Vehicle fees low, but they may rise

OGDEN — Utah motorists enjoy some of the lowest title and registration fees in the nation.

But as lawmakers scramble to finance the state's growing list of transportation needs, those vehicle fees could double in the not-so-distant future.

Currently, Utahns pay $21 for vehicle registration. Only 13 states have a lower registration fee, and 17 states have a fee of $50 or more — including a high of $99 in Minnesota — according to the Utah Office of Legislative Research and General Counsel.

The current state title fee is $6. Only nine states are known to have lower title fees, and 16 states have title fees of $20 or more — including a high of $65 in Illinois.

Given those figures, it only makes sense state lawmakers would consider raising the fees as a way to help pay for nearly $23.6 billion in unfunded transportation projects. That's the amount of money, above and beyond existing revenue sources, the Wasatch Front Regional Council says Utah needs to satisfy highway and transit needs by the year 2030.

While no recommendation was made, the legislative planning committee charged with assessing the state's transportation funding options was given an overview of national registration and title fees this past week.

"Registration fees are currently low in Utah, compared to other states," Ben Christensen, legislative policy analyst, told the Transportation Planning Task Force this past week.

Christensen also pointed out a good reason why lawmakers might consider retaining the current fee, or only raising it a small amount: "If you charge a lower fee, people are more likely to register these vehicles."

Task force members then discussed whether Utah drivers might, in fact, avoid registering their vehicles if those fees were increased. They were told the fine for a Utah resident declining to register a vehicle, or allowing registration to lapse, is in the $35-$40 range, similar to a standard moving violation. However, out-of-state residents who move to Utah and do not register their vehicles risk a fine of up to $2,000.

Christensen noted the state actually loses money in collecting title fees — it costs about $5 million to collect $4.3 million in fees.

In addition to title and registration, Utah residents also pay property tax on their vehicles.

As an example of what an average Utahn pays to own a vehicle, Christensen compiled the costs an Orem resident would incur to register a 2003 vehicle — a total of $176.50.

A doubling of the state registration fee still would keep that total below $200. And, Christensen noted, raising the registration fee by $22, to $43, would make Utah's registration fee only the 19th highest in the nation.

Whether the task force will recommend such an increase — and, more importantly, whether state lawmakers will approve such a hike — remains to be seen. The task force will present all of its recommendations to lawmakers prior to the start of the 2005 Legislature in January.

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E-mail: zman@desnews.com