Guinn rejects plan to hike DMV fees

Thursday, April 17, 2003 | 11:11 a.m.

CARSON CITY -- Gov. Kenny Guinn won't accept a proposal to raise the fees charged for first-time vehicle registrations and drivers' licenses, a plan targeted at new residents.

Ginny Lewis, director of the state Department of Motor Vehicles told a legislative budget subcommittee today that she had met with the governor about raising those fees to help support the agency. But she said Guinn would not accept the suggestions.

Under present law the department is entitled to receive 22 percent of the highway fund taxes it collects with the rest going to build roads. But the agency wants to increase it to 29 percent, which would mean an additional $24 million out of the highway construction fund.

Sen. Bob Coffin, D-Las Vegas, has been a leading proponent of increasing fees charged by the motor vehicle department, instead of dipping further into the highway money. He originally suggested doubling the first-time motor vehicle registration fee from $33 to $66 and increasing the driver's license cost to first-timers.

Coffin said today that the motor vehicle department needs more money but it "should not be robbing the highway fund. We're taking away from road building."

Lewis told the subcommittee that an added fee on first time vehicle registration would fall on Nevadans who buy new cars also.

"The pressure on the department comes from those new folks moving into the state." Assembly Speaker Richard Perkins, D-Henderson, said.

The subcommittee agreed to raise the record search fees in the motor vehicle department from $5 to $7. That should being in an extra $2.7 million a year. And the subcommittee also agreed that an expected $11.7 million reserve in the record search division be used by the agency to offset the funds sought from the highway revenue.

The subcommittee also agreed that the department should not be able to exceed the present 22 percent of highway funds. Members said they will search for other fee increases to supplement the revenue of the department.

The subcommittee agreed to finance a $100,000 a year public information program by the department to get residents to use the Internet, mails and smog stations when re-registering their cars.

Meanwhile Assemblywoman Kathy McClain, D-Las Vegas, will testify today before the Senate Transportation Committee on Assembly Bill 30, which could save the state and local governments as much as $4 million annually.

The bill, already approved by the Assembly, would repeal license plate refunds for people moving outside Nevada. The measure would still allow the transfer of license plates by Nevadans who purchase a new vehicle.