TACF REVENUE S.B. 210 & 211: ENROLLED SUMMARY


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Senate Bills 210 and 211 (as enrolled)
Sponsor: Senator Michael Switalski
Committee: Appropriations


Date Completed: 9-26-07

CONTENT


The bills would amend the Michigan Vehicle Code to require that revenue from expedited title services ($5 per transaction) and vehicle registration transfers ($8 per transaction) be deposited into the Transportation Administration Collection Fund (TACF), instead of the Michigan Transportation Fund (MTF), for three additional years.


Under the Code, all $5 expeditious title fees and $8 registration transfer fees that were collected from October 1, 2004, through September 30, 2006, had to be deposited into the TACF. The Code requires these fees to be deposited into the MTF beginning on October 1, 2006. The bills would require the expeditious title fees (under Senate Bill 210) and the registration transfer fees (under Senate Bill 211) to be deposited into the TACF until September 30, 2008.


MCL 257.806 (S.B. 210) 257.809 (S.B. 211)

FISCAL IMPACT
Before October 1, 2004, the revenue from the expedited title fee ($5 per transaction) and from the registration transfer fee ($8 per transaction) was deposited into the Michigan Transportation Fund. Under Public Acts 141 and 179 of 2005, the revenue from both fees was shifted to the TACF until October 1, 2006. Based on transaction data supplied by the Department of State for FY 2005-06, the expedited title fee generates an estimated $1.1 million annually while the registration transfer fee generates about $8.9 million annually.




Under the bills, the revenue from these two fees, which generate an estimated $10.0 million annually, would continue to be deposited into the Transportation Administration Collection Fund, instead of the MTF, until September 30, 2008. The redirection of $10.0 million from the MTF to the TACF would have an impact on recipients of MTF revenue in the following amounts in FY 2006-07:

-- Comprehensive Transportation Fund: ($1.0 million) -- State Trunkline Fund: ($3.5 million) -- County road commissions: ($3.5 million) -- Cities and villages: ($2.0 million)


The FY 2006-07 appropriation for the Department of State assumes the continuation of the funding shift to the TACF contemplated in the bills. The TACF revenue from the two fees for FY 2006-07 is estimated at $10.0 million.


Fiscal Analyst: Joe Carrasco

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb210&211/0708