Dealer Manual Table Of Contents 167575 SOS 7

User Manual: 167575

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Table of Contents Page 1
Page
Revised April 2017
Table of Contents
Introduction
Important Telephone Numbers
Chapter 1: Licensing Requirements
1-1 Licensing of Dealers ...........................................................................................................1
1-1.1 Authorization ................................................................................................................... 1
1-1.2 License Expiration ........................................................................................................... 1
1-1.3 Un-renewed License ........................................................................................................ 1
1-1.4 Trailers ............................................................................................................................. 1
1-2 Established Place of Business ............................................................................................1
1-2.1 Authorization ................................................................................................................... 1
1-2.2a Established Place of Business Requirements for New and Used Vehicle Dealers ........... 2
1-2.2b Established Place of Business Requirements for Wholesaler Vehicle Dealers ............... 3
1-2.3 Requirements for All Vehicle Dealers ............................................................................. 3
1-2.4 Two Dealers at One Location .......................................................................................... 3
1-2.4 Additional Locations in Same County ............................................................................. 4
1-2.5 Another County ................................................................................................................ 4
1-3 Workers’ Compensation Insurance .................................................................................4
1-3.1 Requirements ................................................................................................................... 4
1-4 Business Hours ...................................................................................................................4
1-4.1 Requirement ..................................................................................................................... 4
1-4.2 Business Hours ................................................................................................................ 4
1-4.3 Change in Business Hours ............................................................................................... 5
1-4.4 Sunday Sales .................................................................................................................... 5
1-5 Surety Bond ........................................................................................................................5
1-5.1 Requirement ..................................................................................................................... 5
1-5.2 License Termination ........................................................................................................ 5
1-5.3 Authority .......................................................................................................................... 5
1-6 Fleet Insurance ...................................................................................................................5
1-6.1 Requirements ................................................................................................................... 5
1-7 Dealership Changes ...........................................................................................................6
1-7.1 Requirements ................................................................................................................... 6
1-7.2 Application ...................................................................................................................... 6
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Revised April 2017
1-8 Change of Address or Change of Business Name ...........................................................6
1-8.1 Postal Changes ................................................................................................................. 6
1-8.2 Moves within Same County ............................................................................................. 6
1-8.3 Moves from One County to Another ................................................................................ 6
1-8.4 Change of Name .............................................................................................................. 6
1-9 Change of Ownership ........................................................................................................7
1-9.1 Requirement ..................................................................................................................... 7
1-9.2 Corporations..................................................................................................................... 7
1-9.3 Partnerships ...................................................................................................................... 7
1-9.4 Limited Liability Companies ........................................................................................... 7
1-9.5 Individual Ownership....................................................................................................... 8
1-10 Additional Sales Locations ................................................................................................8
1-10.1 Supplemental Locations ................................................................................................... 8
1-10.2 Temporary Sales Locations .............................................................................................. 8
1-10.3 Temporary Sales Locations – RV Dealers ....................................................................... 8
1-11 Going Out of Business .......................................................................................................9
1-11.1 Requirements ................................................................................................................... 9
1-11.2 Vehicles in Inventory ....................................................................................................... 9
1-12 Designated Branches ..........................................................................................................9
1-12.1 Dealer Selection for Designated Branches ....................................................................... 9
1-12.2 EFT ................................................................................................................................ 10
1-13 Dealer Classifications.......................................................................................................10
1-13.1 Requirements ................................................................................................................. 10
1-13.2 Class A (New Vehicle Dealer) ....................................................................................... 10
1-13.3 Class B (Used Vehicle Dealer) ...................................................................................... 11
1-13.4 Class C (Used Vehicle Parts Dealer) .............................................................................. 11
1-13.5 Class D (Broker) ............................................................................................................ 12
1-13.6 Class E (Distressed Vehicle Transporter) ...................................................................... 12
1-13.7 Class F (Vehicle Scrap Metal Processor) ....................................................................... 12
1-13.8 Class G (Vehicle Salvage Pool) ..................................................................................... 12
1-13.9 Class H (Foreign Salvage Vehicle Dealer) ..................................................................... 13
1-13.10 Class R (Automotive Recycler) ...................................................................................... 13
1-13.11 Salvage Vehicle Agent License...................................................................................... 14
1-13.12 Class W (Wholesaler Vehicle License) .......................................................................... 15
1-14 Dealer Plates .....................................................................................................................15
1-14.1 Authorization ................................................................................................................. 15
1-14.2 Proper Use ..................................................................................................................... 15
1-14.3 Improper Use ................................................................................................................. 16
1-14.4 Sanctions ........................................................................................................................ 16
1-14.5 Dealer Plate Frames ....................................................................................................... 17
1-14.6 Loss of Plate ................................................................................................................... 17
1-14.8 Tracking Dealer Plates ................................................................................................... 17
1-14.8 Destroying Expired Dealer Plates .................................................................................. 17
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Revised April 2017
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 Records Requirements ..................................................................................................... 1
2-1.2 Record Retention ............................................................................................................. 1
2-1.3 Electronic Records ........................................................................................................... 1
2-1.4 Class A Dealers ................................................................................................................ 1
2-1.5 Class B Dealers ................................................................................................................ 2
2-1.6 Class C and Class R Dealers ............................................................................................ 3
2-1.7 Class D Brokers ............................................................................................................... 3
2-1.8 Class E Dealers ................................................................................................................ 3
2-1.9 Class F Dealers ................................................................................................................ 3
2-1.10 Class G Dealers ................................................................................................................ 4
2-1.11 Class H Dealers ................................................................................................................ 4
2-1.12 Class W Dealers ............................................................................................................... 4
2-2 Police Book .........................................................................................................................5
2-2.1 Description ....................................................................................................................... 5
2-2.2 Requirements ................................................................................................................... 5
2-2.3 Distressed (Salvage/Scrap-titled) Vehicles – Additional Requirements ........................... 6
2-2.4 Dismantled Vehicle Requirements ................................................................................... 6
2-3 Washout System.................................................................................................................6
2-3.1 Restrictions ...................................................................................................................... 6
2-3.2 Use ................................................................................................................................... 7
2-4 Supplemental Location Records .......................................................................................7
2-4.1 Records Required ............................................................................................................. 7
2-4.2 Records Retention Exceptions ......................................................................................... 7
2-5 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
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Revised April 2017
3-1 Titles ....................................................................................................................................1
3-1.1 Authority .......................................................................................................................... 1
3-1.2 Requirement ..................................................................................................................... 1
3-1.3 Title Possession Exceptions ............................................................................................. 1
3-1.4 Proof of Ownership .......................................................................................................... 3
3-1.5 Proper Title Assignments ................................................................................................. 3
3-2 Wholesale Transactions .....................................................................................................4
3-2.1 Instructions....................................................................................................................... 4
3-2.2 Resale Titles ..................................................................................................................... 4
3-3 Retail Transactions ............................................................................................................4
3-3.1 Authority .......................................................................................................................... 4
3-3.2 Requirements ................................................................................................................... 4
3-3.3 Transfer of Interest ........................................................................................................... 4
3-3.4 Assigning Security Interest .............................................................................................. 5
3-4 Off-Lease Purchases ..........................................................................................................6
3-4.1 Authority .......................................................................................................................... 6
3-4.2 Requirements ................................................................................................................... 6
3-4.3 Conducting an Off-Lease Vehicle Transaction ................................................................ 6
3-5 Title Assignments ...............................................................................................................7
3-5.1 By Seller .......................................................................................................................... 7
3-5.2 Errors in Title Reassignments .......................................................................................... 8
3-6 Odometer Mileage Disclosure Statements .......................................................................8
3-6.1 Requirements ................................................................................................................... 8
3-7 Disclosure Statements ........................................................................................................8
3-7.1 Disclosure Requirements – Rebuilt Salvage Vehicle ....................................................... 8
3-7.2 Disclosure Requirements – New Vehicle Damage ........................................................... 8
3-7.3 Disclosure Requirements – Driver Education Vehicles ................................................... 9
3-8 Appointment of Agent Forms (Power of Attorney) ........................................................9
3-8.1 Authority .......................................................................................................................... 9
3-8.2 Prohibition ....................................................................................................................... 9
3-8.3 Use ................................................................................................................................... 9
3-9 Temporary Registrations ................................................................................................10
3-9.1 Availability .................................................................................................................... 10
3-9.2 Authorized Use .............................................................................................................. 10
3-9.3 Unauthorized Use .......................................................................................................... 11
Table 1: Types of Vehicle Registrations ................................................................................. 12
3-10 30-Day In-transit Registration (Retail Transactions Only) .........................................13
3-10.1 In-Transit Registration Authority ................................................................................... 13
3-10.2 Export Sales ................................................................................................................... 13
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Revised April 2017
3-10.3 Proof of Insurance .......................................................................................................... 13
3-10.4 Out-of-state Address ...................................................................................................... 13
3-10.5 Instructions..................................................................................................................... 13
3-10.6 Lost Ownership Documents ........................................................................................... 14
3-11 Resale Titles ......................................................................................................................14
3-11.1 Requirements ................................................................................................................. 14
3-11.2 Prohibition ..................................................................................................................... 14
3-11.3 Application .................................................................................................................... 15
3-11.4 Legend ........................................................................................................................... 15
3-12 Lost Titles .........................................................................................................................15
3-12.1 Authority ........................................................................................................................ 15
3-12.2 Surety Bond ................................................................................................................... 15
3-12.3 Self-certification of Ownership ...................................................................................... 16
3-12.4 Out-of-state Dealers ....................................................................................................... 16
3-13 Trade-in Vehicle ...............................................................................................................16
3-14 Rescinded (Cancelled) Deals ...........................................................................................17
3-14.1 Instructions..................................................................................................................... 17
3-14.2 Sales Tax Credit ............................................................................................................. 17
3-14.3 Registration Fee Refund ................................................................................................ 18
3-15 Expeditious Title Service .................................................................................................18
3-16 Instant Titles (While-You-Wait Service) .......................................................................19
3-16.1 Locations ........................................................................................................................ 19
3-16.2 Eligible Transactions ..................................................................................................... 19
3-16.3 Instant Title Checklist .................................................................................................... 19
3-17 Driver Education Vehicles ..............................................................................................19
3-17.1 Requirements ................................................................................................................. 19
3-17.2 Sales Tax ........................................................................................................................ 20
3-17.3 License Plates ................................................................................................................ 20
3-18 Selling a Motor Vehicle to a Minor ................................................................................20
3-18.1 Authority ........................................................................................................................ 20
3-18.2 Instructions..................................................................................................................... 20
3-19 Acquiring a Vehicle – Previous Owner Deceased .........................................................20
3-20 Wrong Title or MCO with an RD-108 ...........................................................................21
3-20.1 Instructions..................................................................................................................... 21
3-20.2 Used Vehicle Titled in Error .......................................................................................... 21
3-20.3 New Vehicle Titled in Error ........................................................................................... 22
3-20.4 Record Deletion ............................................................................................................. 22
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Revised April 2017
3-21 Demonstrator Title – Class A Dealers Only...................................................................22
3-21.1 Authority ........................................................................................................................ 22
3-21.2 Titling a Demonstrator Vehicle ...................................................................................... 23
3-22 Courtesy Deliveries ..........................................................................................................23
3-22.1 Authority ........................................................................................................................ 23
3-22.2 Requirements ................................................................................................................. 23
3-22.3 Instructions..................................................................................................................... 23
3-23 Canadian or Other Imported Vehicles ..........................................................................24
3-23.1 Authority ........................................................................................................................ 24
3-23.2 Requirement ................................................................................................................... 24
Chapter 4: Odometer Mileage Disclosure Requirements
4-1 Disclosure ............................................................................................................................1
4-1.1 Authorization ................................................................................................................... 1
4-1.2 Record Retention ............................................................................................................. 1
4-1.3 Record Accuracy .............................................................................................................. 1
4-2 Exempt Vehicles .................................................................................................................2
4-3 Conforming vs. Nonconforming Titles .............................................................................2
4-3.1 Conforming Titles ............................................................................................................ 2
4-3.2 Nonconforming Titles ...................................................................................................... 2
4-4 Odometer Mileage Disclosure Statements .......................................................................3
4-4.1 Requirements ................................................................................................................... 3
4-4.2 Retail Transactions ........................................................................................................... 3
4-4.3 Multiple Buyers or Sellers ............................................................................................... 3
4-4.4 Wholesale Transactions ................................................................................................... 3
4-4.5 Inventory Lender Transactions ......................................................................................... 3
4-4.6 Out-of-state Titles ............................................................................................................ 3
4-5 Certificates of Origin (MCO/MSO) .................................................................................4
4-5.1 Requirement ..................................................................................................................... 4
4-5.2 Vehicles Never Titled ...................................................................................................... 4
4-6 Replacing or Repairing an Odometer ..............................................................................4
4-6.1 Actual Odometer Mileage Disclosure Reading Known ................................................... 4
4-6.2 Unable to Register Same Mileage .................................................................................... 4
4-7 Door Frame Stickers ..........................................................................................................4
4-8 Vehicles Without or With Broken Odometers ................................................................5
4-8.1 Requirements ................................................................................................................... 5
4-8.2 Completing Odometer Mileage Disclosure Statement ..................................................... 5
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Revised April 2017
4-9 Kilometers vs. Miles ...........................................................................................................5
4-9.1 Instructions....................................................................................................................... 5
4-9.2 Applying for Michigan Resale Title ................................................................................. 5
Chapter 5: Distressed Vehicles
5-1 Salvage Titles and Scrap Titles .........................................................................................1
5-1.1 Authorization ................................................................................................................... 1
5-1.2 Distressed Vehicles .......................................................................................................... 1
5-2 Late Model Vehicles ...........................................................................................................2
5-3 Salvage Vehicles .................................................................................................................2
5-3.1 Definition ......................................................................................................................... 2
5-3.2 Requirement ..................................................................................................................... 2
5-3.3 Applying for Salvage Title ............................................................................................... 2
5-3.4 Major Component Parts ................................................................................................... 2
5-3.5 Selling at Wholesale ........................................................................................................ 3
5-3.6 Selling to Non-dealers ...................................................................................................... 3
5-4 Salvage Disclosure ..............................................................................................................3
5-4.1 Requirement ..................................................................................................................... 3
5-4.2 Disclosure Language ........................................................................................................ 4
5-4.3 Signatures ........................................................................................................................ 4
5-4.4 Vehicle Description ......................................................................................................... 4
5-4.5 Distribution of Copies ...................................................................................................... 4
5-5 Salvage Vehicle Agent ........................................................................................................4
5-5.1 Authorization ................................................................................................................... 4
5-5.2 Specific Dealer Classifications ......................................................................................... 4
5-5.3 License Expiration ........................................................................................................... 4
5-5.4 Photo Identification .......................................................................................................... 5
5-6 Out-of-state Salvage, Scrap, or Flood Vehicles ...............................................................5
5-7 Rebuilt Salvage ...................................................................................................................5
5-7.1 Recertification Inspection ................................................................................................ 5
5-7.2 Re-titling for Road Use .................................................................................................... 6
5-7.3 Selling Rebuilt Salvage at Retail ...................................................................................... 6
5-7.4 Road Use .......................................................................................................................... 6
5-8 Scrap Vehicles ....................................................................................................................6
5-8.1 Definition ......................................................................................................................... 6
5-8.2 Requirement ..................................................................................................................... 6
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Revised April 2017
5-9 Assembled Vehicles ............................................................................................................7
5-9.1 Definition ......................................................................................................................... 7
5-9.2 Requirements ................................................................................................................... 8
5-9.3 Applying for an Assembled Title ..................................................................................... 8
5-10 Replacement VIN ...............................................................................................................9
5-10.1 Requirement ..................................................................................................................... 9
5-10.2 VIN Sticker ...................................................................................................................... 9
5-10.3 Applying for an MI VIN or Replacement VIN ................................................................ 9
5-11 Flood-damaged Vehicles ....................................................................................................9
5-11.1 Requirement ..................................................................................................................... 9
5-11.2 Definition ......................................................................................................................... 9
5-11.3 Selling at Retail ................................................................................................................ 9
5-12 Record Keeping Requirements .........................................................................................9
5-12.1 Proof of Ownership .......................................................................................................... 9
5-12.2 Scrap Metal Processor Exception ................................................................................... 10
5-12.3 Police Book Requirements ............................................................................................. 10
5-12.4 Major Component Parts Record ..................................................................................... 10
5-12.5 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 Definition ......................................................................................................................... 1
6-2 Broker Licensing ................................................................................................................1
6-2.1 Application ...................................................................................................................... 1
6-2.2 License Expiration ........................................................................................................... 1
6-2.3 Additional Locations in Same County ............................................................................. 1
6-2.4 Additional Locations in Another County ......................................................................... 2
6-2.5 Established Place of Business .......................................................................................... 2
6-2.6 Businesses in Close Proximity ......................................................................................... 2
6-3 Dealer Plates .......................................................................................................................2
6-3.1 Prohibition ....................................................................................................................... 2
6-3.2 Auctions ........................................................................................................................... 2
6-4 Title Reassignments ...........................................................................................................3
6-4.1 Name on Title .................................................................................................................. 3
6-5 Title and Registration Application – Responsibility .......................................................3
6-5.1 Selling Dealer Requirements............................................................................................ 3
6-5.2 Application Service .......................................................................................................... 3
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6-5.3 Dealer to Dealer (Wholesale) Transactions ...................................................................... 3
6-5.4 Other Brokered Transactions ........................................................................................... 3
6-5.5 New Vehicles ................................................................................................................... 3
6-5.6 Used Vehicles .................................................................................................................. 3
6-6 Submitting Title and Registration Applications .............................................................4
6-6.1 Secretary of State Offices ................................................................................................. 4
6-7 Temporary Registrations ..................................................................................................4
6-7.1 Temporary Registrations .................................................................................................. 4
6-7.2 Issued by Broker .............................................................................................................. 4
6-7.3 Issued by Other Licensed Dealer ..................................................................................... 4
6-8 Record Keeping Requirements .........................................................................................5
6-8.1 Police Book ...................................................................................................................... 5
6-8.2 Required Information ....................................................................................................... 5
6-8.3 Other Records .................................................................................................................. 5
6-8.4 Length of Retention ......................................................................................................... 6
6-9 Broker Fee Agreement .......................................................................................................6
6-9.1 Requirements ................................................................................................................... 6
6-10 Purchase Agreement ..........................................................................................................6
6-10.1 Requirements ................................................................................................................... 6
6-10.2 Dates on Purchase Agreement ......................................................................................... 7
6-10.3 Forms ............................................................................................................................... 7
6-11 Advertising..........................................................................................................................8
6-11.1 Disclosure of Identity ....................................................................................................... 8
6-12 Electronic Record Requirements ......................................................................................8
6-12.1 Requirements ................................................................................................................... 8
6-13 BFS-4 15-Day Temporary Registration Log ...................................................................9
6-13.1 Records Required ............................................................................................................. 9
6-13.2 Requirements ................................................................................................................... 9
Chapter 7: RD-108 – Application for Title and Registration
7-1 Reporting Retail Sales .......................................................................................................1
7-1.1 Authorization ................................................................................................................... 1
7-1.2 Applying for Title and Registration ................................................................................. 1
7-2 Submitting the RD-108 ......................................................................................................1
7-2.1 Payment Options .............................................................................................................. 1
7-2.2 Requirements ................................................................................................................... 1
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Revised April 2017
7-3 Checklist..............................................................................................................................2
7-4 Special Instructions for RD-108s ......................................................................................7
7-4.1 Body Style ........................................................................................................................ 7
7-4.2 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 Dealer Responsibility ..................................................................................................... 14
7-5.2 Exceptions – Title Only Sales ........................................................................................ 14
7-5.3 New License Plate .......................................................................................................... 15
7-5.4 New License Plates – Expiration Date ........................................................................... 15
7-5.5 New License Plates – Prorating Months ........................................................................ 15
7-5.6 New License Plates – Determining Fees ........................................................................ 16
7-5.7 Using the Ad Valorem or Value (Base Price) Plate Fee Charts ..................................... 16
7-5.8 Farm Plates .................................................................................................................... 17
7-5.9 License Plate Transfers .................................................................................................. 19
7-5.10 License Plate Transfers .................................................................................................. 20
7-5.11 Added Fees .................................................................................................................... 20
7-5.12 Change of Plate Classification ....................................................................................... 20
7-5.13 Transfer of Individual’s Passenger Plate ........................................................................ 21
7-5.14 Transfer of Passenger Plate Owned by a Company or Corporation ............................... 21
7-5.15 Transfer of Pickup or Van Plate Owned by an Individual ............................................. 22
7-5.16 Transfer of Full-year Commercial Plate ......................................................................... 22
7-5.17 Transfer of Three-month or Six-month GVW Plate ....................................................... 23
7-5.18 Transfer with a Replacement Plate ................................................................................. 23
7-6 Tax Section .......................................................................................................................26
7-6.1 Taxable Dealer Services and Other Charges Appearing on RD-108 ............................. 26
7-6.2 Dealer Rebates and Discounts ........................................................................................ 26
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7-6.3 Dealer Titles ................................................................................................................... 27
7-6.4 Farm Trucks ................................................................................................................... 27
7-6.5 Federal Excise Tax on RD-108 for New Truck Purchases ............................................. 27
7-6.6 Gifts and Prizes .............................................................................................................. 27
7-6.7 Government Vehicles ..................................................................................................... 27
7-6.8 Native American Indian Tribes and Members ............................................................... 27
7-6.9 In-transit Permits ............................................................................................................ 27
7-6.10 Leased Vehicles ............................................................................................................. 27
7-6.11 Leased Vehicles – Tax Status and 30-Day In-transit Permits......................................... 27
7-6.12 Manufacturer Rebates .................................................................................................... 28
7-6.13 Nonprofit Organizations ................................................................................................ 28
7-6.14 Out-of-state Delivery...................................................................................................... 28
7-7 Repeat Offender (Registration Denial) ..........................................................................28
7-7.1 Repeat Offender ............................................................................................................. 28
7-7.2 Selling Vehicles to Repeat Offenders ............................................................................ 29
7-7.3 Registration Denial ........................................................................................................ 29
7-7.4 Registration Status Web Site .......................................................................................... 29
7-7.5 Plate Transfers ............................................................................................................... 29
7-7.6 Ignition Interlock............................................................................................................ 29
7-7.7 Dealer Plates .................................................................................................................. 29
7-7.8 Dealership Employees as Repeat Offenders ................................................................... 29
7-7.9 Paper Plates .................................................................................................................... 29
7-7.10 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 Authorization ................................................................................................................... 1
8-1.2 Collection of Sales Tax .................................................................................................... 1
8-1.3 Tax Rate ........................................................................................................................... 1
8-2 Determining Sales Tax .......................................................................................................1
8-2.1 Definition ......................................................................................................................... 1
8-2.2 Farmers ............................................................................................................................ 1
8-2.3 Leasing Companies – Titling Vehicles ............................................................................ 2
8-2.4 Leasing Companies – Selling Vehicles ............................................................................ 2
8-2.5 Leased Vehicles – Tax Status .......................................................................................... 2
8-2.6 Military Personnel ............................................................................................................ 3
8-2.7 Michigan Rehabilitation Services Clients ........................................................................ 3
8-2.8 Ministers .................................................................................................................3
8-2.9 Native American Indian Tribes ................................................................................. 3
8-2.10 Non-profit Organizations ................................................................................................. 3
8-2.11 Payment ........................................................................................................................... 4
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8-2.12 Rebates ............................................................................................................................. 4
8-2.13 Relatives .......................................................................................................................... 5
8-2.14 Religious Groups – Church Vans, Buses, and Other Vehicles ......................................... 5
8-2.15 Repossession by Secured Party ........................................................................................ 5
8-2.16 Resale Titles ..................................................................................................................... 5
8-2.17 School Buses .................................................................................................................... 5
8-2.18 Vehicle Warranties ........................................................................................................... 5
8-3 Exemptions .........................................................................................................................6
8-3.1 Ambulances, Community-Based ...................................................................................... 6
8-3.2 Brokers ............................................................................................................................. 6
8-3.3 Charitable Organizations .................................................................................................. 6
8-3.4 Churches .......................................................................................................................... 6
8-3.5 Credit Unions – Federal ................................................................................................... 6
8-3.6 Dealers – Out-of-state Dealer Buys a Vehicle from a Michigan Dealer ........................... 6
8-3.7 Dealers – Resale Titles, Lease Vehicles, Rentals, Demos ................................................ 7
8-3.8 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 Authorization ................................................................................................................... 9
8-4.2 Exporting Vehicles .......................................................................................................... 9
8-4.3 Instructions..................................................................................................................... 10
8-4.4 In-transit Permits – States with No Tax Reciprocity ...................................................... 11
8-4.5 In-transit Permits – “No Tax Due” States ...................................................................... 11
8-4.6 In-transit Permits – States with Tax Reciprocity ............................................................ 11
8-4.7 Out-of-state Address ...................................................................................................... 11
8-4.8 Proof of Insurance .......................................................................................................... 12
8-4.9 State Sales Tax Used for In-transits ............................................................................... 12
8-4.10 When Going to Canada or Another Country .................................................................. 12
Chapter 9: Foreign Salvage Vehicle Dealers
9-1 Licensing of Dealers ...........................................................................................................1
9-1.1 Authorization ................................................................................................................... 1
9-1.2 Violations ......................................................................................................................... 1
9-1.3 Dealer Classification ........................................................................................................ 1
9-2 Record Keeping Requirements .........................................................................................1
9-2.1 Requirements ................................................................................................................... 1
9-2.2 Records Inspection ........................................................................................................... 2
9-3 Salvage and Scrap Titles ...................................................................................................2
9-3.1 Salvage Titles ................................................................................................................... 2
Table of Contents Page 13
Page
Revised April 2017
9-3.2 Scrap Titles ...................................................................................................................... 2
9-4 Buying and Selling Vehicles ..............................................................................................3
9-4.1 Buying Vehicles in Michigan........................................................................................... 3
9-4.2 Selling Vehicles in Michigan ........................................................................................... 3
9-5 Rebuilding a Michigan Salvage Vehicle ...........................................................................5
9-5.1 Vehicles Returning to Michigan ...................................................................................... 5
9-6 Dismantling a Vehicle ........................................................................................................5
9-6.1 Surrendering the Title Document ..................................................................................... 5
9-6.2 Procedures ........................................................................................................................ 5
Appendix A
Forms and Publications
Appendix B
Branch Offices by City

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