Legislature(2003 - 2004)
03/11/2003 02:13 PM Senate TRA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 103-MOTOR VEHICLE REGISTRATION FEES
CHAIR COWDERY announced the committee would take up SB 103, but
he did not plan to pass the bill out of committee today because
several people wanted to testify on the bill and were
unavailable today. He asked Mr. Jardell to present the bill.
MR. KEVIN JARDELL, Assistant Commissioner of the Department of
Administration (DOA), explained that SB 103 establishes an
increase in vehicle registration fees. DOA believes it is time
to re-evaluate and update user fees. He said Mr. Duane Bannock
was available to testify via teleconference.
MR. DUANE BANNOCK, Director of the Division of Motor Vehicles
(DMV), DOA, told members SB 103 would update some of the
standards on the books since 1970. Since that time, only two
small increases in registration fees have occurred. He and the
deputy director researched the fees in all 49 states to compare
them with Alaska's fees. While some states have lower
registration fees, it was difficult to track down the total
amount of fees those states collect through other types of
taxes. Clearly, the fees in SB 103 are still less than the
nationwide standard.
CHAIR COWDERY asked Mr. Bannock to address the increase in
registration fees for the semi-trailers and "big rigs."
MR. BANNOCK said Section 4 on page 3 is specific to commercial
trailers. Typically that would be a container type of trailer,
but specifically it is any trailer, whether a small flatbed
trailer registered commercially or a 40-foot container. He said
several years ago all 50 states did away with annual
registration of commercial trailers and established a one-time
permanent registration. SB 103 calls for a one-time fee, but the
fee will be $20 instead of $10. Currently, about 10,000 of these
trailers are on the ground. DMV projects about 1,000 new
trailers will be registered in Alaska [next year] and pay the
$20 one-time fee.
CHAIR COWDERY asked if the fee has anything to do with the
licensing of those trailers.
MR. BANNOCK said for all practical purposes, licensing and
registering mean the same thing. Therefore, a person with a
commercial trailer will get license plates with the one-time
payment. Those plates will not have to be renewed year after
year.
CHAIR COWDERY asked if the Legislature amended the law to
increase the tractor fees but lowered the trailer fees four or
five years ago.
MR. BANNOCK said the last major change took place in 1998 at
which time legislation was enacted that eliminated $1.6 million
worth of commercial trailer registration fees and charged that
amount equally amongst all registered commercial vehicles.
CHAIR COWDERY asked Mr. Bannock how DMV approaches registering
vehicles with foreign licenses.
MR. BANNOCK said a trip permit fee for the tractor portion of
the truck is charged but that is not addressed in SB 103.
SENATOR OLSON said it is his understanding that vehicles used
for commercial purposes are considered to be revenue generating
and are charged more. He asked why commercial trailers are
charged a $20 registration fee in Section 4 while in Section
1(b)(6), the fee is higher for "a trailer not used or maintained
for the transportation of persons or property for hire or for
other commercial use, including...a boat trailer."
MR. BANNOCK said the boat trailer registration that will cost
$30 every two years is most likely attached to a pickup truck
that right now costs $78 to register every two years. The
container trailer is a one-time $10 fee. That container trailer
is attached to a semi-tractor that pays $300 to register every
year. He explained that when the state stopped collecting the
$1.6 million on commercial trailers, those fees were shifted to
all vehicles registered commercially. The state had no net loss
in revenue.
MR. JARDELL told members that policy was set by an earlier
legislature. DOA has not addressed that policy, but is open to
input from committee members. He said SB 103 does not
restructure the fees.
CHAIR COWDERY pointed out that SB 103 would impact an Anchorage
company, K&W, by charging an additional $20,000 per year to
register K&W's trailers. He said a lot of the trailers travel a
very short distance. He then asked if a non-commercial trailer
owner could register a trailer for up to five years at one time.
MR. BANNOCK said the registration for non-commercial vehicles is
biannual.
SENATOR WAGONER asked Mr. Bannock if he compared the fees in SB
103 to the fees in other northwestern states. He noted that
Washington State used to base registration fees on value, but
now uses a set fee.
MR. BANNOCK repeated that he looked at the fees for all 49
states. The State of Oregon is the least expensive state; its
automobile registration fee is $15 per year. He said fees to
register a two-year old gasoline powered car with an original
retail price of $25,000 and a current value of $15,000 were
compared and they range from $15 to $412.
CHAIR COWDERY asked about the fee for privately owned motor
homes.
MR. BANNOCK said a motor home is currently categorized as a
personal, non-commercial passenger automobile. SB 103 does not
change that category. The fee is $68 for a two-year registration
for any class of motor home, the same as the fee for a personal
vehicle.
SENATOR OLSON asked if DMV has discussed the licensing of four-
wheelers.
MR. BANNOCK said not in association with SB 103. He pointed out
that DMV is responsible for collecting registration fees for
snow machines and motorcycles. However, all terrain vehicles
(ATVs) have not been addressed.
SENATOR OLSON clarified that he wants to know whether trailers
hauled by ATVs have to be registered, especially if they have to
travel on an improvised trail. He said he received phone calls
from constituents who want to know whether they will be required
to license an ATV trailer or a sled being hauled by a registered
snow machine.
MR. BANNOCK said DMV has no interest in licensing trailers that
are being hauled behind ATVs or snow machines.
CHAIR COWDERY repeated that he planned to hold the bill in
committee to hear more public testimony.
| Document Name | Date/Time | Subjects |
|---|