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Revenue seeks $2.6M for electronic lien/title system; warns of underreported tire-tax receipts
Summary
Commissioner Gerigano asked for $2.6 million to implement an electronic lien and title system required by Public Chapter 745 and described steps to modernize scanning and insurance verification; he also warned that tire‑tax reporting is under‑reported because an information line on returns is voluntary.
The Department of Revenue told senators it is requesting a $2.6 million increase to fund an electronic motor vehicle lien-and-title system required by recent legislation (public chapter referenced in the hearing). Commissioner David Gerigano said the cost is offset by a $2 fee collected from service providers and borne by lienholders, not directly by vehicle purchasers.
"In 2024, the General Assembly enacted public chapter 7 45, that set up, a goal in terms of when that would be completed," Commissioner Gerigano said, explaining the ELT system will create secure electronic records and only print a paper title on owner request. He said the $2 fee will be collected from service providers (banks' vendors) and passed through to the vendor supporting the state system.
Members also questioned the department about the newly reallocated tire tax reporting line: the department said vendors are not required to complete the informational tire-sales line on the sales-tax return (no penalty if omitted), which leads to underreporting of the amount to allocate to the tire fund; current estimates are about $80 million annually while reported monthly allocations are roughly $2 million. The department recommended additional outreach and education to improve compliance with the informational reporting line.
