• Mission & Governance
• Services Overview
• How to Get Involved
• Standing Committees
• NCSL Foundation

• Issue Areas: A-Z
• State-Federal Relations
• NCSL Standing Committees
• News from D.C. and the States

• About State Legislatures
• Elections, Campaigns & Redistricting
• NCSL's StateConnect Directory
• Web Sites

• Online Guide to NCSL Services
• Staff Sections and Networks
• Meetings & Professional Development
• Staff Directories

• Meetings Calendar
• Online Registration
• Meetings Home Page
• Legislative Summit

• Bookstore
• State Legislatures Magazine
• NCSL's StateConnect Directory

September 1999

by Deborah Olszonowicz, Transportation Intern

Overview 
Table 1: Motor Vehicle Registration  
Table 2: License Plates 
Motor Vehicle Registration
Evidence of Effectiveness of Alternative Methods of Registration Renewal
License Plates
Specialty Plates
Other License Plate Issues
Conclusion

Motor vehicle registration and license plate issuance are two important topics of state legislation that fall within the jurisdiction of state and local governments. This Transportation Review is intended to inform state legislators and others of recent activities and trends concerning noncommercial motor vehicle registration and license plates.

Overview

This report is divided into two sections. The motor vehicle registration section discusses recent registration fee changes and how the fees are distributed. Registration fees, insurance requirements at the time of registration and registration renewal periods for all 50 states and the District of Columbia are provided in table 1 at the end of this report. Improper registration of vehicles in a neighboring state also is briefly addressed. In addition, this section describes some of the newer, more innovative methods of registration renewal.

The second section provides an overview of specialty plates, including advantages and disadvantages of such plates. A description of the distribution of organizational specialty plate proceeds for all 50 states and the District of Columbia is included in table 2 at the end of this report. Other issues briefly discussed in this section include personalized plates and special plates for drunk driving offenders. In addition, other license plate issues - such as the debate between requiring one or two plates per vehicle, general reissuance of license plates, and limits on license plate frames and covers - are addressed.

Motor Vehicle Registration

All 50 states assess fees for motor vehicle registration. From 1997 to 1998, motor vehicle registration fees for standard license plates generally remained unchanged. A few states slightly raised their fees. For example, Colorado increased its fee by $1 for cars that weigh less than 2,000 pounds. A few states decreased registration fees. In New Jersey, for example, the owner of a 1980 or newer car that weighs 3,500 pounds or less could save up to $6.50 per vehicle in 1998. In New York, a vehicle weighing up to 3,500 pounds as of 1998 was charged 64 cents per hundredweight instead of 86 cents.

During the 1999 legislative session, relatively few states changed their registration fees. Illinois will raise its vehicle registration fee by $30 (from $48 to $78 annually). Other states made minor increases. Tennessee, for example, enacted a law that authorizes an additional $1 fee effective July 1, 1999, on motor vehicle registration and renewals until June 30, 2004. North Dakota also will be charging an additional $1 per year for most motor vehicles under recently enacted House Bill 1183. See table 1.

States use registration fees for a wide variety of purposes. A review of fee distributions at the beginning of 1998 shows that several states set aside a fixed amount of the fee to help pay for the cost of collection and administration of the program. At least 10 states used some of the revenue from motorcycle registrations for motorcycle safety programs. Registration fees also were used for road and highway maintenance. Some states used fees for air quality control, driver education, and emergency medical service expenses, although these uses were less common. One unique use of fees was for weed management in Montana. Under Tennessee's recently enacted $1 registration fee increase mentioned above, the revenue generated will be used to develop and update the state's computerized titling and registration system.

In addition to collecting fees, states often establish other requirements for motor vehicle registration, such as requiring proof of insurance at the time of registration. Proof of insurance is required at the time of registration in at least 30 states and the District of Columbia. California, on the other hand, requires proof of insurance at the time of renewal for cars, motorcycles and commercial vehicles. In Ohio, Oregon and Utah, a registrant simply signs a document stating that he or she has insurance, but no physical proof is required. In Iowa, Montana and Washington, among other states, proof must be carried in the vehicle, but, again, proof is not required at the time of registration. See table 1.

In many states, the days are long gone when drivers could renew vehicle registration only in person or through the mail. As technology continues to offer new solutions to government services, motor vehicle divisions are devising new ways to provide their customers with better customer service while simultaneously increasing government efficiency. A major advantage of these new methods of registration is that drivers generally can renew their registration from their own home 24 hours a day, seven days a week.

Missouri Senate Bill 19, signed by the governor on July 13, 1999, permits the director of revenue to renew motor vehicle registrations electronically. Missouri may be the most recent to join at least nine other states - Alaska, Arizona, Indiana, Maryland, Massachusetts, Michigan, New Mexico, Virginia and Wisconsin - that currently allow drivers to renew their vehicle registration online. Some states offer the renewal services not only for standard plates, but also for personalized plates and specialty plates. Alaska, for example, offers online renewal for personalized license plates, while Massachusetts allows customers to renew specialty plates (not vanity plates) online. However, states such as Indiana limit online renewal to those license plates that do not require additional documentation for processing; for example, many of its special recognition license plates cannot be renewed online. Although registration renewal is not available for all license plates in Indiana, online renewals continue to increase in popularity. Whereas only about 3,000 online renewal transactions per month occurred last year, that number already had doubled by March 1999.

For online registration renewal, drivers generally must pay by credit card; debit cards are accepted in some states. Registrants in some states have to pay a fee to use the online service. In Wisconsin, registrants pay a fee of $2.50 to use the online registration service. In Indiana, Access Indiana Information Network (AIIN), the company that maintains the registration renewal web site, charges an additional 50 cents per registration for use of its system. Indiana's web site also warns customers that some credit card banks may treat the renewal payment as a cash advance, thus charging an additional fee.

In other states registrants receive a discount. In Massachusetts, for example, online renewal registrants save $5. Similarly, Virginia House Bill 1623, effective July 1, 1999, provides that the Department of Motor Vehicles (DMV) may offer discounts and other incentives to those who conduct business electronically or through the mail.

Given that confidential information such as credit card numbers, vehicle identification numbers and addresses must be given for registration renewal, renewal sites often recommend and use methods to protect the users' private information. The web sites in both Arizona and Wisconsin, for example, require that users have a web browser with secure socket layer (SSL) capability (such as the newer versions of Netscape Navigator and Microsoft Internet Explorer). Indiana's Bureau of Motor Vehicles web site states that its renewal system "uses an industry standard, secure encryption method that virtually eliminates the possibility of credit card numbers being misappropriated online."

Although online registration is convenient for certain drivers, there are some concerns about offering private information online. A security breach in April 1998 could have released some Arizona registrants' confidential information that had been given for their registration renewals. The incident occurred about six months after the online renewal service first was offered, when a programmer from IBM - who had been working in conjunction with the government agency - placed some personal information outside the secured area. IBM apparently has corrected the problem and the Arizona Motor Vehicle Division continues to offer online registration service with the assistance of IBM.

Another form of registration that many states now offer is telephone renewal. At least 13 states - Alaska, Arizona, California, Idaho, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Mexico, New York, Virginia and Wisconsin - currently offer registration renewal via the telephone. The process for telephone renewal is relatively simple. To complete the transaction via the telephone, registrants generally call a toll-free number (or make a local call) from a touch-tone phone and pay the renewal fee by credit card.

As with online renewal, the idea behind offering registrants the opportunity to register using the telephone is not only to offer more conveniences to the customer, but often to save the government money. Indiana serves as one example. The Indiana Bureau of Motor Vehicles expects to spend approximately $200,000 to develop and begin operation of the new service, and the private company that helps process the registrations will receive about 85 cents per transaction. Bureau officials hope this telephone service will decrease its in-person customers and its administrative costs, thereby helping to mitigate the system's deficit.

At least two states - Virginia and Maryland - are providing registration renewal by taking their services on the road. Virginia offers registration renewal, along with the other services offered at its stationary customer service centers, through four mobile customer service centers (MCSCs). The MCSCs travel more than 230 days per year to rural towns and densely populated areas to help provide more convenient service to their customers. Some of the more heavily populated locations where MCSCs provide service include colleges, the U.S. Marine Base at Quantico and special events. To operate, MCSCs must have generators inside the units and park near electric outlets as a precautionary measure. In addition, MCSCs need two telephone lines to transmit and receive data from the DMV's main computer via the modems. Maryland also has a mobile motor vehicle office for registration renewal and other services.

At least two states - Indiana and Maryland - permit registrants to use automated teller machine-style machines for registration renewal. The machines generally are located in malls, shopping centers and other convenient locations. In addition, although not the most technologically advanced method of registration renewal, at least 11 states provide drop boxes as an alternative to in-person or mail-in registration. States offering this service include Alaska, Arizona, Connecticut, Georgia, Indiana, Massachusetts, Michigan, Nevada, Pennsylvania, Washington and Wisconsin.

Evidence of Effectiveness of Alternative Methods of Registration Renewal

As departments of motor vehicles continue their efforts to increase government efficiency and improve customer service, registration renewal has taken on several new forms. All the alternatives to walk-in and mail-in registration aim to provide registration renewal without the hassle of long lines for customers. Some government agencies also anticipate saving administrative costs from some of the newer methods. Online and telephone registration renewal are two of the most common new methods, although some concern about releasing confidential information using newer technology is still being assessed.

License Plates

Every motor vehicle is registered with state or local authorities and issued a license plate, sometimes referred to as a license tag. License plates serve to help law enforcement, motor vehicle authorities and others identify a vehicle, while simultaneously indicating that the registrant has paid the proper registration fee and taxes on the vehicle. License plates also offer information such as the weight class, the county in which the vehicle is registered, use restrictions, and the age and weight of the vehicle.

In addition, some license plates show whether the owner of the vehicle is a member of a special organization or group. Because of the important functions of license plates and the popularity of specialty plates, nearly 100 bills regarding specialty plates were introduced during the 1999 legislative sessions.

Specialty Plates

Specialty plates are license plates that somehow differ in design from the standard state license plate, although states often use different terms and definitions for plates that deviate from the standard look. The umbrella terms "specialty plates" and "special plates" often include both special interest fundraising plates and other types of plates. The purchaser of a specialty plate in support of a special interest generally pays a fee in addition to the regular registration fee, and some percentage of the revenue goes to that special interest organization. However, certain specialty plates in some states - such as disability plates in Virginia and Arizona's Medal of Honor plates - are provided at no additional charge to the registrant.

Types of specialty plates include, but are not limited to, civic and community organizations, colleges and universities, environmental groups, and military personnel. Specific examples of specialty plates enacted during 1999 legislative sessions include a special Ducks Unlimited plate in Arkansas, a "Choose Life" specialty plate in Florida, a specialty plate to help restore the bobwhite quail population in Georgia, an Animal Friendly specialty plate in Tennessee, a specialty plate honoring the citrus industry in Texas, and a license plate for supporters of minor league baseball teams in Virginia. Personalized plates are addressed separately below.

The amount of the additional fee that a sponsoring organization receives generally depends on the type and price of the specialty plate. In Illinois, for example, registrants pay the standard registration fee of $48, plus $40 for a set of environmental plates. Fifteen dollars goes toward producing the set of plates and the Illinois Department of Natural Resources State Park Fund (Fund) receives $25 from the sale. Illinois registrants are charged $27 annually to renew these plates, and $25 goes to the Fund. In Indiana, the cost of special recognition plates ranges from $12 to $37. The Bureau of Motor Vehicles charges $12 for administrative costs, pursuant to statute, on all special recognition license plates. Any amount above $12 goes to the benefiting organization. In Virginia, specialty plates also vary in price. The University of Virginia Rotunda plates, for example, cost $25 annually in addition to the regular fee. After the first 1,000 plates are sold, a $15 contribution per plate is made to the University of Virginia. In Pennsylvania, four special fund plates - such as those for the Wild Resource Conservation Fund - cost an additional $35; the fund receives $15.

In terms of total annual revenue raised by the benefiting organization for which the special interest specialty plates were issued, the proceeds vary depending on the type of plate. In Illinois, for example, environmental plates displaying a cardinal have raised about $7 million for state parks since 1994. The Illinois plates promoting the prevention of domestic violence have raised about $2.5 million since they first were offered in 1995. Similarly, the Massachusetts Environmental Trust's (Trust) whale license plate brings in about $1 million annually. The Trust then distributes the revenue to 67 environmental nonprofit groups. See table 2.

Some state officials have expressed concern about the expense of producing specialty plates that are not in high demand. Although the whale license plate is popular in Massachusetts, for example, there has been such low demand for four of the seven special plates approved during the past nine years - that benefit causes - that the makers have not yet recouped their costs. Similarly, the $25 Florida Gulf Coast plate was issued to only 163 vehicles in 1998, including the renewals of plates purchased within the previous four years, for a total income of only $4,075. Some Washington officials also have expressed this concern, pointing out that it costs about $20,000 to design, manufacture and ship each type of specialty plate.

Financial pros and cons aside, some officials and other groups have expressed concern about the large number of specialty plates issued in various states. Virginia, for example, offers approximately 150 specialty plates, and Illinois has more than 200 special plates. According to The Fast Track to Vehicle Services Facts: 1999 Edition, some law enforcement officials in at least nine responding jurisdictions - Alabama, California, Idaho, Illinois, Indiana, Iowa, Minnesota, Utah and Virginia - have expressed concern. As some law enforcement officials in California and Minnesota have pointed out, the more plate variation in one state, the more difficult it is for officers to quickly recognize the state that issued the plates. Law enforcement officials Iowa and Utah expressed concern about the difficulty in recognizing invalid or illegitimate specialty plates. The remainder of the nine states also indicated that problems arise given the number and diversity of specialty plates.

Another problem often mentioned by law enforcement officials in The Fast Track to Vehicle Services Facts is that they can be difficult to read, due generally to color schemes and design. Officials in at least 11 states - Alabama, Arizona, Colorado, Iowa, Maine, Massachusetts, Ohio, Pennsylvania, Tennessee, Texas and Vermont - mentioned this as a concern. In addition, law enforcement officials point out that specialty plates often duplicate license plate numbers that already have been issued. This has been a problem for at least six states, including Alabama, Idaho, Massachusetts, New York, Ohio and Wyoming.

An additional concern among some organizations, policymakers, and citizens is that states should not sanction political statements through the issuance of certain controversial special interest plates. One example of this debate recently manifested itself in Florida. On June 8, 1999, Governor Jeb Bush approved House Bill 509, which allows a new "Choose Life" specialty plate. The plate will cost an additional $20 above the regular fee and the money will go to not-for-profit adoption agencies. The new law, supported by various religious and social conservative groups such as the Christian Coalition of Florida, explicitly prohibits profits from the sale of the specialty plates form going to any agencies that support abortion as an alternative to adoption.

Another controversial bill regarding special interest plates (at least during the preliminary stages) was Virginia House Bill 1305, approved on March 29, 1999. This bill allows the issuance of a special license plate for members of the Sons of Confederate Veterans, but prohibits any logo or emblem from being incorporated into the design of the specialty plate. The Virginia House of Delegates voted to remove the Confederate flag from the Sons of Confederate Veterans' plate after concern was expressed by the legislature's black caucus. During the discussion, it was mentioned that Maryland and North Carolina specialty plates with the Confederate flag were approved and upheld by the courts.

Because of the increase in specialty plates in many states, more than 30 states require that an organization guarantee a certain number of sales before a specialty plate can be issued. In Florida, for example, a specialty plate proposal now requires a survey from the organization with 15,000 names of individuals who are interested in purchasing the new specialty plate, a $60,000 application fee to cover departmental expenses relating to reviewing the application and design, and an analysis of the financial impact and marketing strategies for the new license plate. After departmental review, the Florida Legislature then must approve the proposed specialty plate.

Similarly, Idaho's governor signed House Bill 369 into law on March 26, 1999, to address the issuance of new specialty plates. The bill amends existing law to require the Idaho Transportation Department to advise the Idaho legislature if a specific special license plate is issued to fewer than 1,000 vehicles per year for two consecutive years. If so, the special license plate could be discontinued. Arizona House Bill 2578, signed into law on May 4, 1999, permits organizations with fewer than 200 members to submit a request for a special plate provided the organization consents to covering production and program expenses. In West Virginia, the governor signed into law on March 5, 1999, Senate Bill 366, which prohibits charitable and educational organizations from offering certain special vehicle registration plates.

Personalized plates - sometimes referred to as vanity, custom or prestige plates - allow motorists to put their names, initials or another message on their license plate, generally for an additional fee. These plates are offered in all jurisdictions that responded in The Fast Track to Vehicle Services Facts: 1999 Edition. More than 30 states have established guidelines to ensure that certain types of offensive messages are not approved for personalized plates. Some states have compiled a list of words that will not be approved on personalized plates. Messages such as those that are sexual in nature, drug-related, racially or ethnically degrading, and profane generally are denied issuance. Examples of messages rejected by the Ohio Bureau of Motor Vehicles last year, for example, include "NOCOPS," "GOT BEER," "PROZAC," "MAFIA1" and "GONAKED." See table 1 for personalized plate prices.

States that introduced special plates or an identifying label on license plates for convicted drunk drivers during the 1999 legislative sessions include Illinois, Indiana, Louisiana, Massachusetts, Mississippi, Nevada and New York. Although none of these bills have passed as of July 1999, some of them remain under consideration. According to some advocates of special plates for drunk driving offenders, two of the main purposes of these license plates are to alert other drivers of the driver's past behavior and to deter drivers who might otherwise consider driving drunk.

Currently, several states require special plates for convicted drunk driving (DUI) offenders. Although Georgia, Minnesota, and Ohio statutorily approved specialty plates for drunk drivers, Iowa and Oregon no longer authorize the use of such plates. Such programs have raised concerns about privacy, due process and probable cause. For example, a bill considered in California during the 1997 legislative session was defeated because of issues raised on probable cause, due process and privacy. The American Civil Liberties Union strongly opposes the use of so-called "scarlet letter" laws and was an active opponent in the California debate.

Because of privacy concerns, plates that are obvious to the general public are not widely used. If family members also must drive the vehicle with special plates, it unfairly identifies them as a convicted drunk driver. There also are concerns about the privacy rights of the convicted drunk driver, because people convicted of other crimes are not necessarily readily identifiable to the public.

Concerns about due process and probable cause also exist with the use of special plates that bear identification known only to law enforcement officers, because officers might stop drivers with DUI plates more readily than they would drivers with normal plates. Even when the driver is found to be impaired, the question remains whether they were stopped because of some specific behavior (probable cause) or whether they were stopped because their plates aroused suspicion and led officers to target the driver.

Other License Plate Issues

Approximately 30 states require that automobiles have a license plate on both the front and back of the vehicle. Proponents of two license plates argue that it increases safety and helps law enforcement officials. For example, supporters have suggested that two license plates help photo radar enforcement, because the photo is taken from the front of the car.

Opponents, however, suggest that two-plate systems increase the likelihood of fraud because a vehicle owner might put the second tag on another unregistered vehicle, thus evading registration taxes and fees. Another concern is the expense of issuing twice as many plates and storage of the plates. The price of manufacturing a license plate varies from state to state, and sometimes the price differs for specialty plates or personalized plates versus regular plates. For example, Missouri manufactures its plates at an estimated cost of 84 cents per plate, while the estimated price in Connecticut ranges from $2.85 to $8.

As reported in The Fast Track to Vehicle Services Facts: 1999 Edition, a total of eight jurisdictions responded to the question of whether they currently were considering changing the number of license plates required on a vehicle. Almost all the responding jurisdictions that currently require two plates have considered cutting back to one, but efforts have almost always failed. For example, the debate over one versus two plates has been ongoing in California for several years. Currently, law enforcement officials in California and other supporters have prevailed in maintaining the two-plate requirement, but proponents of one plate continue to emphasize fiscal concerns. On the other hand, the Indiana legislature has considered changing its requirement from one plate to two, but the move has been defeated because the advantages of two plates have not been shown to outweigh the costs. See table 2.

Approximately 17 states currently do not have a standard period of time requiring the state to reissue license plates. For states that have chosen specified periods for license plate replacement, the duration generally ranges from four to 12 years.

Pennsylvania has not had a statewide replacement since 1976. Under recently enacted legislation, Pennsylvania will reissue license plates every 10 years. Beginning in September 1999, Pennsylvania will issue a new standard license plate, replacing almost all yellow-on-blue and blue-on-yellow plates. Reflecting the state's effort to become more efficient through increased use of new technology, it will incorporate the state's web site address on its standard license plate. Illinois is currently in the process of choosing a new standard license plate design for its license plate replacement. See table 2.

Nearly all 50 states address license plate frames and covers. Some states directly regulate license plate frames and covers, while other states approach the issue more generally by prohibiting the obstruction of license plate readability. More regulations and prohibitions are imposed on covers than on frames. In a few states - such as Alabama and Wyoming - covers are prohibited but frames are permitted provided that the characters are legible. Many states, although they allow frames, permit only covers that do not alter the color or appearance of a license plate in any way. Covers also raise concerns regarding the use of photo radar.

Conclusion

Registration fees for standard license plates have generally remained unchanged over the past three years. As mandated by state codes, the money is distributed to a variety of different programs and funds.

Although standard registration fees have generally remained unchanged, many people are paying more to register their cars now because they choose to purchase certain types of specialty plates. Whether the advantages in terms of revenue gain -especially for benefiting organizations - outweigh the disadvantages of specialty plates remains a topic of discussion.

More technologically advanced registration renewal methods offer new ways of paying registration fees. All these methods aim to help states provide better, more efficient service to their customers.

References

American Association of Motor Vehicle Administrators. The Fast Track to Vehicle Services Facts. Dubuque, Iowa: AAMVA, 1999.

American Automobile Association. Digest of Motor Laws, 65th ed. Heathrow, Fla.: AAA, 1999.

American Automobile Association. Digest of Motor Laws, 64^th ed. Heathrow, Fla.: AAA, 1998.

Baker, Donald P. "Va. House Votes to Take Confederate Symbol Off License Tag." Washington Post, January 26, 1999.

Federal Highway Administration. Highway Taxes and Fees: How They Are Collected and Distributed. FHWA-PL-98-036. Washington, D.C.: FHWA 1998.

"Keep Salmon Off License Plates, Legislator Says." Associated Press (Seattle), December 22, 1998.

Murray, Thomson C. License Plate Book: Current Plates of the United States and Canada. Jericho, N.Y.: Interstate Directory Publishing Co. Inc., 1995.

"New Plate Has 'Net Wear." MOVE 4, no. 2 (Spring 1999): 31.

Nitkin, David. "Gov. Bush Signs Controversial License Law." Orlando Sentinel, June 9, 1999.

O'Connor, Debra. "State Targets Improper Plates." St. Paul Pioneer Press, February 16, 1999.

"Ohio Censors License Plates." Associated Press, May 19, 1999.

Petterson, John L. "Kansas Considers Plan to Mandate Front and Back License Plates." Kansas City Star, February 14, 1999.

Pitzl, Mary Jo. "MVD Fears Breach of Files." Arizona Republic, April 22, 1998.

Russell, Kiley. "Special Car Plates for DUI Drivers Termed Privacy Invasion." Associated Press (Carson City), March 31, 1999.

Schauerte, Mark. "Illinois Lawmakers, Some Police Seek End to Special-Issue License Plates." St. Louis Post-Dispatch, March 22, 1999.

"Special License Plates Hit With a Thud." Associated Press (Worcester), May 9, 1999.

"Virginia DMV Gets Mobile: Taking Service to the People of Virginia." MOVE 4, no. 2 (Spring 1999): 30.

Weaver, Gregory. "BMV Will Unveil New 'Express' Way to Renew Plates." Indianapolis Star/News, March 4, 1999.

Links

New Mexico's "Offramp" - Lists DMV links to all 50 states (several of which were used for this report).

American Association of Motor Vehicle Administrators

Contacts

Deborah Olszonowicz, transportation intern, NCSL Transportation Program

Jim Reed, program director, NCSL Transportation Program

Matt Sundeen, policy specialist, NCSL Transportation Program

For more information about special plates for drunk driving offenders, contact

Jeanne Mejeur, program principal, NCSL Legislative Information Services.

For more information about motor vehicle taxes, contact Scott Mackey, chief economist or Mandy Rafool, policy specialist, NCSL Fiscal Affairs Program.

Acknowledgements

NCSL staff who provided information, assistance and review of this report include Jim Reed, Jan Goehring, Jeanne Mejeur, Matt Sundeen and Melissa Savage.

   Transportation Reviews page

Visitor counts for this page.