and whether or not permanently affixed to the soil, shall not be

18 exempt from real property taxes.

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

20 farmer and used exclusively in connection with a farming opera-

21 tion, including a farmer hauling livestock or farm equipment for

22 other farmers for remuneration in kind or in labor, but not for

23 money, or used for the transportation of the farmer and the

24 farmer's family, and not used for hire, 74 cents per 100 pounds

25 of empty weight of the road tractor, truck, or truck tractor. If

26 the road tractor, truck, or truck tractor owned by a farmer is

27 also used for a nonfarming operation, the farmer shall be subject

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1 to the highest registration tax applicable to the nonfarm use of

2 the vehicle but shall not be subject to more than 1 tax rate

3 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 or a truck used exclusively to haul milk

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

8 pounds of empty weight of the road tractor, truck, or truck

9 tractor. A registration secured by payment of the fee as pre-

10 scribed in this subdivision shall continue in full force and

11 effect until the regular expiration date of the registration. As

12 used in this subdivision, "wood harvester" includes the person or

13 persons hauling and transporting raw materials only from the

14 forest to the mill site. "Wood AS USED IN THIS SUBDIVISION,

15 "WOOD harvesting operations" does not include the transportation

16 of processed lumber.

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

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

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

20 in the business of leasing or renting the hearse or ambulance to

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

22 ambulance.

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

24 state institution, a municipality, a privately incorporated, non-

25 profit volunteer fire department, or a nonpublic, nonprofit col-

26 lege or university, $5.00 per set; and for each motor vehicle

27 operating under municipal franchise, weighing less than 2,500

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1 pounds, 65 cents per 100 pounds of the empty weight of the motor

2 vehicle, weighing from 2,500 to 4,000 pounds, 80 cents per 100

3 pounds of the empty weight of the motor vehicle, weighing 4,001

4 to 6,000 pounds, $1.00 per 100 pounds of the empty weight of the

5 motor vehicle, and weighing over 6,000 pounds, $1.25 per 100

6 pounds of the empty weight of the motor vehicle.

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

8 larly constructed vehicle owned and operated by a nonprofit

9 parents' transportation corporation used for school purposes,

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

11 grammar school, or by a nonprofit youth organization or nonprofit

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

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

14 wagon, carryall, or similarly constructed vehicle or motor vehi-

15 cle is designated by proper signs showing the organization oper-

16 ating the vehicle.

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

18 to transport equipment for providing dialysis treatment to chil-

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

20 organized under sections 1 to 8 of chapter 527, 60 Stat. 346, 36

21 U.S.C. 201 to 208, $10.00 per plate, if the vehicle is designated

22 by a proper sign showing the civil air patrol's name; for a vehi-

23 cle owned and operated by a nonprofit veterans center; for a

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

25 federally recognized nonprofit conservation organization; for a

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

27 body which is owned by a nonprofit veterans organization and used

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1 exclusively in parades and civic events; or for an emergency

2 support vehicle used exclusively for emergencies and owned and

3 operated by a federally recognized nonprofit charitable organiza-

4 tion, $10.00 per plate.

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

6 bona fide ecclesiastical or charitable corporation, or red cross,

7 girl scout, or boy scout organization, 65 cents per 100 pounds of

8 the empty weight of the truck.

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

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

11 a trailer for recreational purposes only and not involved in a

12 profit making venture, and for each vehicle designed and used to

13 tow a mobile home or a trailer coach, except as provided in sub-

14 division (b), $38.00 or an amount computed according to the fol-

15 lowing schedule of empty weights, whichever is greater:

16 Empty weights Per 100 pounds

17 0 to 2,500 pounds...................... $ 1.40

18 2,501 to 4,000 pounds.................. 1.76

19 4,001 to 6,000 pounds.................. 2.20

20 6,001 to 8,000 pounds.................. 2.72

21 8,001 to 10,000 pounds................. 3.25

22 10,001 to 15,000 pounds................ 3.77

23 15,001 pounds and over................. 4.39

24 If the tax required under subdivision (q) (P) for a vehi-

25 cle of the same model year with the same list price as the

26 vehicle for which registration is sought under this subdivision

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1 is more than the tax provided under the preceding provisions of

2 this subdivision for an identical vehicle, the tax required under

3 this subdivision shall not be less than the tax required under

4 subdivision (q) (P) for a vehicle of the same model year with

5 the same list price.

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

7 trailer or any other combination of vehicles and for each truck

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

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

10 schedule of elected gross weights:

11 Elected gross weight Fee

12 0 to 24,000 pounds................... $ 491.00

13 24,001 to 26,000 pounds............. 558.00

14 26,001 24,001 to 28,000 pounds..... 558.00

15 28,001 to 32,000 pounds.............. 649.00

16 32,001 to 36,000 pounds.............. 744.00

17 36,001 to 42,000 pounds.............. 874.00

18 42,001 to 48,000 pounds.............. 1,005.00

19 48,001 to 54,000 pounds.............. 1,135.00

20 54,001 to 60,000 pounds.............. 1,268.00

21 60,001 to 66,000 pounds.............. 1,398.00

22 66,001 to 72,000 pounds.............. 1,529.00

23 72,001 to 80,000 pounds.............. 1,660.00

24 80,001 to 90,000 pounds.............. 1,793.00

25 90,001 to 100,000 pounds............. 2,002.00

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1 100,001 to 115,000 pounds............ 2,223.00

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

3 130,001 to 145,000 pounds............ 2,670.00

4 145,001 to 160,000 pounds............ 2,894.00

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

6 For each commercial vehicle registered pursuant to this sub-

7 division $15.00 shall be deposited in a truck safety fund to be

8 expended for the purposes prescribed in section 25 of 1951 PA 51,

9 MCL 247.675.

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

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

12 corporation, shall pay to the owner-operator 60% of the fee pre-

13 scribed in this subdivision for the truck tractor or road tractor

14 at the rate of 1/12 for each month of the lease or arrangement in

15 addition to the compensation the owner-operator is entitled to

16 for the rental of his or her equipment.

17 (l) For each pole trailer, semitrailer, or trailer, accord-

18 ing to the following schedule of rates EMPTY WEIGHTS:

19 Empty weights Fee

20 0 to 500 pounds........................ $ 17.00

21 501 to 1,500 pounds.................... 24.00

22 1,501 pounds and over.................. 39.00

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

24 of passengers for hire except for a vehicle for which a payment

25 is made pursuant to 1960 PA 2, MCL 257.971 to 257.972, according

26 to the following schedule of empty weights:

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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 year which preceded that calendar year. In performing the calcu-

14 lations under this subdivision, the secretary of state shall use

15 the spring preliminary report of the United States department of

16 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

19 shall not be considered as part of the tax assessed under this

20 subdivision for the purpose of the annual October 1 revisions but

21 shall be in addition to the tax assessed as a result of the

22 annual October 1 revisions. Beginning January 1, 1984, $3.00 of

23 each motorcycle fee shall be placed in a motorcycle safety fund

24 in the state treasury and shall be used only for funding the

25 motorcycle safety education program as provided for under

26 sections 312b and 811a.

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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 (P) (q) After September 30, 1983, each motor vehicle of

18 the 1984 or a subsequent model year as shown on the application

19 required under section 217 which has not been previously subject

20 to the tax rates of this section and which is of the motor vehi-

21 cle category otherwise subject to the tax schedule described in

22 subdivision (a), beginning October 1, 1997 each motor vehicle

23 previously subject to the tax schedule described in subdivision

24 (p), and each low-speed vehicle according to the following

25 schedule based upon registration periods of 12 months:

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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

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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 fee of $148.00 shall be increased

8 by $5.00 for each $1,000.00 increment or fraction of a $1,000.00

9 increment over $30,000.00. If a current fee increases or

10 decreases as a result of the 1998 amendatory act that added this

11 sentence 1998 PA 384, only a vehicle purchased or transferred

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

13 decreased fee.

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

15 under subparagraph (i).

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

17 under subparagraph (ii).

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

19 tax assessed under subparagraph (iii).

20 For a vehicle of the 1984 or a subsequent model year which

21 THAT has been previously registered by a person other than the

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

23 a subsequent model year which THAT has been previously regis-

24 tered in another state or country and is registered for the first

25 time in this state, the tax under this subdivision shall be

26 determined by subtracting the model year of the vehicle from the

27 calendar year for which the registration is sought. If the

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1 result is zero or a negative figure, the first registration tax

2 shall be paid. If the result is 1, 2, or 3 or more, then,

3 respectively, the second, third, or subsequent registration tax

4 shall be paid. A van which is owned by a person who uses a

5 wheelchair or by a person who transports a resident of his or her

6 household who uses a wheelchair and for which registration plates

7 are issued pursuant to section 803d shall be assessed at the rate

8 of 50% of the tax provided for in this subdivision.

9 (Q) (r) For a wrecker, $200.00.

10 (R) (s) When the secretary of state computes a tax under

11 this section, a computation which THAT does not result in a

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

13 dollar when the computation results in a figure ending in 50

14 cents or less and shall be rounded to the next higher whole

15 dollar when the computation results in a figure ending in 51

16 cents or more, unless specific fees are specified, and THE SECRE-

17 TARY OF STATE may accept the manufacturer's shipping weight of

18 the vehicle fully equipped for the use for which the registration

19 application is made. If the weight is not correctly stated or is

20 not satisfactory, the secretary of state shall determine the

21 actual weight. Each application for registration of a vehicle

22 under subdivisions (j) and (m) shall have attached to the appli-

23 cation a scale weight receipt of the vehicle fully equipped as of

24 the time the application is made. The scale weight receipt is

25 not necessary if there is presented with the application a regis-

26 tration receipt of the previous year which shows on its face the

27 weight of the motor vehicle as registered with the secretary of

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1 state and which is accompanied by a statement of the applicant

2 that there has not been a structural change in the motor vehicle

3 which has increased the weight and that the previous registered

4 weight is the true weight.

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

6 paying ad valorem taxes on vehicles in stock or bond, except on

7 the specified number of motor vehicles registered. A dealer is

8 exempt from paying ad valorem taxes on vehicles in stock or

9 bond.

10 (3) The fee for a vehicle with an empty weight over 10,000

11 pounds imposed pursuant to subsection (1)(a) and the fees imposed

12 pursuant to subsection (1)(b), (c), (d), (e), (f), (i), (j), (m),

13 (o), and (q) (P) shall each be increased by $5.00. This

14 increase shall be credited to the Michigan transportation fund

15 and used to defray the costs of processing the registrations

16 under this section.

17 (4) As used in this section:

18 (a) "Gross proceeds" means gross proceeds as defined in sec-

19 tion 1 of the general sales tax act, 1933 PA 167, MCL 205.51.

20 However, gross proceeds shall include the value of the motor

21 vehicle used as part payment of the purchase price as that value

22 is agreed to by the parties to the sale, as evidenced by the

23 signed agreement executed pursuant to section 251.

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

25 list price as published by the secretary of state, or the

26 manufacturer's suggested retail price as shown on the label

27 required to be affixed to the vehicle under section 3 of the

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1 automobile information disclosure act, Public Law 85-506,

2 15 U.S.C. 1232, if the secretary of state has not at the time of

3 the sale of the vehicle published a manufacturer's suggested

4 retail price for that vehicle, or the purchase price of the vehi-

5 cle if the manufacturer's suggested base list price is unavail-

6 able from the sources described in this subdivision.

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

8 the seller in consideration of the sale of the motor vehicle

9 being registered.

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