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HB 6181

Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends sec. 806 of 1949 PA 300 (MCL 257.806).

2023-2024 Regular Session Introduced by Phil Skaggs

Creates a new Motor Vehicle Sales Finance Act Fund and same-day dealer title transfer fee to fund administration of the MVSFA.

placed on third reading
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Bill Summary · HB 6181

Summary — HB 6181 (Substitute H-1)

Title: Vehicles: title; requirements for transfer of title by a dealer; provide for. (Amends MCL 257.806)

Status: Substitute (H‑1) adopted; placed on third reading. Introduced Nov 26, 2024 by Rep. Phil Skaggs; substitute adopted Dec 13, 2024. Act would not take effect unless House Bill 5354 of the 102nd Legislature is also enacted.

Purpose / intent

To (1) revise fees and surcharges associated with vehicle certificates of title, (2) create a dedicated fund to support administration of Michigan’s Motor Vehicle Sales Finance Act (MVSFA), and (3) require dealers to remit an additional per‑transfer fee to finance that administration — with specified start dates, adjustments, and limited exemptions.

Key provisions (Substitute H‑1)

  • Title application fees (temporary):

    • Through Oct 1, 2027, a certificate of title or duplicate requires a $10 application fee. A request for special expeditious treatment adds $5.
    • A $3 service fee is collected for each title issued and deposited into the Transportation Administration Collection Fund through Oct 1, 2027.
    • The $5 expeditious fee is deposited into the same Transportation fund through Oct 1, 2027.

  • Special identifying number:

    • $10 fee for applications for a special identifying number (sec. 230).

  • Tire disposal surcharge:

    • Through Dec 31, 2027, anyone applying for a certificate (including salvage or scrap titles) pays a $1.50 tire disposal surcharge per certificate/duplicate; proceeds deposited into the Scrap Tire Regulatory Fund (NREPA MCL 324.16908).

  • Dealer transfer fee and MVSFA fund (new):

    • Beginning Jan 1, 2026, each dealer submitting an application for title for a sale or lease must submit an additional $3 per title to the Secretary of State.
    • Proceeds are deposited into a newly created Motor Vehicle Sales Finance Act Fund in the state treasury.
    • The Department of Insurance and Financial Services (DIFS) administers the fund; monies are invested, interest credited, and funds do not lapse to the general fund. Expenditures by DIFS are by appropriation to administer the MVSFA.

  • Biennial fee adjustment:

    • No later than July 1, 2028 and every two years thereafter the DIFS director shall adjust the dealer fee (rounded to nearest whole dollar) as needed to cover DIFS’s reasonably anticipated MVSFA administration costs, but the fee may not exceed $5. Adjusted fee takes effect Jan 1 following the adjustment; DIFS must notify the SOS and dealers (via bulletin concurrent with the MV documentary prep fee notice).

  • Dealer exemption:

    • Beginning Mar 1, 2026, the section’s fees do not apply to a dealer that acquires ownership of a vehicle that already has a Michigan electronic title issued by the SOS and that vehicle was not previously dealer‑owned.

Who is affected

  • Vehicle purchasers and title applicants (temporary increases and surcharges through specified dates).
  • New and used vehicle dealers (additional per‑transfer fee beginning 1/1/2026, subject to adjustment and limited exemption for certain electronic‑title vehicles).
  • DIFS and Secretary of State — administrative responsibilities for the new fund, fee adjustments, and deposit/notification duties.
  • Scrap tire program gains short‑term revenue via $1.50 surcharge through 2027.

Fiscal and timing notes

  • Multiple sunset dates: several fees/surcharges are time‑limited (Oct 1, 2027 or Dec 31, 2027).
  • Dealer fee starts Jan 1, 2026; exemption effective Mar 1, 2026.
  • Fee adjustments: first by July 1, 2028 (effective Jan 1, 2029), then biennially.
  • Creation of a dedicated, non‑lapsing Motor Vehicle Sales Finance Act Fund administered by DIFS to pay MVSFA administration costs.
  • Effect contingent on enactment of HB 5354.

Procedural status

  • Introduced and referred to Transportation, Mobility & Infrastructure Committee (Nov 26, 2024). Substitute H‑1 adopted and bill placed on third reading (Dec 13, 2024). A referral to a joint committee on Jan 22, 2025 is noted in the legislative actions.

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

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