AB 582

Under current law, any city, village, or town (municipality) or county may, by

ordinance, impose an annual motor vehicle registration fee on most automobiles and

light-duty trucks customarily kept in the municipality or county. The Department

of Transportation (DOT) collects this local registration fee, which is in addition to the

state registration fee, at the time DOT collects the state registration fee and remits

the local registration fee, minus administrative costs of collection, to the applicable

municipality or county. The local registration fee may only be used by a municipality

or county for transportation purposes.

This bill eliminates, after a phase-out period, the authority of municipalities

and counties to impose the local registration fee. After the bill becomes effective, a

municipality or county cannot impose a new local registration fee or modify an

existing local registration fee. For those municipalities and counties that already

have a local registration fee when the bill becomes effective, collection of the fee must

cease within about 18 months after the bill's effective date and the authority to

impose the fee is thereafter terminated.