Tax Commission urges limits on repeated plate transfers as modern plates degrade

The Utah State Tax Commission told the Senate Transportation Interim Committee that modern printed license plates are failing earlier than traditional embossed plates when repeatedly transferred between vehicles, and recommended guardrails to prevent visibility and enforcement problems.

Jason Gardner, deputy executive director of the Tax Commission, said older embossed plates were durable, but newer printed plates have a laminated film that peels and loses reflectivity when repeatedly transferred. He cited two code sections (41‑1a‑401 and 41‑1a‑701) that allow transfer of modern plates and said the commission wants legislative clarity on whether transfers should be limited, whether plates should be remanufactured after a set number of transfers or years, or whether the practice should be ended.

Gardner said the commission would prefer a policy that balances cost and public safety: options include requiring remanufacture after a threshold age (for example, 10–20 years), remanufacture at the time of transfer, or public education urging sellers and buyers to update registration promptly. Representative Thurston suggested targeting remanufacture to transfers and noted that Colorado recently adopted a replacement approach for older plates.

The committee discussed whether a remanufacture fee could be charged to spread costs and whether dealer practices or private transfers require different responses. No formal legislation was adopted at the hearing; Gardner said the commission will include transfer and replacement issues in its committee bill file for potential interim drafting.