Permits the proration of vehicle registration fees for stolen vehicles

BILL NUMBER:S820

Title of bill

An act to amend the vehicle and traffic law, in relation to authorizing the proration of registration fees for stolen motor vehicles, motorcycles or trailers

Purpose or general idea of bill

To address an unfair or unequitable credit or registered refund policy concerning vehicle registrations.

Summary of specific provisions

The bill provides that an owner of a registered motor vehicle, motorcycle or trailer which is stolen may, upon submission of proof that the vehicle was stolen and payment of a transfer fee of $7.75, credit or apply the unused portion of the registration fee on such vehicle to any subsequent fee for the registration renewal of another vehicle, motorcycle or trailer owned by the registrant. The prorated cost of the unused portion of the prior registration or the registration on the stolen vehicle shall be computed on a monthly basis.

Effects of present law which this bill would alter

Section 420 of the Vehicle and Traffic Law is amended by adding a new subdivision 9.

Justification

DMV's current policy of prohibiting the registrant of a stolen vehicle from applying the pro-rata credit on the unexpired registration to the registration renewal fee of another vehicle already owned by that person is arbitrary and capricious. The owner is only permitted to apply the credit if a replacement vehicle is purchased and registered. However, some motorists simply decide not to purchase a replacement vehicle and therefore, they often forfeit some portion of the expensive registration fee they already paid.

Since the Department of Motor Vehicles already administers a credit pro-rata registration system, the extension would not be difficult to execute. In the context of our billion dollar budget, the cost for this form of taxpayer relief is insignificant. What will be significant, however, is that with approval of legislation, a more equitable system will finally be instituted for some victims of car theft who are so unfairly served by the present policy.

Thus, the enactment of this measure will establish a more equitable auto registration transfer or refund policy for all state residents and reaffirm the principle that government should not gain from the misfortune of its residents.

Prior legislative history

1998: A.8884 - Reported by Transportation and Ways & Means to Rules. 1999-00: A.5629 - In Transportation Committee. 2001-02: A.3300 2003-04: A.2782A 2005-06: A.2581 2007-08: A.2102 - Passed Assembly

2009-10: S.7024 - Held in Finance Committee 2011-12: A.4585/S.3572 - Transportation Committee

Effective date

Section one shall take effect on the first of September next succeeding the date on which it shall become a law.