ALABAMA
DEPARTMENT OF REVENUE
MOTOR
VEHICLE DIVISION
810-5-1-.211 Motor
Vehicle Registration Delinquency Penalty and Interest Charges.
(1) Penalties
for the late registration of a motor vehicle are codified in Sections
40-12-260(a)(5) and 32-6-65(b), Code of
(2) Act 2004-529, effective August 1, 2004,
increases the number of days to register a newly acquired vehicle from ten (10)
days to twenty (20) days. The Department
of Revenue construes the provisions of Section 40-12-260(a)(4)a.,
where the Code, after the Act 2004-529 amendment, continues to indicate a
10-day period for vehicle transfers, as being in error, and that registrants,
effective August 1, 2004, have 20 days from date of purchase or acquisition to
register a newly acquired vehicle without penalty. The Department takes this position based on
Alabama court decisions where it was held that the bill’s synopsis indicate the
legislative intent, and decisions that have held that if a particular code
section contains conflicting information, the later data is to be considered
the intent of the Legislature.
(3) The Department of Revenue interprets the
20-day provisions of Act 2004-529 as being effective for any motor vehicle registered August 1, 2004 or thereafter. Therefore, if a motor
vehicle is acquired in the month of July 2004, and the 10-day “grace period” to
register the vehicle ends in the month of August 2004, license plate issuing
officials shall construe the new law as extending the 10-day grace period to 20
days. Example: a new vehicle is acquired on July 26,
2004. The ten-day period to register the
vehicle begins on July 27, 2004 and extends into August. Thus, because Act 2004-529 becomes effective
on August 1, 2004, the purchaser is given an additional 10 days to register his
newly acquired vehicle.
(4) In determining the 20-day penalty free
period, the day the vehicle was actually acquired is not included in the
calculations (see Section 1-1-4, Code of Alabama 1975 and opinion of the
Attorney General to Honorable Walker Hobbie, Judge of
Probate,
(5) In calculating the 20 day penalty and
interest “grace period,” if the 20th day falls on a Saturday,
Sunday, holiday, or any day that the county issuing office is closed, the
vehicle owner may register his or her vehicle the next business day without
penalty and interest charges as per
(6) If someone is issued a current and valid
(7) If someone is issued a current and valid
temporary license plate for his or her newly acquired vehicle in another
jurisdiction, penalty and interest shall not be charged when registered while
the temporary plate is valid, even if the 20th day occurs before the
temporary plate expires. Provided, the
temporary plate acquired from another jurisdiction must have been secured
within the 20-day “grace period” from date purchased or acquired.
(8) Section 32-6-65(b), in defining the
phrase “late registration of a motor vehicle” uses the phrase “date of purchase
or acquisition.” There are many ways one may acquire a motor vehicle, including:
(a) Gift,
(b) Prize,
(c) Divorce settlement,
(d) Estate settlement.
(9) It is the responsibility of
anyone acquiring a vehicle to prove to the satisfaction of the license plate
issuing official the date the vehicle was acquired, if the vehicle was operated
with a temporary license plate, and any other factor that would assist the
issuing official in determining when the registration fee liability attaches,
and if delinquency penalty and interest charges are due.
(10) Situations
sometimes occur where the date of
purchase is different from the date
of acquisition. In cases where the
registrant can document to the issuing official that the newly acquired vehicle
was not received by the owner until a date subsequent to the purchase date,
penalty and interest shall not be charged if the vehicle is registered within
20 days of the acquisition date.
Example: Someone acquiring a new
truck from a dealership, as part of the purchase contract, requires the dealer
to paint the truck and add special equipment, and such changes result in the
new owner not taking possession of the truck until several days after the date
shown on the title application as the purchase date.
(11) Situations
sometimes occur where a purchaser will acquire a motor vehicle, have it
delivered by the selling dealership to the purchaser’s location, where it is
stored until weeks or months later when the purchaser needs to place the
vehicle into service. If the purchaser
documents to the license plate issuing official that the vehicle was delivered
by the seller and not subsequently operated on the public highways prior to the
vehicle being registered, the issuing official shall charge no late
registration penalty or interest.
(12) Under
provisions of the Alabama Certificate of Title and Antitheft Act, a salvage
motor vehicle may be rebuilt and operated on the public highways. In such cases, upon inspection and the
issuance of an application for certificate of title for the rebuilt vehicle by
the Department of Revenue, the vehicle shall be registered within 20 days of
the date shown on the application for certificate of title without penalty or
interest charges attaching (unless the registration fee liability does not
attach, for example, if the rebuilt vehicle is acquired by and immediately
placed into dealer inventory).
(13) There
are situations where owners acquire motor vehicles to be used
exclusively on private property and not on the “public highway” as that term is
defined in Section 40-12-240. In the
event the owner needs to operate the vehicle on the public highways, before
operating, the owner must first register the vehicle – there is no 20-day grace period in
such cases. In the event the vehicle is
operated on the public highways without the registration having been acquired
before operation, delinquency penalties and interest charges are due when the
vehicle is subsequently registered. Provided, the Department does not interpret vehicle operation on
the public highways to include a movement directly from one side of a public
highway to the opposite side of the highway (for example, to move the vehicle
from plant sites directly across the highway from each other).
(14) In the event someone leases a motor vehicle,
the lease date is the date of acquisition, and the registration fee liability
attaches on the lease date, unless the lessor or
lessee can provide evidence that the lessee did not receive control and
possession of the vehicle on the lease date.
(15) In the event a licensed motor vehicle dealer
moves a vehicle from his/her vehicle sales inventory to be used as daily rental
vehicle, the motor vehicle dealer shall certify to the issuing official the
date that the vehicle was placed into the rental inventory, or the date that
the vehicle was first used as a rental vehicle, whichever date is first, in
order for the issuing official to determine if delinquency penalty and interest
charges accrue. This same requirement is applicable if the vehicle is removed
from dealer inventory for use as a service vehicle, etc.
(16) In
the event a manufacturer of motor
vehicles elects to sell a motor vehicle to the employee of the manufacturer
or direct to a retail customer, the liability for registration fees would begin
at the date of purchase or acquisition, with the purchaser having the 20-day
grace period to acquire registration.
(17)
In accordance with the opinion of the Attorney General issued to the
Honorable Larry Prince, Tax Assessor, Franklin County, under date of June 2,
1993, during the 20-day period a newly acquired vehicle may be operated without
a current and valid Alabama license plate being displayed on the vehicle, if
the owner has not secured a new registration for the vehicle.
(18) In
accordance with the provisions of Section 40-12-260(b)(1)(2) and (3), during
the 20-day grace period from purchase date or acquisition date, the operator of
the newly acquired vehicle must retain with the vehicle the ownership
document(s) authorized in these law subsections for possible presentation to
law enforcement. Provided, if the person
acquiring the vehicle has a current and valid license plate formerly registered
to another vehicle he/she previously owned, said license plate may be affixed
to newly acquired motor vehicle.
(19) If
the newly acquired motor vehicle is a truck or truck tractor with a gross
weight exceeding 10,000 pounds, or is a commercial bus, while the registration
may be secured without penalty during the 20-day period following the date of
purchase or acquisition, operation of the truck, truck tractor or commercial
bus on the public highways, without a current and valid license plate may
subject the operator to law enforcement sanctions; particularly, if the vehicle
is operated outside the State of Alabama.
(20) If the owner of a newly acquired motor
vehicle seeks to register the vehicle by transferring the current and valid
registration from a vehicle he/she continues to own, in accordance with the
provisions of Section 40-12-260, such transfer cannot be made. If, however, the owner can document to the
satisfaction of the license plate issuing official that the previously owned
vehicle was sold or otherwise disposed of prior to the acquisition of new vehicle,
the transfer may be made. Provided, if
the owner of the newly acquired vehicle can document to the satisfaction of the
license plate issuing official that the previously registered vehicle was
junked or destroyed thereby rendering it inoperable, although he or she
continues to own the vehicle, prior to the acquisition of the new vehicle, the
issuing official may transfer the license plate from said vehicle to the newly
acquired vehicle within the 20-day period without registration penalty or
interest charges.
(21) In the event an Alabama resident acquires a
motor vehicle in another state, and operates the vehicle in that jurisdiction,
or outside the State of Alabama, for days, weeks, or months, perhaps using
temporary plates from the jurisdiction where vehicle was purchased, the 20-day penalty
free period shall begin on the day following the date the vehicle enters the
State of Alabama, as the registration fee liability attaches upon vehicle
operation upon Alabama public highways.
(22) Generally, any vehicle subject to
registration fee or ad valorem tax exemption is not exempt from penalty and
interest charges. However, vehicle
owners, under laws providing for exemption of “charges of any nature
whatsoever” (such as Section 40-9-12) are exempt from penalty and interest
charges.
(23) The Department of Revenue interprets the $15
penalty levied under Section 32-6-65(b) for “the failure to register the
vehicle within 20 calendar days of the date of purchase or acquisition” as
being applicable when the vehicle owner has no current and valid Alabama
license plate that can be transferred to the newly acquired vehicle. In the case where the vehicle owner has a
current and valid Alabama license plate which was removed from a vehicle that
was sold, junked or destroyed, and fails to transfer said license plate to the
newly acquired vehicle within 20 days of purchase or acquisition, only the
transfer penalty imposed under Section 40-12-260 (a)(5) shall be applicable.
(24) Section 32-6-65(b) provides for a $15 penalty
for anyone failing to renew his or her vehicle registration during his or her
designated renewal month. In the event a motor vehicle owner has a current and
valid Alabama license plate that may be transferred to a newly acquired
vehicle, and fails to do so within the 20-day grace period, and also fails to
timely renew his or her vehicle registration in the designated renewal month,
both the $15 transfer penalty and the $15 penalty authorized under Section
32-6-65 (b) for failure to timely renew shall be applicable.
(25) If the last day of the registrant’s renewal
month(s) falls on a Saturday, Sunday, holiday, or other day that the issuing
office is closed, the registrant may renew his or her vehicle registration
without penalty or interest charges during the next business day.
(26) Some
(27) Section 40-12-10(f) provides that a
license-issuing official cannot “fail to collect such penalties when issuing
such license.” However, anyone determined to be subject to a registration law
penalty may, after paying the penalty, elect to request a hearing with the
Department of Revenue’s Administrative Law Division to seek a refund of the
penalty charges.
(28) The Department of Revenue interprets the
penalty provisions found in Sections 40-12-260 and 32-6-65 as not being
applicable when the following registrations are issued:
(a) State, county, municipal government,
Public Utility Department vehicles.
Vehicles owned by volunteer fire department license
plates as authorized under Section 40-12-250.
(b)
(c) Dealer and dealer motorcycle plates and
Manufacturer plates (see Section 40-12-264).
(d) Temporary license plates.
(29) Under the provisions of Section 40-12-262, a
non-resident moving to the State of Alabama with a current and valid
out-of-state registration has 30 days following the date the vehicle enters the
state to obtain an Alabama registration.
Anyone failing to timely register their vehicle is subject to a
registration penalty under Section 32-6-65(b).
Note that this 30-day period is based on the vehicle owner having a
current and valid out-of-state registration; if not, the vehicle must be
registered immediately. Provided, if the vehicle is exempt from registration in
its former base jurisdiction, registration for the vehicle must be accomplished
within 20 days following the date the vehicle enters the state.
(30) Section 40-12-249(b) provides for a 25%
penalty on the difference between fees paid and fees due when someone is cited
with operating a vehicle with the incorrect class of license plate. This penalty refers to situations where the
registrant’s vehicle is improperly registered with a lower weight license plate
category than required, or when the registrant is operating a vehicle with one
class license plate when another class license plate is required.
(31) In situations where a vehicle is operated
during the renewal month(s) after the previous registration expired with an
improper class license plate, the operator can be cited for improper license
plate for the previous registration year, with the 25% penalty applicable.
Additionally, the registrant would owe registration fees for the proper
classification of license plate for the current registration period.
(32) In the event a person acquires a vehicle in a
month other than their designated renewal month, and registers it with an
improper classification license plate, the 25% penalty shall be based on the
difference between the prorated fees for the license plate classification that
should have been obtained beginning for the month the vehicle was acquired, and
the prorated fees for the license plate classification that was obtained.
(33) Section 40-12-10(d) authorizes the
collection of a citation fee when a “Notice to Obtain License Plate” is issued,
and requires that the issuing official collect the citation fee “before issuing
any license.”
(34) The term “citation” as used in Section
40-12-249(b) refers to the “Notice to Obtain License Plate” as authorized in
Section 40-12-10, and does not refer to Uniform Traffic Tickets.
(35) Section 40-12-10(e) requires the license
plate issuing official to collect interest when issuing a delinquent motor
vehicle registration. Interest charges
are calculated based on the provisions of Section 40-1-44, with the Department
of Revenue providing notice of interest rate changes to the license plate
issuing officials. (Adopted through APA
November 2, 2004, effective December 7, 2004)(Authority: Sections 40-2A-7(a)(5), 32-6-61, 32-6-65, 40-12-242, 40-12-260 and 40-12-264, Code
of Alabama 1975)
Motor
Vehicle Rules Numeric Index