Friday, January 22, 2010

Ohio is Upset Over BMV Late Fees

I was amused to read an article about this in the Wapakonta Daily News. The article stated that the Bureau of Motor Vehicles changed the expiration date on registrations to correspond with the owner's birth date in 1989 "in order to remain in compliance with the law." If this is indeed true, the law was re-written because the people were getting irate over having to stand in ever expanding lines (along with everyone else in the state) during the two months of the year (April & May) that registrations were renewed. As the population and the number of vehicles in the state increased, so did the size of the lines and the rage of the population. Deputy Registrars back then were slammed for 2 months and then many were done for the year. The new law made it simpler because it spread out the work load and also allowed residents to register by mail. It also saved the state big dollars because they didn't have to add temporary registration sites every year.

In October 2009, the Ohio legislature approved adding a late fee to renewals and increasing other fees. They were part of a series of new and higher fees added to state transportation budget last year. That's their way of saying Ohio can't afford to pay for the State Highway Patrol. I guess they don't get enough money from speeding tickets and DUI arrests anymore.

Adding a late fee is certainly one way to get people to remember that their birthday means more than just being another day older. Every one of us should be able to do that. After all, we get a form in the mail for our tags (not sure about license renewals). But, isn't $20 per renewal just a little steep, especially in this time of economic uncertainty. Driver's license renewals have already soared in this state. Now, if you forget, it's going to cost around $45 to renew your drivers license with this fee. According to the BMV fee schedule, this new late fee (which doesn't apply if you pay within 7 days after your birthday) is an increase of 80% over the normal renewal without the usual $3.50 registrar's fee that is added on to the total. They have also raised the driver's license renewal rate by adding a vision check fee of $2.75 and a $1.50 lamination fee to the $25.75 renewal fee (+16%) without being late. Being late by 8 days means you will pay an additional 108%. And why does a temporary permit cost more depending on your age when you get it? http://www.bmv.ohio.gov/fees_for_services.stm.

The BMV has stated in this and several other articles I read that the change was widely publicized in BMV offices and in renewal statements sent out after October 1st (fee started in October). Most people don't see posters hanging in the BMV office until they go to get their renewals, so just how does that help get the word out? "Oh, by the way, you're being taxed on your license renewal for coming in late. But you can avoid that next year by remembering to be on time!" And how many of us read beyond the make and model of our car when we get those statements in the mail? We know it needs to be done, but it's two months away. Sounds like a government run organization trying to pass the buck to me!

I googled "BMV Late Fee" and found a website that showed the budget for the BMV for the last and next few years. It showed income from late fees through 2014 as a flat $10,000 per year. Another article that caught my eye was run in the Dayton Daily News on January 21, 2010 and states that, since inception, there have been 329,000 such fees collected for a total of $6.4 Million. BIG WINDFALL! http://www.daytondailynews.com/news/ohio-news/ohio-drivers-hit-with-329-000-late-fees-503349.html

On top of that, the state decided last year to close BMV offices to save money (for themselves, not the people who have to drive further). Like the post office distribution center closing contemplated in Lima, BMV offices were closed that were performing better than ones they kept open. Now, I have found it more convenient to pay for a stamp and mail my registration in. I won't see the Local BMV office (now 15 miles away) but once every 4 years. (Hope I'm not late for the next tax or late fee). So, by having to drive further, the rate increase for license renewals extends to titles, transfers, and other services that must be handled at the BMV office.

Car and truck tags are already stacked with fees and local taxes. A penalty of 50% to over 100% is unacceptable. Even real estate and local utilities penalize only 10% for being late. License renewals have more than doubled without added taxes and late fees.

The people should be outraged. The state is trying to rebuild it's general fund by gouging the general population one more time. The BMV is getting slammed with calls. And you can call and voice your opinion also. But I would contact my state representatives as they are the ones that approved the fees. Maybe they would be willing to put slot machines at the rest stops to pay the State Highway Patrol.