Motor Vehicle Division Motor Vehicle Fees and Payments 2 — Questions and Answers
Question 1: When transferring a vehicle title, which fee is the buyer typically responsible for paying?
- Smog abatement fee only
- Title transfer fee and any applicable use tax (Correct answer)
- Seller's lien release fee
- Original registration fee paid by the seller
Correct answer: Title transfer fee and any applicable use tax
The buyer pays the title transfer fee and any applicable use tax when taking ownership of a vehicle.
Question 2: What does a 'use tax' collected by the MVD on vehicle purchases replace?
- Sales tax when the vehicle is purchased from a private party (Correct answer)
- Annual registration fee
- Smog certification cost
- Insurance premium
Correct answer: Sales tax when the vehicle is purchased from a private party
Use tax is collected by the MVD on private-party vehicle sales in lieu of the sales tax collected by dealers.
Question 3: Which government document authorizes the MVD to collect vehicle-related fees?
- Federal Motor Carrier Safety Act
- State Vehicle Code (motor vehicle statutes) (Correct answer)
- IRS tax code
- Local city ordinances
Correct answer: State Vehicle Code (motor vehicle statutes)
Each state's Vehicle Code establishes the legal authority and specific amounts the MVD is permitted to collect.
Question 4: What typically happens to registration fees if a vehicle is sold mid-year?
- The full year's fee is forfeited
- A pro-rated refund may be issued to the seller (Correct answer)
- The buyer must pay double fees
- No fees are adjusted
Correct answer: A pro-rated refund may be issued to the seller
Many states allow a pro-rated refund of unused registration months when a vehicle is sold before the registration expires.
Question 5: An 'original equipment manufacturer (OEM) sticker price' is used by the MVD for what purpose?
- Determining insurance minimums
- Calculating registration fees based on vehicle value (Correct answer)
- Setting speed limits for that vehicle
- Issuing parking permits
Correct answer: Calculating registration fees based on vehicle value
The OEM sticker price helps the MVD calculate value-based registration fees, especially for newer vehicles.
Question 6: A 'non-operation' (PNO) filing with the MVD allows a vehicle owner to do what?
- Drive only in school zones
- Avoid paying registration fees while the vehicle is not driven on public roads (Correct answer)
- Transfer ownership without fees
- Obtain a commercial plate at no cost
Correct answer: Avoid paying registration fees while the vehicle is not driven on public roads
A Planned Non-Operation filing suspends registration fees for a vehicle kept off public roads during that period.
Motor Vehicle Division Motor Vehicle Fees and Payments 2
When transferring a vehicle title, which fee is the buyer typically responsible for paying?