A new bill in Utah, House Bill 277, seeks to provide a refund option for vehicle owners who sell or total their cars before their registration period ends. Sponsored by Rep. Katy Hall, R-Weber/Davis, the proposed legislation addresses concerns about vehicle registration fees being paid for months when the vehicle is no longer in use.
Currently, when a vehicle is sold or disabled before the registration expires, the original owner has no way to recoup the remaining registration fees. Meanwhile, the state collects fees again from the new owner. Hall describes this as a form of “double taxation.” She believes the bill would allow people who have already paid for registration to get their money back for the months they no longer own the vehicle.
“This bill is about fairness for consumers,” Hall said, emphasizing that many Utahns don’t get their full value from the registration fees they pay.
Under the proposed law, if it passes, vehicle owners would be required to submit proof online showing either that their vehicle is no longer operational or that it has a new owner to qualify for the refund.
The bill, however, comes with potential financial implications for the state. Hall acknowledges that it would lead to an estimated $5 million loss in tax revenue for Utah. Despite this, she argues that the refund program is justified, pointing out that every neighboring state already has similar systems in place for vehicle registration refunds or transfers.
If passed, House Bill 277 would mark a significant shift in how Utah handles vehicle registration fees, potentially bringing relief to many residents who have been unable to reclaim their registration costs after selling or damaging their cars .
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