DMV could be hurt by non-lapsing fund oversight

SALT LAKE CITY — When the Legislature made a decision to get rid of all non-lapsing budgets on July 1, as a way to save money, lawmakers didn't intend to create hardships for the Utah State Tax Commission.

Included in the provision was elimination of the non-lapsing budget for the Division of Motor Vehicles, which according to Sen. Kevin VanTassell, R-Vernal, is manufacturing more than 500,000 new plates every year. Those plates come at a cost, he said, and without an ongoing fund, an ongoing burden would lie with taxpayers.

Barry Conover, acting executive director of the State Tax Commission, said wiping the fund would leave the division with a $600,000 shortfall and result in a plate fee increase for those registering a vehicle.

The Transportation Interim Committee unanimously supported VanTassell's proposal to support a bill that would create an ongoing fund from revenue already being collected within the DMV to support the manufacture of licenses. The bill will be presented in the upcoming legislative session.

— Wendy Leonard