Hoosiers could save money if BMV overhauls complicated fee system

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.
Data pix.

INDIANAPOLIS, Ind. (March 3, 2016) - A bill is one step closer to making BMV visits a whole lot easier. Not only that, if this measure passes and gets signed into law by Governor Mike Pence, Hoosiers could be looking at saving some money.

A visit to the BMV can be a confusing and costly process, but help is on the way. Indiana lawmakers are looking to save more than two million Hoosiers, potentially thousands of dollars.

“What that means is that Hoosiers will see a reduction or elimination of about 163 different fees,” said BMV Spokesperson Josh Gillespie.

You can throw out the current fee structure; more than 160 fees will be reduced or eliminated altogether.

“It also streamlines the registration and driver’s license process,” said Gillespie.

Currently, there are 191 ways you can register your vehicle. This overhaul would take that number to 23. Right now, there are 21 different weight classes for various private and commercial vehicles. That number would change to eight.

“When you go get your license or go register your car, it’s much more of a smooth procedure than it used to be. People should be much less confused by it so I think it’s a win-win,” said State Senator Carlin Yoder (R – Middlebury) a co-sponsor of the bill.

It’s a win-win following two years of fallout. The BMV overcharged thousands of Hoosier motorists more than $100 million. The overcharges happened in part lawmakers say because the BMV fee system is so confusing.

“Hoosiers for the most part are not going to be harmed financially by this overhaul, in fact a lot of people will reap the benefits financially because of what we’re doing,” said Yoder.

The bill still has to be approved by the Governor. If it is signed into law it goes into effect on January 1, 2017.

The BMV would actually lose out on roughly $200,000 in revenue from this proposal but lawmakers say BMV officials have agreed to bite the bullet, knowing they had to make changes after a rough two years.

Overall, the proposal includes eight fee increases. Among them, late fees for registration, that fee, currently $5 would increase to $15. For licenses it would go from $5 to $6.

Overall though, the proposal is considered revenue neutral, meaning while some fees do increase, most Hoosiers will be paying less at the BMV.

Latest News

More News