AB 295

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 requires an ordinance imposing a local registration fee to be ratified

by the electors at a referendum held in the municipality or county before the

ordinance may take effect. The question on the referendum ballot must specify the

amount of the local registration fee. If the local registration fee is approved by

referendum, the amount of the local registration fee cannot thereafter be changed

unless the new fee amount is adopted by ordinance and approved by referendum.

If a municipality or county has in effect an ordinance imposing a local registration

fee prior to the effective date of this bill, that ordinance may remain valid and in

effect without ratification by referendum only until the next general election. After

the next general election, any preexisting local registration fee becomes invalid until

it is ratified by referendum.