Relates to allowing a vehicle owner to receive a pro-rated registration fee refund in certain circumstances

Title of bill

An act to amend the vehicle and traffic law, in relation to refunds of the vehicle registration fees

Purpose

The purpose of this bill is to offer motorists the option of receiving a cash refund of the remaining credit of a previously paid registration fee in the event they surrender the plates prior to the end of that registration period.

Summary of provisions

Section 1 amends subdivision 1-a of section 428 of the vehicle and traffic law so that when license plates are surrendered, or in the case of a stolen vehicle when proper documentation is submitted to the Department of Motor Vehicles, the motorist will be entitled to a refund in the amount equal to as many twenty-fourths of the fee paid for the registration of the vehicle as there are full calendar months in the registration period following the date of the receipt of the number plates, or plate, or the filing of an application for a refund if no plates are available, less the sum of one dollar.

Section 2 amends subdivision 3 of section 428 of the vehicle and traffic law Section 3 sets the effective date.

Justification

Currently when a motorist surrenders license plates to the Department of Motor Vehicles before the two year registration fee has expired, they may be eligible to transfer the remaining registration in the form of a credit to a new vehicle, or receive a refund of the registration fee. The credit they may receive if the new vehicle is a similar size and class is essentially a prorated amount ensuring the motorist receives fair value for the registration fee they've already paid. However, when a motorist elects to receive a refund, current law provides for a less than fair refund.

For most passenger vehicles with a two year registration if license plates are surrendered in the first 12 months of a registration period a refund equal to one year of the registration, minus one dollar for processing fees, is refunded to the motorist. If the surrender occurs in the second year of the registration, no refund is given. This bill would afford motorists in New York the ability to opt for a cash refund that would more accurately reflect the monies owed to them by breaking the fee into twenty-fourths and then refunding as many twenty-fourths of the registration fee, minus one dollar for processing fees, as there are full calendar months remaining in the registration period following the date of the surrender.

Prior legislative history

This is a new bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the ninetieth day after it shall have become law.