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Senate rejects luxury-vehicle fee bill after hours of debate; measure indefinitely postponed
Summary
After extensive floor debate about out-of-state registrations, economic effects and funding for bridges and law enforcement, the Senate failed SB324 on second reading (24-26) and then voted to indefinitely postpone the measure (29-21).
Senate Bill 324, a bill to revise vehicle registration fees and allocate revenue to the highway patrol, Department of Transportation projects and a new bridge fund, was the focal point of prolonged debate on April 1. Sponsor Senator Kazmaier (transcript name variations: Kazmaier/Casimir/Kasmayer) framed the bill as using one-time revenue from higher fees on certain high-value vehicles to fund highway and bridge projects and public safety needs. He said the measure would raise revenue for the highway patrol and create a bridge fund.
Opponents raised concerns that most of the affected registrations are by out-of-state owners who use Montana’s LLC registration system to avoid sales tax. Senator Usher and others warned that raising the fees would push those businesses away and reduce the administrative revenue counties currently receive. Senator Mandeville argued the bill would ‘‘kill the golden goose’’ — driving business out of state — and urged a no vote. Senators representing rural and motorhome-owning districts said the bill would harm constituents who own motor homes or rely on low registration costs.
The Senate first voted on second reading, and the motion failed, 24-26. After that failure the majority leader moved to indefinitely postpone SB324; that motion passed 29-21, removing the bill from further consideration for this session. Floor record shows a divided chamber and multiple senators urging more work on the revenue assumptions and coordination with House language before revisiting a similar proposal.
Sponsor Kazmaier said the proposal targeted ‘‘out of state millionaires’’ and defended the policy as raising money from nonresidents rather than constituents; critics disputed the fiscal assumptions and warned of unintended economic loss.
With SB324 postponed, senators indicated they will continue considering other vehicle-registration and tax items, including SB327 (a separate, technical registration-fee bill that passed second reading today).
