Why must automobile registrations be renewed?

October 12, 2006 8:53 AM

Why must automobile registrations be renewed?

I suspect that each U.S. state has their own reasons (though I could find none online), and that the actual reason is unwaveringly "to generate revenue," what is the purpose of paying to register my car for a second, third, etc. time?

The only thing I can think of is to confirm once every two years that the owner still possesses the car, and that it hasn't been stolen. But then, isn't that implied every time you don't call to report your car was stolen?

And if the real purpose is just to generate revenue, why not just raise taxes by $40 a year?

posted by bryanjbusch to law & government (9 comments total)

Automobile registrations create a mandatory contact point at which you have to go and see someone to complete the requirement. Usually this is just a financial transaction, but it is not only that.

For example, if a new emissions policy were introduced, it would create an interaction to instruct you face-to-face and optionally check for compliance (via receipt from a service ctr).

Also, it's important to at least minimally validate that a particular person is attached to a particular car. There are likely also security reasons as well - forcing a minimum level of interaction with state mechanisms keeps people honest, or so it would seem that people think.
posted by mikel at 9:02 AM on October 12, 2006

why not just raise taxes by $40 a year?

Usually, car registration revenue is supposed to support specific government agencies that aren't used by non-car owners - pavement upkeep, the motor vehicle bureau, and so on. Whether this is the case or not depends on the municipality.
posted by muddgirl at 9:02 AM on October 12, 2006

Wikipedia notes the United Kingdom's vehicle registration purposes are:

• Vehicle legality checks such as: current safety certification, motor insurance and vehicle licence
• Police traffic law enforcement
• Automated camera enforcement of certain traffic laws

I doubt it differs much in the States. As an outsider's perspective, I can see having some semblance of accurate information who the owner is helps in the above cases. Ergo, registration follows to maintain order.

And of course, the fee. Who knows how that divvies up (transaction cost, road maintenance, baby formula for the ones on board).
posted by pedantic at 9:11 AM on October 12, 2006

IIRC, In same states you can't get a new registration until you've passed vehicle inspection. So it forces people to get things like emissions testing and makes sure that people aren't driving vehicles that are dangerous to themselves and others on the highways.
posted by chrisamiller at 9:33 AM on October 12, 2006

People in Michigan (a non-vehicle inspection state) constantly voice the same question - it seems registration is lost on folks who don't need to pass emissions/safety checks on their cars.

I don't own a car, and would be pretty miffed if I had to pay $40 extra every year because it was assumed I did own one.

At a minimum, as Pedantic mentioned, it forces people to get their auto insurance in order.
posted by sablazo at 9:43 AM on October 12, 2006

why not just raise taxes by $40 a year?

That's what the automobile registration is -- an annual tax on vehicle owners.

In same states you can't get a new registration until you've passed vehicle inspection.

This is true of (at least) Virginia and DC, where they inspect the whole car; and Maryland and California where they test only for emissions (the smog check). Depending on the jurisidiction and vehicle age, these tests may not be required every year.
posted by Rash at 9:46 AM on October 12, 2006

In Connecticut, vehicles are taxed at property tax rates, like houses, and that money goes to the local government. To this end, the town tax assessor gets a "Grand List" every year from the DMV that lists all the cars that are registered in that town. Yearly registrations keep the list correct and current.
posted by smackfu at 10:38 AM on October 12, 2006

Historically registration has been an antitheft and antifraud measure. Like much regulation if you follow the history of VINs and registration regulations you'll often see a specific case that led to a change in the law. Once the goverment had that list they found all sorts of creative ways to use that infomation including as a serious form of revenue (like Washington used to be) and as a way of enforcing other laws. Some counties have made it illegal to store an unregistered vehicle on your property are require a safety inspection for registration as a way of combating "unsightly" vehicles.

Where car registration procedures are fairly uniform across Canada and the US trailers are wide open. In Alberta you pay a single lifetime registration fee when you buy a plate. In BC you pay every year. In some states you only need to register if your trailer has brakes or is licensed over a certian mass. And in some states you register your boat trailer with the boat and pay a single fee.
posted by Mitheral at 3:07 PM on October 12, 2006

As I understand it, here in Sydney Australia, registration renewal requires a "road worthy" every year you do it. So, for here at least, it's about making sure the car is still supposed to be on the road!

Of course, all states in Australia do rego and yet not all require this yearly safety check, so apart from that, I guess it is just a good way to collect revenue for upkeep of roads etc...
posted by ranglin at 4:59 PM on October 12, 2006