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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| MOTOR VEHICLE REGISTRATION |
LEGAL CITATION: |
M.C.L. 257.801-257.810; 1949 PA 300; Sec. 9, Art. IX, state Constitution. |
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| YEAR ADOPTED: |
1905 |
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| BASIS OF TAX: |
In lieu of general property and other taxes. |
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| MEASURE OF TAX (BASE): |
Weight of vehicle - or the type or sales price of vehicle. Elected gross vehicle weight (the empty weight of a vehicle or combination of vehicles plus the weight of the maximum load the owner has elected to carry) for large trucks. |
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| RATE: |
1. Personal passenger vehicles purchased new, or vehicles of the 1984 model year or later which are subsequently resold as used, are assessed on the following schedule:
| Base List Price |
Tax in 1st Year of Ownership |
| Up to $6,000 |
$30 |
| $6,001 to $7,000 |
$33 |
| $7,001 to $30,000 |
$33, plus $5 for each $1,000 above $7,000 base list price. |
| More than $30,000 |
0.5% of base list price. |
The above rates are adjusted annually in accordance with increase in state personal income. During the 2nd, 3rd, and 4th years, the tax on such vehicles is reduced by 10% from the prior year's level and remains constant thereafter.
Additional charges and service fees are levied for special plates bearing insignia (e.g. military veterans) and pictorial scenes of state significance (e.g. the Mackinac Bridge). Also, plates bearing special messages and nicknames ("vanity plates") are available at additional cost.
Pickup trucks and vans under 5,000 lb., passenger cars, and motor homes purchased before October 1, 1983 are assessed on the basis of the following schedule in lieu of a value tax:
| 0- 3,000 lb. $29 |
5,001- 5,500 lb. $52 |
7,501- 8,000 lb. $77 |
| 3,001- 3,500 lb. $32 |
5,501- 6,000 lb. $57 |
8,001- 8,500 lb. $81 |
| 3,501- 4,000 lb. $37 |
6,001- 6,500 lb. $62 |
8,501- 9,000 lb. $86 |
| 4,001- 4,500 lb. $43 |
6,501- 7,000 lb. $67 |
9,001- 9,500 lb. $91 |
| 4,501- 5,000 lb. $47 |
7,001- 7,500 lb. $71 |
9,501-10,000 lb. $95 |
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Over 10,000 lb. add $.90/100 lb. |
2. Varied rates for specialized vehicles such as buses and taxicabs, motorcycles, certain farm equipment, ambulances and hearses, moving vans.
3. Commercial pickup trucks under 5,000 lb.: 0-4,000 lb. $39; 4,001-4500 lb. $44; 4,501-5,000 lb. $49.
4. Trucks weighing 8,000 lb. or less and tow trucks ($38 minimum; fee per 100 lb.):
| 0- 2,500 lb. $1.40 |
8,001-10,000 lb. $3.25 |
| 2,501- 4,000 lb. $1.76 |
10,001-15,000 lb. $3.77 |
| 4,001- 6,000 lb. $2.20 |
Over 15,000 lb. $4.39 |
| 6,001- 8,000 lb. $2.72 |
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5. For trucks weighing 8,000 lb. or less towing a trailer or for trucks weighing 8,001 lb. and over, road tractors, and truck tractors, a flat fee on elected gross weight (shown here in lbs.):
| 0- 24,000: $491 |
48,001- 54,000: $1,135 |
100,001-115,000: $2,223 |
| 24,001- 26,000: $558 |
54,001- 60,000: $1,268 |
115,001-130,000: $2,448 |
| 26,001- 28,000: $558 |
60,001- 66,000: $1,398 |
130,001-145,000: $2,670 |
| 28,001- 32,000: $649 |
66,001- 72,000: $1,529 |
145,001-160,000: $2,894 |
| 32,001- 36,000: $744 |
72,001- 80,000: $1,660 |
Over 160,000: $3,117 |
| 36,001- 42,000: $874 |
80,001- 90,000: $1,793 |
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| 42,001- 48,000: $1,005 |
90,001-100,000: $2,002 |
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| ADMINISTRATION: |
Michigan Department of State; certain fees, Michigan Department of Natural Resources. |
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| REPORT AND PAYMENT: |
Registration expires annually on owner's birthday, except for certain commercial vehicles and trailers owned by "persons" other than individuals (last day of Feb.), for motorcycles (March 31), and for historic vehicles (on April 15 in the 5th year after the date of issue). Tax due with new registration. |
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| DISPOSITION: |
Michigan Transportation Fund; certain fees, Scrap Tire Regulation Fund. |
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2004-05 COLLECTIONS:
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$866,580,000 |
Motor Vehicle Registrations: Weight versus Value
Until 1983, automobile registration fees were based on the weight and age of the vehicle. These fees were determined using a schedule of fees that required occasional revision to reflect inflation, changing funding needs, and automobile market changes. Automobile registration fees were not a high growth item prior to 1983. Public Act 439 of 1982 changed the basis for collecting automobile registration fees from weight-based to price-based. Individual owners of motor vehicles built since 1984 pay an initial registration fee of 0.5% of the list price of the vehicle (the base sticker price) for the first registration, with a minimum fee of $30. The fees decrease by 10% for each of the next three years and then remain constant.
Registration fee amounts for owners of used automobiles depend on the model year of the vehicle. Registration fees on automobiles of model years prior to 1984 continue to be based on weight. Registration fees on automobiles of model years 1984 or later are price- and age-based.
Because they are based on the vehicle price, motor vehicle ad valorem tax revenues depend on the number of vehicle registrations, the age of the autos, and the price of the vehicles. Changing registration fees from a weight-based system to a price-based system fairly effectively protects the state from the erosion of revenues experienced as cars became lighter. As the price of automobiles increases, revenues increase to keep pace with inflation. |
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| Motor Vehicle Registration Tax Law Changes |
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| Historic Michigan Motor Vehicle Registration Tax Revenue |
Last Updated January 10, 2007
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