DMV lays out widespread fee increases and warns eliminating state vehicle inspections would cost the state millions

The Department of Motor Vehicles presented a multi-page fee proposal to the Finance Division II that would update fees that in many cases have not changed for more than two decades and estimated the total scope of revenue affected in the tens of millions of dollars.

DMV staff said many license, title and registration fees have been unchanged for 20–25 years. Department staff and members proposed a set of incremental changes — for example increasing small registration fees for agricultural and specialized vehicles, raising certificate‑of‑title fees toward surrounding‑state levels and increasing plate fees to cover the actual production cost. The department estimated the proposed package would increase revenue by millions of dollars over the biennium; a consolidated estimate presented to the committee showed total state fees in the DMV portfolio at roughly $40.8 million (exclusive of boating fees), with potential increases shown in a spreadsheet the department provided to the committee.

On a separate legislative matter, DMV officials warned the panel that HB 649 — a proposal to eliminate the state's vehicle safety inspection program — would cause major revenue losses in the highway fund because the state collects a $3.25 inspection sticker fee per passing inspection. "For last year, 2024, with 1.6 million vehicles that had a safety inspection and passed at the $3.25 mark...you're looking at about $5,200,000 yearly in lost revenue to the state," Director John Marasco told the committee; when failed inspections and OBD failures are added, the department said the net annual loss could approach $6,000,000.

DMV staff said the program is largely self‑funded and that eliminating it would reduce staff costs but not by the full amount of lost inspection revenue. "There is the potential to reduce about eight positions tied to the inspection program," Marasco said, adding that many of those employees perform other duties and the department estimated possible biennial payroll savings at roughly $1.5 million after accounting for the staff the agency could not immediately reassign.

Members pressed the department for more precise numbers for both lost revenue and potential savings; committee staff and DMV agreed to confer offline and provide revised, more granular estimates. Separately, DMV staff said they will prepare a formal amendment based on the fee spreadsheet and the committee indicated support for drafting language to update long‑stale fees so they can be taken up in the HB 2 negotiation.