Nevada DMV bill introduces optional car registration payment plans and digital plates

The Nevada Senate Committee on Finance convened on June 1, 2025, to discuss Assembly Bill 296, which proposes significant changes to the state's vehicle registration payment system. The bill aims to introduce an optional installment payment plan for car registration fees, create a framework for digital license plates, and extend a pilot program for collecting vehicle mileage data.

The first section of the bill allows the Department of Motor Vehicles (DMV) to establish a system enabling residents to pay their car registration fees in installments. This plan is entirely optional and would not accrue interest, with a maximum fee of 15% on the financed amount. The installment option would apply to registration fees of $250 or more, which is the average cost for drivers. The DMV would partner with a vendor to manage these payments, ensuring that the state receives the full registration fee upfront.

In addition to payment plans, the bill also explores the potential for digital license plates, which would be optional for consumers. These plates would function similarly to traditional metal plates but offer additional features. The DMV would need to ensure the security and functionality of these plates before implementation.

Another key aspect of the bill is the extension of a pilot program that collects mileage data, which is crucial for future discussions on roadway funding. This program, initially set to expire in 2026, would now continue until 2030 to gather more data on vehicle usage, including electric vehicles that do not contribute to gas tax revenue.

During the meeting, committee members raised concerns about the potential for the installment payment plan to resemble payday loans, which often carry high-interest rates. However, proponents of the bill emphasized that the proposed system includes consumer protections, such as capping fees and preventing rollovers into high-interest loans.

Supporters of the bill, including representatives from various organizations, argued that it modernizes the payment system and provides a necessary option for those struggling to pay registration fees upfront. Critics, however, expressed concerns about the risks of default and the potential for consumers to fall into a cycle of debt.

The committee's discussions highlighted the need for a balanced approach to vehicle registration payments, considering both consumer needs and the financial implications for the state. The bill's future will depend on further deliberations and potential amendments to address the concerns raised during the meeting.