Current through Register Vol. 42, No. 11, August 30, 2024
(1)
Registration During Designated Renewal Period.
(a) All motor vehicles, other than those
registered pursuant to the International Registration Plan provided in §
32-6-56,
Code of Ala. 1975, shall be renewed in the designated
renewal month as provided in §
32-6-61,
Code of Ala. 1975.
(b) If the last day of the designated renewal
month falls on a Saturday, Sunday, holiday, or any other day that the licensing
office is closed, the motor vehicle registrant may register his or her vehicle
the next business day without penalty and interest charges.
(c) Alabama license issuing officials may
send renewal notices to persons previously registering their motor vehicles in
that county. The failure of the license issuing official to offer this service,
or the failure of the renewal notice to be received by the motor vehicle owner
does not negate the penalty or interest charges levied under Alabama law for a
delinquent registration.
(2)
Twenty-day (20-day)
Registration Grace Period from Date of Acquisition or Purchase.
(a) Registrants have 20 days from date of
purchase or acquisition to register a newly acquired motor vehicle without
penalty or interest. In determining the 20-day penalty or interest free grace
period, the day the vehicle was actually acquired is not included in the
calculations. Thus, license issuing officials, in calculating the 20-day grace
period must begin counting using the day following the purchase or acquisition
date.
(b) Determining the
Acquisition Date of a Motor Vehicle.
1. It is
the responsibility of the person acquiring a motor vehicle to prove to the
satisfaction of the license issuing official the date the motor vehicle was
acquired.
2. When the date of
acquisition is different from the date of purchase, and the registrant can
provide documentation to the license issuing official that the newly acquired
motor vehicle was not received by the owner until a date subsequent to the
purchase date, penalty and interest will not be charged if the motor vehicle is
registered within the 20-day grace period of the acquisition date. (Example:
Someone acquiring a new truck from a dealership, as part of the purchase
contract, requires the dealer to paint the truck and add special equipment, and
such changes result in the new owner not taking possession of the truck until
several days after the date shown on the title application as the purchase
date.)
3. When the registrant can
provide documents to the license issuing official that prove the motor vehicle
was delivered by the seller and not subsequently operated on the public
highways prior to the motor vehicle being registered, then no late registration
penalty or interest will be charged. (Example: a purchaser acquires a motor
vehicle, and has it delivered by the selling dealership to their location, and
it is stored until the purchaser needs to place the motor vehicle into
service.)
4. If a person leases a
motor vehicle or leases a motor vehicle with the option to purchase, the lease
date is the date of acquisition, and the registration fee liability attaches on
the lease date, unless the lessor or lessee can provide evidence that the
lessee did not receive control and possession of the motor vehicle on the lease
date.
5. In calculating the 20-day
grace period, if the 20th day falls on a Saturday, Sunday, holiday, or any day
that the licensing office is closed, the motor vehicle owner may register his
or her vehicle the next business day without penalty and interest
charges.
6. Registrants issued a
current and valid Alabama temporary license plate before the 20-day grace
period expires, are not to be charged penalty and interest if the motor vehicle
is registered while the temporary plate remains valid as long as the temporary
plate was acquired prior to the delinquent period.
7. Registrants issued a current and valid
temporary license plate in another jurisdiction are not charged penalty and
interest while the temporary plate is valid, even if the 20th day occurs before
the temporary plate expires.
8. If
an Alabama resident acquires a motor vehicle in another state, and operates the
motor vehicle in that jurisdiction, or outside the State of Alabama, for days,
weeks, or months, perhaps using temporary plates from the jurisdiction where
motor vehicle was purchased, the 20-day grace period begins on the day
following the date the motor vehicle enters the State of Alabama, as the
registration fee liability attaches upon motor vehicle operation upon Alabama
public highways.
9. Under
provisions of the Alabama Certificate of Title and Antitheft Act, a salvage
motor vehicle may be rebuilt and operated on the public highways after it has
been inspected by the department and a rebuilt title has been issued. The
registrant has a 20-day grace period from the date shown on the subsequent
application for certificate of title to register the rebuilt motor vehicle and
not incur penalty or interest charges, unless the registration fee liability
does not attach. (Example: The rebuilt motor vehicle is acquired by and
immediately placed into dealer inventory.)
10. Motor Vehicles used exclusively on
private property and not on the "public highway" as that term is defined in
§
40-12-240,
Code of Ala. 1975, are not required to be registered.
However, in the event the owner needs to operate the motor vehicle on the
public highways, the owner must first register the motor vehicle. There is no
20-day grace period in such cases. Penalty and interest are due at registration
when the motor vehicle is operated on the public highways without the
registration first having been obtained. The penalty and interest would be
calculated from the date the motor vehicle was purchased or date of
acquisition. Motor vehicle operation on the public highways does not include
movement directly from one side of a public highway to the opposite side of the
highway (for example, to move the motor vehicle from plant sites directly
across the highway from each other).
11. Motor Vehicles where the manufacture
elects to sell or lease with the option to purchase a motor vehicle to the
employee of the manufacturer or direct to a retail customer, the liability for
registration fees would begin at the date of purchase or acquisition, with the
purchaser having the 20-day grace period to acquire registration.
(3)
Transfer of a License Plate to Newly Acquired Vehicle within
Twenty-day (20-day) Registration Grace Period. An owner of a newly
acquired motor vehicle may register the motor vehicle within the 20-day grace
period by transferring the current and valid registration from a motor vehicle
if the owner can document to the satisfaction of the license issuing official
that the previously owned motor vehicle was sold or otherwise disposed of prior
to the acquisition of the new motor vehicle or if the owner can document to the
satisfaction of the license issuing official that the previously registered
motor vehicle was junked or destroyed thereby rendering it inoperable, even if
he or she continues to own the vehicle. Otherwise, pursuant to the provisions
of §
40-12-260,
Code of Ala. 1975, the registration cannot be
transferred to the newly acquired motor vehicle. Instead, the owner of the
newly acquired motor vehicle must obtain a new registration within the 20-day
grace period registration.
(4)
Ownership Documentation During Twenty-day (20-day) Registration
Grace Period.
(a) During the
20-day grace period, a newly acquired motor vehicle may be operated without a
current and valid Alabama license plate being displayed on the vehicle,
provided that the owner has not secured a new registration for the vehicle.
However, in accordance with the provisions of §
40-12-260,
Code of Ala. 1975, during the 20-day grace period from
purchase date or acquisition date, the operator of the newly acquired motor
vehicle must retain with the vehicle the ownership document(s) (i.e. temporary
tag, Alabama application for certificate of title, or bill of sale) authorized
in these law subsections for possible presentation to law
enforcement.
(b) If the newly
acquired motor vehicle is a truck or truck tractor with a gross weight
exceeding 12,000 pounds, or is a commercial bus, while the registration may be
secured without penalty during the 20-day grace period following the date of
purchase or acquisition, operation of the truck, truck tractor or commercial
bus on the public highways, without a current and valid license plate may
subject the operator to law enforcement sanctions; particularly, if the motor
vehicle is operated outside the State of Alabama.
(5)
Registration of a Motor
Vehicle Removed from Inventory and Used as a Rental. If a licensed
motor vehicle dealer removes a motor vehicle from their motor vehicle sales
inventory to be used as a daily rental motor vehicle, the motor vehicle dealer
must certify to the license issuing official the date that the vehicle was
placed into the rental inventory, or the date that the motor vehicle was first
used as a rental motor vehicle, whichever date is first, in order for the
issuing official to determine if delinquency penalty and interest charges
accrue. This same requirement is applicable if the vehicle is removed from
dealer inventory for use as a service vehicle, etc.
(6)
Penalty and Interest for
Delinquent Registration.
(a) The
penalties associated with the late registration of a motor vehicle, other than
a trailer, are codified in §§
32-6-65 and
40-12-260,
Code of Ala. 1975.
(b) Penalty for Failure to Timely Register or
Renew a Motor Vehicle.
1.
§
32-6-65,
Code of Ala. 1975, provides for a $15 penalty for
anyone failing to renew his or her motor vehicle registration during his or her
designated renewal month. A motor vehicle owner that has a current and valid
Alabama license plate that may be transferred to a newly acquired vehicle, and
fails to do so within the 20-day grace period, and also fails to timely renew
his or her motor vehicle registration in the designated renewal month, will be
subject to both the $15 transfer penalty and the $15 penalty authorized under
§
32-6-65,
Code of Ala. 1975, for failure to timely
renew.
2.
§
32-6-65,
Code of Ala. 1975, provides for a $15 penalty for "the
failure to register the motor vehicle within 20 calendar days of the date of
purchase or acquisition" applies when the motor vehicle owner has no current
and valid Alabama license plate that can be transferred to the newly acquired
vehicle. A motor vehicle owner that has a current and valid Alabama license
plate which was removed from a motor vehicle that was sold, junked or
destroyed, and fails to transfer said license plate to the newly acquired motor
vehicle within the 20-day grace period of the purchase or acquisition, will be
subject to only the transfer penalty imposed under §
40-12-260,
Code of Ala. 1975.
(c) Penalty for Late Registration of
Trailers. The penalty provisions for trailers are codified in §
40-12-10,
Code of Ala. 1975. The penalty section provides for a
late registration penalty of 15% of the amount of the license but not less than
$1.50.
(d) Pursuant to §
40-12-10,
Code of Ala. 1975, a license issuing official is
required to collect accrued interest when issuing a delinquent motor vehicle
registration. Interest due for the late registration of a motor vehicle is
codified in §
40-1-44,
Code of Ala. 1975. The interest is computed based on
the underpayment rate established by the Secretary of the Treasury under the
authority of
26 U.S.C.
§6621 and is published quarterly by the
department.
(7)
Penalty for Incorrect or Improper License Plate Class
Citations.
(a)
§
40-12-249,
Code of Ala. 1975, provides for a 25% penalty on the
difference between fees paid and fees due when someone is cited with operating
a motor vehicle with the incorrect class of license plate. This penalty refers
to situations where the registrant's motor vehicle is improperly registered
with a lower weight license plate category than required, or when the
registrant is operating a motor vehicle with one class license plate when
another class license plate is required.
(b) The operator of a motor vehicle being
operated during the renewal month(s), after the previous registration expires
with an improper class license plate, can be cited for improper license plate
for the full previous registration year with credit for the license previously
obtained, with the 25% penalty applicable to the net amount due. Additionally,
the registrant of the motor vehicle would owe registration fees for the proper
classification of license plate for the current registration period.
(c) A person that acquires a motor vehicle in
a month other than their designated renewal month and registers it with an
improper classification license plate will be subject to the 25% penalty. The
25% penalty will be based on the difference between the prorated fees for the
license plate classification that should have been obtained beginning for the
month the motor vehicle was acquired, and the prorated fees for the license
plate classification that was obtained.
(d)
§
40-12-10,
Code of Ala. 1975, authorizes the collection of a
citation fee when a "Notice to Obtain License Plate" is issued, and requires
that the issuing official collect the citation fee "before issuing any
license."
(e) The term "citation"
as used in §
40-12-249,
Code of Ala. 1975, refers to the "Notice to Obtain
License Plate" as authorized in §
40-12-10,
Code of Ala. 1975, and does not refer to Uniform
Traffic Tickets.
(8)
Exemptions from Penalty and Interest.
(a) Generally, a motor vehicle that is exempt
from registration fees or ad valorem taxes is not automatically exempt from
penalty and interest charges. However, penalty provisions found in §§
32-6-65 and
40-12-260,
Code of Ala. 1975, and the accrued interest are not
applicable when the following registrations are issued:
1. A motor vehicle is owned by persons exempt
from "charges of any nature whatsoever", such as those entities exempt under
§
40-9-12,
Code of Ala. 1975.
2. State, county, municipal government,
Public Utility Department vehicles. Vehicles owned by volunteer fire department
license plates as authorized under §
40-12-250,
Code of Ala. 1975.
3. U.S. Government Loaned Vehicles.
4. Dealer, motorcycle dealer, manufacturer
and dealer transit license plates (see §
40-12-264,
Code of Ala. 1975).
5. Temporary license plates.
(b) If the last day of the
registrant's renewal month(s) falls on a Saturday, Sunday, holiday, or other
day that the issuing office is closed, the registrant may renew his or her
motor vehicle registration without penalty or interest charges the next
business day.
(9)
Appeal of Penalty. §
40-12-10,
Code of Ala. 1975, provides that a license issuing
official cannot "fail to collect such penalties when issuing such license."
However, anyone determined to be subject to a registration law penalty may,
after paying the penalty, seek a review by a court of competent jurisdiction to
seek a refund of the penalty or interest charges. Registration penalties
assessed on vehicles subject to registration under §
32-6-56,
Code of Ala. 1975, may be appealed by filing a notice
of appeal in accordance with §
40-2A-7,
Code of Ala. 1975.
Authors: Sherry Helms, James P. Starling,
Michael D. Gamble
Statutory Authority:
Code of Ala.
1975, §§
32-6-56,
32-6-61,
32-6-65,
40-1-44,
40-2A-7,
40-2A-7(a)(5),
40-9-12,
40-12-10,
40-12-240,
40-12-249,
40-12-250,
40-12-255,
40-12-260,
40-12-262,
40-12-264.
