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HB 1578

Improving community preparedness, response, recovery, and resilience to wildland fire health and safety impacts in areas of increasing population density, including in the wildland urban interface.

2023-2024 Regular Session Introduced by Shelley Kloba and 8 co-sponsors

HB 1578 exempts abandoned vehicles transferred to commercial tow services from motor vehicle excise tax, enabling clear title, registration, plate removal, and streamlined disposal.

Effective date 7/23/2023.
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Bill Summary · HB 1578

Summary — HB 1578 (North Dakota)

AN ACT to create and enact a new subsection to section 57-40.3-04 and to amend subsection 2 of section 23.1-15-07, N.D.C.C.

Main purpose

HB 1578 clarifies title/registration procedures and creates an explicit motor vehicle excise tax exemption for abandoned motor vehicles that are taken into custody by a commercial towing service and are not reclaimed by their owner.

Key provisions

  • Amends N.D.C.C. § 23.1-15-07(2):

    • Confirms that when a commercial towing service takes custody of an abandoned motor vehicle that is not reclaimed under § 23.1-15-06, the towing service may obtain a release from the Department of Transportation (DOT) that is sufficient title to dispose of the vehicle.
    • Authorizes the towing service to register the vehicle and receive a certificate of title that is free and clear of liens and ownership claims.
    • Requires removal and destruction of the license plates displayed on the abandoned vehicle upon issuance of the new title.

  • Creates a new subsection in N.D.C.C. § 57-40.3-04:

    • Explicitly exempts from motor vehicle excise tax (the tax imposed under § 57-40.3-02) any motor vehicle transferred under subsection 2 of § 23.1-15-07 (i.e., vehicles released to towing services as unclaimed/abandoned).

Who is affected

  • Commercial towing services: will be able to obtain DOT releases/titles for unclaimed abandoned vehicles without incurring motor vehicle excise tax, simplifying disposition and resale.
  • Original vehicle owners: if a vehicle is unclaimed and transferred under these procedures, the owner will not be subject to excise tax at the time the towing company registers or titles the vehicle for disposal.
  • Department of Transportation and motor vehicle/title offices: will implement the release/title process and enforce plate-removal requirements.
  • State and local governments: potential reduction in excise tax receipts associated with these particular transferred vehicles.

Fiscal/administrative impact

  • Likely small recurring revenue loss to the state (and possibly local governments) because vehicles transferred under this process are explicitly exempted from the excise tax that otherwise might have been assessed.
  • Administrative impact on DOT/vehicle title offices and towing-related enforcement may be minimal but could require procedural updates to process releases and destroyed-plate documentation.

Procedural / timeline notes

  • Introduced: December 11, 2024.
  • Read first time: March 12, 2025; referred to Public Health.
  • Filed with Secretary of State (reported): March 31, 2025.
  • Legislative status reported in the provided record: Died in House Committee at sine die adjournment (May 5, 2025).
    • (Note: source documents include multiple procedural entries; the above reflects the status noted in the bill record provided.)

Practical effect

HB 1578 seeks to remove a tax barrier and provide clearer title/registration mechanics for commercial tow operators handling unclaimed abandoned vehicles, streamlining disposal and resale while explicitly preventing assessment of motor vehicle excise tax in those circumstances.

Compiled from official sources — confirm details with the bill’s official record.

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