Dealer Manual Table Of Contents 167575 SOS 7

User Manual: 167575

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Table of Contents

Page 1

Page

Table of Contents
Introduction
Important Telephone Numbers
Chapter 1: Licensing Requirements
1-1

Licensing of Dealers ...........................................................................................................1
1-1.1
1-1.2
1-1.3
1-1.4

1-2

Established Place of Business............................................................................................1
1-2.1
1-2.2a
1-2.2b
1-2.3
1-2.4
1-2.4
1-2.5

1-3

Requirement ..................................................................................................................... 5
License Termination ........................................................................................................ 5
Authority .......................................................................................................................... 5

Fleet Insurance ...................................................................................................................5
1-6.1

1-7

Requirement ..................................................................................................................... 4
Business Hours ................................................................................................................ 4
Change in Business Hours ............................................................................................... 5
Sunday Sales .................................................................................................................... 5

Surety Bond ........................................................................................................................5
1-5.1
1-5.2
1-5.3

1-6

Requirements ................................................................................................................... 4

Business Hours ...................................................................................................................4
1-4.1
1-4.2
1-4.3
1-4.4

1-5

Authorization ................................................................................................................... 1
Established Place of Business Requirements for New and Used Vehicle Dealers ........... 2
Established Place of Business Requirements for Wholesaler Vehicle Dealers ............... 3
Requirements for All Vehicle Dealers ............................................................................. 3
Two Dealers at One Location .......................................................................................... 3
Additional Locations in Same County ............................................................................. 4
Another County................................................................................................................ 4

Workers’ Compensation Insurance .................................................................................4
1-3.1

1-4

Authorization ................................................................................................................... 1
License Expiration ........................................................................................................... 1
Un-renewed License ........................................................................................................ 1
Trailers ............................................................................................................................. 1

Requirements ................................................................................................................... 5

Dealership Changes ...........................................................................................................6
1-7.1
1-7.2

Requirements ................................................................................................................... 6
Application ...................................................................................................................... 6

Revised April 2017

Table of Contents

Page 2

Page
1-8

Change of Address or Change of Business Name ...........................................................6
1-8.1
1-8.2
1-8.3
1-8.4

1-9

Change of Ownership ........................................................................................................7
1-9.1
1-9.2
1-9.3
1-9.4
1-9.5

1-10

Dealer Selection for Designated Branches ....................................................................... 9
EFT ................................................................................................................................ 10

Dealer Classifications.......................................................................................................10
1-13.1
1-13.2
1-13.3
1-13.4
1-13.5
1-13.6
1-13.7
1-13.8
1-13.9
1-13.10
1-13.11
1-13.12

1-14

Requirements ................................................................................................................... 9
Vehicles in Inventory ....................................................................................................... 9

Designated Branches ..........................................................................................................9
1-12.1
1-12.2

1-13

Supplemental Locations ................................................................................................... 8
Temporary Sales Locations .............................................................................................. 8
Temporary Sales Locations – RV Dealers ....................................................................... 8

Going Out of Business .......................................................................................................9
1-11.1
1-11.2

1-12

Requirement ..................................................................................................................... 7
Corporations..................................................................................................................... 7
Partnerships...................................................................................................................... 7
Limited Liability Companies ........................................................................................... 7
Individual Ownership....................................................................................................... 8

Additional Sales Locations ................................................................................................8
1-10.1
1-10.2
1-10.3

1-11

Postal Changes ................................................................................................................. 6
Moves within Same County ............................................................................................. 6
Moves from One County to Another................................................................................ 6
Change of Name .............................................................................................................. 6

Requirements ................................................................................................................. 10
Class A (New Vehicle Dealer) ....................................................................................... 10
Class B (Used Vehicle Dealer) ...................................................................................... 11
Class C (Used Vehicle Parts Dealer).............................................................................. 11
Class D (Broker) ............................................................................................................ 12
Class E (Distressed Vehicle Transporter) ...................................................................... 12
Class F (Vehicle Scrap Metal Processor) ....................................................................... 12
Class G (Vehicle Salvage Pool) ..................................................................................... 12
Class H (Foreign Salvage Vehicle Dealer)..................................................................... 13
Class R (Automotive Recycler)...................................................................................... 13
Salvage Vehicle Agent License...................................................................................... 14
Class W (Wholesaler Vehicle License) .......................................................................... 15

Dealer Plates .....................................................................................................................15
1-14.1
1-14.2
1-14.3
1-14.4
1-14.5
1-14.6
1-14.8
1-14.8

Authorization ................................................................................................................. 15
Proper Use ..................................................................................................................... 15
Improper Use ................................................................................................................. 16
Sanctions ........................................................................................................................ 16
Dealer Plate Frames ....................................................................................................... 17
Loss of Plate................................................................................................................... 17
Tracking Dealer Plates ................................................................................................... 17
Destroying Expired Dealer Plates .................................................................................. 17
Revised April 2017

Table of Contents

Page 3

Page
1-15

Repair Facility Service.....................................................................................................17
1-15.1

Repair Facility Agreement ............................................................................................. 17

Chart: Original Vehicle Dealer Application Requirements................................................ 19

Chapter 2: Record Keeping Requirements
2-1

Required Records...............................................................................................................1
2-1.1
2-1.2
2-1.3
2-1.4
2-1.5
2-1.6
2-1.7
2-1.8
2-1.9
2-1.10
2-1.11
2-1.12

2-2

Police Book .........................................................................................................................5
2-2.1
2-2.2
2-2.3
2-2.4

2-3

Restrictions ...................................................................................................................... 6
Use ................................................................................................................................... 7

Supplemental Location Records .......................................................................................7
2-4.1
2-4.2

2-5

Description ....................................................................................................................... 5
Requirements ................................................................................................................... 5
Distressed (Salvage/Scrap-titled) Vehicles – Additional Requirements........................... 6
Dismantled Vehicle Requirements ................................................................................... 6

Washout System.................................................................................................................6
2-3.1
2-3.2

2-4

Records Requirements ..................................................................................................... 1
Record Retention ............................................................................................................. 1
Electronic Records ........................................................................................................... 1
Class A Dealers ................................................................................................................ 1
Class B Dealers ................................................................................................................ 2
Class C and Class R Dealers ............................................................................................ 3
Class D Brokers ............................................................................................................... 3
Class E Dealers ................................................................................................................ 3
Class F Dealers ................................................................................................................ 3
Class G Dealers ................................................................................................................ 4
Class H Dealers ................................................................................................................ 4
Class W Dealers ............................................................................................................... 4

Records Required ............................................................................................................. 7
Records Retention Exceptions ......................................................................................... 7

BFS-4 15-Day Temporary Registration Log ...................................................................7
2-5.1
Records Required ............................................................................................................. 7
2-5.2
Requirements ................................................................................................................... 7
Sample Form: Temporary Registration Log ................................................................................. 9

Chapter 3: Titling and Registration
Revised April 2017

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Page 4

Page
3-1

Titles ....................................................................................................................................1
3-1.1
3-1.2
3-1.3
3-1.4
3-1.5

3-2

Wholesale Transactions .....................................................................................................4
3-2.1
3-2.2

3-3

Disclosure Requirements – Rebuilt Salvage Vehicle ....................................................... 8
Disclosure Requirements – New Vehicle Damage........................................................... 8
Disclosure Requirements – Driver Education Vehicles ................................................... 9

Appointment of Agent Forms (Power of Attorney) ........................................................9
3-8.1
3-8.2
3-8.3

3-9

Requirements ................................................................................................................... 8

Disclosure Statements ........................................................................................................8
3-7.1
3-7.2
3-7.3

3-8

By Seller .......................................................................................................................... 7
Errors in Title Reassignments .......................................................................................... 8

Odometer Mileage Disclosure Statements .......................................................................8
3-6.1

3-7

Authority .......................................................................................................................... 6
Requirements ................................................................................................................... 6
Conducting an Off-Lease Vehicle Transaction ................................................................ 6

Title Assignments ...............................................................................................................7
3-5.1
3-5.2

3-6

Authority .......................................................................................................................... 4
Requirements ................................................................................................................... 4
Transfer of Interest ........................................................................................................... 4
Assigning Security Interest .............................................................................................. 5

Off-Lease Purchases ..........................................................................................................6
3-4.1
3-4.2
3-4.3

3-5

Instructions....................................................................................................................... 4
Resale Titles..................................................................................................................... 4

Retail Transactions ............................................................................................................4
3-3.1
3-3.2
3-3.3
3-3.4

3-4

Authority .......................................................................................................................... 1
Requirement ..................................................................................................................... 1
Title Possession Exceptions ............................................................................................. 1
Proof of Ownership .......................................................................................................... 3
Proper Title Assignments ................................................................................................. 3

Authority .......................................................................................................................... 9
Prohibition ....................................................................................................................... 9
Use ................................................................................................................................... 9

Temporary Registrations ................................................................................................10
3-9.1
3-9.2
3-9.3

Availability .................................................................................................................... 10
Authorized Use .............................................................................................................. 10
Unauthorized Use .......................................................................................................... 11
Table 1: Types of Vehicle Registrations ................................................................................. 12

3-10

30-Day In-transit Registration (Retail Transactions Only) .........................................13
3-10.1
3-10.2

In-Transit Registration Authority ................................................................................... 13
Export Sales ................................................................................................................... 13
Revised April 2017

Table of Contents

Page 5

Page
3-10.3
3-10.4
3-10.5
3-10.6

3-11

Resale Titles ......................................................................................................................14
3-11.1
3-11.2
3-11.3
3-11.4

3-12

Proof of Insurance .......................................................................................................... 13
Out-of-state Address ...................................................................................................... 13
Instructions..................................................................................................................... 13
Lost Ownership Documents ........................................................................................... 14

Requirements ................................................................................................................. 14
Prohibition ..................................................................................................................... 14
Application .................................................................................................................... 15
Legend ........................................................................................................................... 15

Lost Titles .........................................................................................................................15
3-12.1
3-12.2
3-12.3
3-12.4

Authority ........................................................................................................................ 15
Surety Bond ................................................................................................................... 15
Self-certification of Ownership ...................................................................................... 16
Out-of-state Dealers ....................................................................................................... 16

3-13

Trade-in Vehicle ...............................................................................................................16

3-14

Rescinded (Cancelled) Deals ...........................................................................................17
3-14.1
3-14.2
3-14.3

Instructions..................................................................................................................... 17
Sales Tax Credit ............................................................................................................. 17
Registration Fee Refund ................................................................................................ 18

3-15

Expeditious Title Service .................................................................................................18

3-16

Instant Titles (While-You-Wait Service) .......................................................................19
3-16.1
3-16.2
3-16.3

3-17

Driver Education Vehicles ..............................................................................................19
3-17.1
3-17.2
3-17.3

3-18

3-20

Requirements ................................................................................................................. 19
Sales Tax........................................................................................................................ 20
License Plates ................................................................................................................ 20

Selling a Motor Vehicle to a Minor ................................................................................20
3-18.1
3-18.2

3-19

Locations........................................................................................................................ 19
Eligible Transactions ..................................................................................................... 19
Instant Title Checklist .................................................................................................... 19

Authority ........................................................................................................................ 20
Instructions..................................................................................................................... 20

Acquiring a Vehicle – Previous Owner Deceased .........................................................20
Wrong Title or MCO with an RD-108 ...........................................................................21
3-20.1
3-20.2
3-20.3
3-20.4

Instructions..................................................................................................................... 21
Used Vehicle Titled in Error .......................................................................................... 21
New Vehicle Titled in Error........................................................................................... 22
Record Deletion ............................................................................................................. 22

Revised April 2017

Table of Contents

Page 6

Page
3-21

Demonstrator Title – Class A Dealers Only...................................................................22
3-21.1
3-21.2

3-22

Courtesy Deliveries ..........................................................................................................23
3-22.1
3-22.2
3-22.3

3-23

Authority ........................................................................................................................ 22
Titling a Demonstrator Vehicle ...................................................................................... 23

Authority ........................................................................................................................ 23
Requirements ................................................................................................................. 23
Instructions..................................................................................................................... 23

Canadian or Other Imported Vehicles ..........................................................................24
3-23.1
3-23.2

Authority ........................................................................................................................ 24
Requirement ................................................................................................................... 24

Chapter 4: Odometer Mileage Disclosure Requirements
4-1

Disclosure ............................................................................................................................1
4-1.1
4-1.2
4-1.3

Authorization ................................................................................................................... 1
Record Retention ............................................................................................................. 1
Record Accuracy.............................................................................................................. 1

4-2

Exempt Vehicles .................................................................................................................2

4-3

Conforming vs. Nonconforming Titles .............................................................................2
4-3.1
4-3.2

4-4

Odometer Mileage Disclosure Statements .......................................................................3
4-4.1
4-4.2
4-4.3
4-4.4
4-4.5
4-4.6

4-5

Requirements ................................................................................................................... 3
Retail Transactions........................................................................................................... 3
Multiple Buyers or Sellers ............................................................................................... 3
Wholesale Transactions ................................................................................................... 3
Inventory Lender Transactions......................................................................................... 3
Out-of-state Titles ............................................................................................................ 3

Certificates of Origin (MCO/MSO) .................................................................................4
4-5.1
4-5.2

4-6

Conforming Titles ............................................................................................................ 2
Nonconforming Titles ...................................................................................................... 2

Requirement ..................................................................................................................... 4
Vehicles Never Titled ...................................................................................................... 4

Replacing or Repairing an Odometer ..............................................................................4
4-6.1
4-6.2

Actual Odometer Mileage Disclosure Reading Known ................................................... 4
Unable to Register Same Mileage .................................................................................... 4

4-7

Door Frame Stickers ..........................................................................................................4

4-8

Vehicles Without or With Broken Odometers ................................................................5
4-8.1
4-8.2

Requirements ................................................................................................................... 5
Completing Odometer Mileage Disclosure Statement ..................................................... 5
Revised April 2017

Table of Contents

Page 7

Page
4-9

Kilometers vs. Miles ...........................................................................................................5
4-9.1
4-9.2

Instructions....................................................................................................................... 5
Applying for Michigan Resale Title................................................................................. 5

Chapter 5: Distressed Vehicles
5-1

Salvage Titles and Scrap Titles .........................................................................................1
5-1.1
5-1.2

Authorization ................................................................................................................... 1
Distressed Vehicles .......................................................................................................... 1

5-2

Late Model Vehicles ...........................................................................................................2

5-3

Salvage Vehicles .................................................................................................................2
5-3.1
5-3.2
5-3.3
5-3.4
5-3.5
5-3.6

5-4

Salvage Disclosure..............................................................................................................3
5-4.1
5-4.2
5-4.3
5-4.4
5-4.5

5-5

Definition ......................................................................................................................... 2
Requirement ..................................................................................................................... 2
Applying for Salvage Title ............................................................................................... 2
Major Component Parts ................................................................................................... 2
Selling at Wholesale ........................................................................................................ 3
Selling to Non-dealers...................................................................................................... 3

Requirement ..................................................................................................................... 3
Disclosure Language ........................................................................................................ 4
Signatures ........................................................................................................................ 4
Vehicle Description ......................................................................................................... 4
Distribution of Copies ...................................................................................................... 4

Salvage Vehicle Agent........................................................................................................4
5-5.1
5-5.2
5-5.3
5-5.4

Authorization ................................................................................................................... 4
Specific Dealer Classifications......................................................................................... 4
License Expiration ........................................................................................................... 4
Photo Identification .......................................................................................................... 5

5-6

Out-of-state Salvage, Scrap, or Flood Vehicles ...............................................................5

5-7

Rebuilt Salvage ...................................................................................................................5
5-7.1
5-7.2
5-7.3
5-7.4

5-8

Recertification Inspection ................................................................................................ 5
Re-titling for Road Use .................................................................................................... 6
Selling Rebuilt Salvage at Retail...................................................................................... 6
Road Use.......................................................................................................................... 6

Scrap Vehicles ....................................................................................................................6
5-8.1
5-8.2

Definition ......................................................................................................................... 6
Requirement ..................................................................................................................... 6

Revised April 2017

Table of Contents

Page 8

Page
5-9

Assembled Vehicles ............................................................................................................7
5-9.1
5-9.2
5-9.3

5-10

Replacement VIN ...............................................................................................................9
5-10.1
5-10.2
5-10.3

5-11

Requirement ..................................................................................................................... 9
VIN Sticker ...................................................................................................................... 9
Applying for an MI VIN or Replacement VIN ................................................................ 9

Flood-damaged Vehicles ....................................................................................................9
5-11.1
5-11.2
5-11.3

5-12

Definition ......................................................................................................................... 7
Requirements ................................................................................................................... 8
Applying for an Assembled Title ..................................................................................... 8

Requirement ..................................................................................................................... 9
Definition ......................................................................................................................... 9
Selling at Retail ................................................................................................................ 9

Record Keeping Requirements .........................................................................................9
5-12.1
5-12.2
5-12.3
5-12.4
5-12.5

Proof of Ownership .......................................................................................................... 9
Scrap Metal Processor Exception................................................................................... 10
Police Book Requirements ............................................................................................. 10
Major Component Parts Record ..................................................................................... 10
Scrap Vehicle Inventory, Form TR-9 ............................................................................. 11
Sample Form: Salvage Vehicle Disclosure Form ............................................................... 13
Sample Form: Major Component Parts Record .................................................................. 14
Sample Chart: Buying and Selling Distressed Vehicles ...................................................... 15

Chapter 6: Broker Requirements
6-1

Definition
6-1.1

6-2

Broker Licensing ................................................................................................................1
6-2.1
6-2.2
6-2.3
6-2.4
6-2.5
6-2.6

6-3

Prohibition ....................................................................................................................... 2
Auctions ........................................................................................................................... 2

Title Reassignments ...........................................................................................................3
6-4.1

6-5

Application ...................................................................................................................... 1
License Expiration ........................................................................................................... 1
Additional Locations in Same County ............................................................................. 1
Additional Locations in Another County ......................................................................... 2
Established Place of Business .......................................................................................... 2
Businesses in Close Proximity ......................................................................................... 2

Dealer Plates .......................................................................................................................2
6-3.1
6-3.2

6-4

Definition ......................................................................................................................... 1

Name on Title .................................................................................................................. 3

Title and Registration Application – Responsibility .......................................................3
6-5.1
6-5.2

Selling Dealer Requirements............................................................................................ 3
Application Service.......................................................................................................... 3
Revised April 2017

Table of Contents

Page 9

Page
6-5.3
6-5.4
6-5.5
6-5.6

6-6

Submitting Title and Registration Applications .............................................................4
6-6.1

6-7

Disclosure of Identity ....................................................................................................... 8

Electronic Record Requirements ......................................................................................8
6-12.1

6-13

Requirements ................................................................................................................... 6
Dates on Purchase Agreement ......................................................................................... 7
Forms ............................................................................................................................... 7

Advertising..........................................................................................................................8
6-11.1

6-12

Requirements ................................................................................................................... 6

Purchase Agreement ..........................................................................................................6
6-10.1
6-10.2
6-10.3

6-11

Police Book ...................................................................................................................... 5
Required Information ....................................................................................................... 5
Other Records .................................................................................................................. 5
Length of Retention ......................................................................................................... 6

Broker Fee Agreement.......................................................................................................6
6-9.1

6-10

Temporary Registrations .................................................................................................. 4
Issued by Broker .............................................................................................................. 4
Issued by Other Licensed Dealer ..................................................................................... 4

Record Keeping Requirements .........................................................................................5
6-8.1
6-8.2
6-8.3
6-8.4

6-9

Secretary of State Offices................................................................................................. 4

Temporary Registrations ..................................................................................................4
6-7.1
6-7.2
6-7.3

6-8

Dealer to Dealer (Wholesale) Transactions ...................................................................... 3
Other Brokered Transactions ........................................................................................... 3
New Vehicles ................................................................................................................... 3
Used Vehicles .................................................................................................................. 3

Requirements ................................................................................................................... 8

BFS-4 15-Day Temporary Registration Log ...................................................................9
6-13.1
6-13.2

Records Required ............................................................................................................. 9
Requirements ................................................................................................................... 9

Chapter 7: RD-108 – Application for Title and Registration
7-1

Reporting Retail Sales .......................................................................................................1
7-1.1
7-1.2

7-2

Authorization ................................................................................................................... 1
Applying for Title and Registration ................................................................................. 1

Submitting the RD-108 ......................................................................................................1
7-2.1
7-2.2

Payment Options .............................................................................................................. 1
Requirements ................................................................................................................... 1

Revised April 2017

Table of Contents

Page 10

Page
7-3

Checklist..............................................................................................................................2

7-4

Special Instructions for RD-108s ......................................................................................7
7-4.1
7-4.2

Body Style........................................................................................................................ 7
Fee Category or Weight ................................................................................................... 7
Table 1: Vehicle Fees Based on Value and Weight .............................................................. 8
7-4.3
Document Fees ................................................................................................................ 8
7-4.4
Commercial Plate on Passenger Vehicle .......................................................................... 8
7-4.5
Van Conversions .............................................................................................................. 9
7-4.6
Motor Homes ................................................................................................................... 9
7-4.7
Name Information on the RD-108 ................................................................................... 9
7-4.8
“Doing Business As” for a Solely Owned Business......................................................... 9
7-4.9
Address ............................................................................................................................ 9
7-4.10
Leased Vehicles ............................................................................................................... 9
7-4.11
Secured Party ................................................................................................................... 9
7-4.12
Lien Terminations .......................................................................................................... 10
7-4.13
Errors ............................................................................................................................. 10
7-4.14
Odometer Disclosure with RD-108s .............................................................................. 10
7-4.15
Special Mailer (Form TR-114)....................................................................................... 11
7-4.16
Manufacturer’s Certificate of Origin (MCO) ................................................................. 11
7-4.17
Cab and Chassis MCO – Vehicle Incomplete ................................................................ 12
7-4.18
Cab and Chassis MCO – Vehicle Complete .................................................................. 12
7-4.19
Two-stage Vehicles ........................................................................................................ 12
7-4.20
Standard Body Styles for Michigan Title and Registration ............................................ 13
Table 2: Standard Body Styles for Michigan Title and Registration ............................... 13

7-5

Registration ......................................................................................................................14
7-5.1
7-5.2
7-5.3
7-5.4
7-5.5
7-5.6
7-5.7
7-5.8
7-5.9
7-5.10
7-5.11
7-5.12
7-5.13
7-5.14
7-5.15
7-5.16
7-5.17
7-5.18

7-6

Dealer Responsibility ..................................................................................................... 14
Exceptions – Title Only Sales ........................................................................................ 14
New License Plate.......................................................................................................... 15
New License Plates – Expiration Date ........................................................................... 15
New License Plates – Prorating Months ........................................................................ 15
New License Plates – Determining Fees ........................................................................ 16
Using the Ad Valorem or Value (Base Price) Plate Fee Charts ..................................... 16
Farm Plates .................................................................................................................... 17
License Plate Transfers .................................................................................................. 19
License Plate Transfers .................................................................................................. 20
Added Fees .................................................................................................................... 20
Change of Plate Classification ....................................................................................... 20
Transfer of Individual’s Passenger Plate ........................................................................ 21
Transfer of Passenger Plate Owned by a Company or Corporation ............................... 21
Transfer of Pickup or Van Plate Owned by an Individual ............................................. 22
Transfer of Full-year Commercial Plate ......................................................................... 22
Transfer of Three-month or Six-month GVW Plate....................................................... 23
Transfer with a Replacement Plate................................................................................. 23

Tax Section .......................................................................................................................26
7-6.1
7-6.2

Taxable Dealer Services and Other Charges Appearing on RD-108 ............................. 26
Dealer Rebates and Discounts........................................................................................ 26
Revised April 2017

Table of Contents

Page 11

Page
7-6.3
7-6.4
7-6.5
7-6.6
7-6.7
7-6.8
7-6.9
7-6.10
7-6.11
7-6.12
7-6.13
7-6.14

7-7

Dealer Titles................................................................................................................... 27
Farm Trucks ................................................................................................................... 27
Federal Excise Tax on RD-108 for New Truck Purchases............................................. 27
Gifts and Prizes .............................................................................................................. 27
Government Vehicles..................................................................................................... 27
Native American Indian Tribes and Members ............................................................... 27
In-transit Permits ............................................................................................................ 27
Leased Vehicles ............................................................................................................. 27
Leased Vehicles – Tax Status and 30-Day In-transit Permits......................................... 27
Manufacturer Rebates .................................................................................................... 28
Nonprofit Organizations ................................................................................................ 28
Out-of-state Delivery...................................................................................................... 28

Repeat Offender (Registration Denial) ..........................................................................28
7-7.1
7-7.2
7-7.3
7-7.4
7-7.5
7-7.6
7-7.7
7-7.8
7-7.9
7-7.10

Repeat Offender ............................................................................................................. 28
Selling Vehicles to Repeat Offenders ............................................................................ 29
Registration Denial ........................................................................................................ 29
Registration Status Web Site.......................................................................................... 29
Plate Transfers ............................................................................................................... 29
Ignition Interlock............................................................................................................ 29
Dealer Plates .................................................................................................................. 29
Dealership Employees as Repeat Offenders................................................................... 29
Paper Plates .................................................................................................................... 29
Acquiring and Selling a Vehicle with a Paper Plate....................................................... 30
Table 3: Vehicle Registration Fees and Expiration Dates ................................................. 31
Table 4: Leased Vehicle Registration Fees and Expiration Dates ................................... 32
Table 5: County Codes .............................................................................................................. 33

Chapter 8: Sales Tax
8-1

Requirement ....................................................................................................................... 1
8-1.1
8-1.2
8-1.3

8-2

Authorization ................................................................................................................... 1
Collection of Sales Tax .................................................................................................... 1
Tax Rate ........................................................................................................................... 1

Determining Sales Tax .......................................................................................................1
8-2.1
8-2.2
8-2.3
8-2.4
8-2.5
8-2.6
8-2.7
8-2.8
8-2.9
8-2.10
8-2.11

Definition ......................................................................................................................... 1
Farmers ............................................................................................................................ 1
Leasing Companies – Titling Vehicles ............................................................................ 2
Leasing Companies – Selling Vehicles ............................................................................ 2
Leased Vehicles – Tax Status .......................................................................................... 2
Military Personnel ............................................................................................................ 3
Michigan Rehabilitation Services Clients ........................................................................ 3
Ministers .................................................................................................................3
Native American Indian Tribes ................................................................................. 3
Non-profit Organizations ................................................................................................. 3
Payment ........................................................................................................................... 4
Revised April 2017

Table of Contents

Page 12

Page
8-2.12
8-2.13
8-2.14
8-2.15
8-2.16
8-2.17
8-2.18

8-3

Rebates............................................................................................................................. 4
Relatives .......................................................................................................................... 5
Religious Groups – Church Vans, Buses, and Other Vehicles......................................... 5
Repossession by Secured Party ........................................................................................ 5
Resale Titles..................................................................................................................... 5
School Buses .................................................................................................................... 5
Vehicle Warranties........................................................................................................... 5

Exemptions .........................................................................................................................6
8-3.1
8-3.2
8-3.3
8-3.4
8-3.5
8-3.6
8-3.7
8-3.8

Ambulances, Community-Based ...................................................................................... 6
Brokers............................................................................................................................. 6
Charitable Organizations.................................................................................................. 6
Churches .......................................................................................................................... 6
Credit Unions – Federal ................................................................................................... 6
Dealers – Out-of-state Dealer Buys a Vehicle from a Michigan Dealer ........................... 6
Dealers – Resale Titles, Lease Vehicles, Rentals, Demos ................................................ 7
Demonstrator Vehicles ..................................................................................................... 7
Table 1: Demonstrators Based on Volume ............................................................................. 7
8-3.9
Foreign Diplomats ........................................................................................................... 8
8-3.10
Fire Trucks and Ambulances ........................................................................................... 8
8-3.11
Houses of Worship........................................................................................................... 8
8-3.12
Rolling Stock ................................................................................................................... 8

8-4

In-transit Permits and “Export Sales” .............................................................................9
8-4.1
8-4.2
8-4.3
8-4.4
8-4.5
8-4.6
8-4.7
8-4.8
8-4.9
8-4.10

Authorization ................................................................................................................... 9
Exporting Vehicles .......................................................................................................... 9
Instructions..................................................................................................................... 10
In-transit Permits – States with No Tax Reciprocity ...................................................... 11
In-transit Permits – “No Tax Due” States ...................................................................... 11
In-transit Permits – States with Tax Reciprocity ............................................................ 11
Out-of-state Address ...................................................................................................... 11
Proof of Insurance .......................................................................................................... 12
State Sales Tax Used for In-transits ............................................................................... 12
When Going to Canada or Another Country.................................................................. 12

Chapter 9: Foreign Salvage Vehicle Dealers
9-1

Licensing of Dealers ...........................................................................................................1
9-1.1
9-1.2
9-1.3

9-2

Record Keeping Requirements .........................................................................................1
9-2.1
9-2.2

9-3

Authorization ................................................................................................................... 1
Violations ......................................................................................................................... 1
Dealer Classification ........................................................................................................ 1

Requirements ................................................................................................................... 1
Records Inspection ........................................................................................................... 2

Salvage and Scrap Titles ...................................................................................................2
9-3.1

Salvage Titles ................................................................................................................... 2
Revised April 2017

Table of Contents

Page 13

Page
9-3.2

9-4

Buying and Selling Vehicles ..............................................................................................3
9-4.1
9-4.2

9-5

Buying Vehicles in Michigan........................................................................................... 3
Selling Vehicles in Michigan ........................................................................................... 3

Rebuilding a Michigan Salvage Vehicle...........................................................................5
9-5.1

9-6

Scrap Titles ...................................................................................................................... 2

Vehicles Returning to Michigan ...................................................................................... 5

Dismantling a Vehicle ........................................................................................................5
9-6.1
9-6.2

Surrendering the Title Document ..................................................................................... 5
Procedures........................................................................................................................ 5

Appendix A
Forms and Publications
Appendix B
Branch Offices by City

Revised April 2017



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