What's happening
This bill increases the percentage of motor vehicle service fees and enhanced internet transaction revenues that county clerks in New York can retain.
Why it matters
Significantly increases county revenue. By raising the percentage of motor vehicle service fees and enhanced internet transaction revenues that county clerks can retain, this bill would direct more funds to local governments, potentially improving their ability to fund local services or reduce reliance on property taxes.
Modernizes compensation for digital transactions. The bill doubles the retention rate for "enhanced internet and electronic partner revenue" from 4% to 8%, recognizing the growing importance of online transactions and ensuring counties benefit from the digital shift in DMV services.
Simplifies and stabilizes local funding. By removing complicated formulas and caps tied to aggregate state revenue figures for internet transactions, the legislation provides county clerks with a clear, predictable, and less administratively burdensome revenue stream.
Potential impact on state-county relations. Increased local retention may reduce the amount of these fees flowing to the state, possibly shifting negotiations between state and county governments over funding responsibilities and service expectations.
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Who cares
County clerks operating motor vehicle offices
The bill would raise their retention of covered motor vehicle receipts from 12.7% to 25% and their share of specified $30 fees from 30% to 60%.
County governments
Their clerks would retain 8%, rather than 4%, of qualifying internet and electronic partner revenue above the 2011 baseline, with the existing adjustment formula removed.
New York State Department of Motor Vehicles
The bill would increase the revenue shares retained by county clerks while preserving the commissioner's duty to certify each clerk's qualifying internet and electronic partner revenue amount.
Headline styles
Raise DMV Fee Retention
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to transportation
- Referred to transportation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1371
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sens. RITCHIE, AKSHAR, O'MARA, ORTT, SERINO, SEWARD -read twice and ordered printed, and when printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to increasing the retention percentage collected for certain motor vehicle service fees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 3 and 3-a of section 205 of the vehicle and traffic law, subdivision 3 as amended by section 3 of part G of chapter 59 of the laws of 2008 and subdivision 3-a as added by section 1 of part F of chapter 58 of the laws of 2012, are amended to read as follows:
3. Each such county clerk shall retain from fees collected for any motor vehicle related service described in subdivision one of this section processed by such county clerk an amount based on a percentage of gross receipts collected. For purposes of this section, the term "gross receipts" shall include all fines, fees and penalties collected pursuant to this chapter by a county clerk acting as agent of the commissioner, but shall not include any state or local sales or compensating use taxes imposed under or pursuant to the authority of articles twenty-eight and twenty-nine of the tax law and collected by such clerk on behalf of the commissioner of taxation and finance. The retention percentage shall be [12.7] twenty-five percent and shall take effect [April] January first, [nineteen hundred ninety-nine] two thousand twenty; provided, however, the retention percentage shall be [thirty] sixty percent of the thirty dollar fee established in paragraph (e) of subdivision two of section four hundred ninety-one and paragraph f-one of subdivision two of section five hundred three of this chapter.
3-a. In addition to the fees retained pursuant to subdivision three of this section, each county clerk acting as the agent of the commissioner pursuant to subdivision one of this section shall retain [four] eight
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03917-01-9
S. 1371 2
percent of "enhanced internet and electronic partner revenue" collected by the commissioner. For the purposes of this subdivision, "enhanced internet and electronic partner revenue" shall mean the amount of gross receipts attributable to all transactions conducted on the internet by residents of such county and by designated partners of the department on behalf of such residents for the current calendar year that exceeds the amount of such revenue collected by the commissioner during calendar year two thousand eleven. The commissioner shall certify the amounts to be retained by each county clerk pursuant to this subdivision. [Provided, however, that if the aggregate amount of fees retained by county clerks pursuant to this subdivision in calendar years two thousand twelve and two thousand thirteen combined exceeds eighty-eight million five hundred thousand dollars, then the percentage of fees to be retained thereafter shall be reduced to a percentage that, if applied to the fees collected during calendar years two thousand twelve and two thousand thirteen combined, would have resulted in an aggregate retention of eighty-eight million five hundred thousand dollars or 2.5 percent of enhanced internet and electronic partner revenue, whichever is higher. If the aggregate amount of fees retained by county clerks pursuant to this subdivision in calendar years two thousand twelve and two thousand thirteen combined is less than eighty-eight million five hundred thousand dollars, then the percentage of fees to be retained thereafter shall be increased to a percentage that, if applied to the fees collected during calendar years two thousand twelve and two thousand thirteen combined, would have resulted in an aggregate retention of eighty-eight million five hundred thousand dollars, or six percent of enhanced internet and electronic partner revenue, whichever is less. On and after April first, two thousand sixteen, the percent of enhanced internet and electronic partner revenue to be retained by county clerks shall be the average of the annual percentages that were in effect between April first, two thousand twelve and March thirty-first, two thousand sixteen.]
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the vehicle and traffic law, in relation to increasing the retention percentage collected for certain motor vehicle service fees
Purpose
To increase the retention percentage for certain motor vehicle service fees.
Summary of provisions
Section 1 amends the vehicle and traffic law to increase the percentages of fees collected for any motor vehicle service, pursuant to statute, retained by the county clerk.
Read the full memo (646 words)
Section 2 provides the effective date.
Existing law
Pursuant to § 205(1) of the Vehicle and Traffic Law, the clerk of each county, except the counties of Rockland, Albany, Westchester, Suffolk, Nassau, Onondaga, Bronx, Kings, Queens, Richmond and New York, shall act as the agent of the commissioner in the registration of motor vehicles, motorcycles, and when directed by the commissioner snowmobiles, vessels and all terrain vehicles, and in the issuance of certificates thereof and number plates therefor, in receiving documents relating to certif- icates of title, and unless and until the commissioner shall otherwise direct in any county, in the issuance of non-driver identification cards and drivers' licenses upon the certification of inspectors, and motor vehicle enforcement transactions. Each such agent shall remit to the commissioner all fees collected by him for registrations, licenses, identification cards and transfers or relating to certificates of title, except as hereinafter provided, together with a complete record of such registrations, identification cards and licenses issued and transfers made, in accordance with the procedure prescribed by the commissioner, and with all documents relating to certificates of title received and such record thereof as the commissioner prescribes.
Pursuant to § 205(3) of the Vehicle and Traffic Law such county clerks shall retain 12.7% of the fees collected for any motor vehicle related service described in subdivision one of this section. The retention percentage shall be 30% of the $30 fee established for non-driver iden- tification cards.
Justification
Fifty-one of the sixty-two counties in New York State are mandated by the state to operate a local Department of Motor Vehicles (DMV) Office. This local DMV operation is one of the many examples of shared services that counties provide for the state. Local DMV offices process many no fee transactions on behalf of the State and provide customer services. However, under the current law, the State of New York takes 87.3% of all fees collected from the work performed entirely by the county operated DMV. In an effort to alleviate that inequity, this legislation increases the percentages of revenue retained by the county clerk from fees generated by the administration of motor vehicle services. Increasing the county DMV revenue sharing rate will not result in any increased cost or fees to local residents or taxpayers and will provide counties with the need- ed revenue to provide these necessary local government services. It is patently unfair to require a county DMV to provide all services related to motor vehicles, including overhead and staffing, in order to fulfill state mandated operations and not share equitably in the generated revenue.
This bill requires that 25% of the revenue generated from the fees collected for any motor vehicle related service shall be retained by the county clerk. Currently county clerks retain just 12.7% of such fees. Additionally, this bill requires county clerks retain 60% of the $30 fee established for non-driver identification cards. This is an increase from the current 30% retention percentage. There is a clear inequity present when a county DMV provides all of the services to fulfill the DMV needs for state residents, yet the state takes 87.3% of the revenue generated from providing these services. This bill balances that inequi- ty and as such its enactment is imperative.
Legislative history
2017-2018: S.1908A/A.3397A
Fiscal implications
Minimal.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.