SUMMARY OF HOUSE BILL 5159 as passed by the House:

The bill would amend the Michigan Vehicle Code to add a new weight class for commercial vehicles weighing between 24,001 and 26,000 pounds, and to provide for the registration fee on a farmer’s truck or tractor that was used for a nonfarming operation.

Currently, the Code provides for a range of registration fees for commercial vehicles according to a vehicle’s “elected gross weight”. This range includes a fee of $429 for vehicles weighing between 24,001 and 28,000 pounds. The bill would create separate categories for vehicles weighing between 24,001 and 26,000 pounds, and vehicles weighing between 26,001 and 28,000 pounds. Each of the two categories would be subject to a $429 fee.

In addition, the Code provides that, for a road tractor, truck, or truck tractor owned by a farmer and used exclusively in connection with his or her farming operations, or used for the transportation of the farmer and his or her family, and not used for hire, the registration fee is 74 cents per 100 pounds of empty weight of the vehicle. Under the bill, if the road tractor, truck, or truck tractor also were used for a nonfarming operation, the farmer would be subject to the highest registration tax applicable to the nonfarm use of the vehicle, but would not be subject to more than one tax rate under the Code.

MCL 257.801 Legislative Analyst: S. Margules

FISCAL IMPACT

The bill would have a minimal impact on the Michigan Transportation Fund.

Fiscal Analyst: B. Bowerman

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

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