Senate committee reviews broad motor-vehicle registration fee overhaul and moves amended bill forward

Sen. Greg Hertz opened a detailed hearing on a proposal to revise motor-vehicle and other registration fees across many vehicle classes. Hertz said the bill reduces many state registration fees — for newer and older light vehicles, trailers, watercraft, snowmobiles and other categories — and would lower the general-fund portion of registration revenue in exchange for broad fee relief for vehicle owners.

Hertz acknowledged the change would reduce state general-fund receipts substantially and walked the committee through targeted adjustments to ensure dependent special revenue accounts remain whole. Staff analysis for the sponsor showed the proposal would lower the state's motor-vehicle registration receipts by roughly half and that, unless transfers are adjusted, smaller accounts such as recycling, noxious weed control, cemetery care and search and rescue would see reduced receipts. The sponsor's amendment doubles the percentage transfers to those accounts (for example, raising a 1.48% transfer to 3%) to preserve their funding levels and includes a temporary entitlement-share growth floor (2.4% minimum in specified fiscal years) intended to prevent short-term reductions to local government entitlements while the state's revenue picture adjusts.

Informational witnesses included Eric Belford and Lyna Havron from Montana Fish, Wildlife & Parks and Department of Revenue staff helping explain trust accounts, permanent-registration options for older vehicles, and the interaction between fees and entitlement-share formulas. Several witnesses noted that permanent-registration options (one-time payments for older vehicles) and the mix of per-parcel vs. value-based assessments meant local outcomes vary by county.

The sponsor offered a technical amendment to address the most significant stakeholder concerns — principally restoring funding to entitlement-share recipients and special-revenue accounts via adjusted transfer percentages and a transitional entitlement-share growth guarantee. The committee adopted the technical amendment and then approved the bill as amended. On executive action the committee recorded a roll-call tally showing the bill passed out of committee by a 7–1 vote (Sen. Heyman recorded as the lone no vote). The committee indicated the department would calculate updated fiscal notes as the amendment language is refined.