Bill description: At the heart of this legislation is an increase in the fee from $3 to $3.75 for license plates.

Rating: -1

Analyst’s note: This analysis was originally posted on Feb. 7. It has been updated to more accurately reflect the purpose and classification of these fees.

Does it directly or indirectly create or increase any taxes, fees, or other assessments?

This legislation increases fees for the purchase of all vehicle license plates. This 75-cent increase is a 25 percent increase in the overall cost to individuals. The purpose of this fee increase is to cover a potential deficit in the Plate Manufacturing Account. However, this increase raises far more than what is needed to cover this deficit. The Code states any extra funding in this account, “not anticipated for future production cost increases” shall go to the state Highway Distribution Account. (-1)

Note: Analysis language updated Feb. 24, 2017.