Alabama Independent Automobile Dealers Association

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License Plate/Vehicle in inventory
28 Oct 2011 11:02 am
The Motor Vehicle Division has received several reports from dealers who have attempted to purchase standard license plates for vehicles that are in their dealer inventory, but are used as loaner vehicles. Some license plate issuing offices are refusing to issue standard plates to dealers. This memorandum seeks to address this issue. Alabama law does not prohibit a dealer from purchasing a standard or distinctive license plate to be used on any vehicle the dealer holds in inventory. The dealer would be required to provide proof that the vehicle title or MSO has been properly assigned to the dealer. The registration would be issued in the dealership's name and would include the specific vehicle information on the Motor Vehicle Registration Tag/Tax Receipt. If the vehicle is in the dealer inventory, the vehicle is exempt from all ownership taxes (ad valorem, sales, use, etc) that are normally paid by the owner when the vehicle is titled and registered. If you have additional questions regarding this memorandum, please contact the Motor Vehicle Division at tags@revenue.alabama.gov or (334) 242-9006.
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The Motor Vehicle Division has received several reports from dealers who have attempted to purchase standard license plates for vehicles that are in their dealer inventory, but are used as loaner vehicles. Some license plate issuing offices are refusing to issue standard plates to dealers. This memorandum seeks to address this issue. Alabama law does not prohibit a dealer from purchasing a standard or distinctive license plate to be used on any vehicle the dealer holds in inventory. The dealer would be required to provide proof that the vehicle title or MSO has been properly assigned to the dealer. The registration would be issued in the dealership's name and would include the specific vehicle information on the Motor Vehicle Registration Tag/Tax Receipt. If the vehicle is in the dealer inventory, the vehicle is exempt from all ownership taxes (ad valorem, sales, use, etc) that are normally paid by the owner when the vehicle is titled and registered. If you have additional questions regarding this memorandum, please contact the Motor Vehicle Division at tags@revenue.alabama.gov or (334) 242-9006.
DEALER LICENSE PLATE BILL
29 Sep 2011 12:57 pm
Printable Version DEALER LICENSE PLATE BILLDEALER TAGS: Legislation proposed by the Department of Revenue to eliminate abuse in the dealer tag system takes effect October 1, 2011. The measure went through a number of changes during the legislative process negotiated between AIADA, ADAA, and the Department to ensure that dealers will have the tags they need and the flexibility to use them while stamping out corruption in the current system which has given legitimate dealers a black eye.Limits the number of dealer license plates a new car dealer can purchase each year to a maximum of twenty-five (25) plates. Used car dealers and motorcycle dealers will be able to purchase a maximum of ten (10) plates. In addition, dealers who sell more than 1,500 (process 1500 title applications from previous regulatory license year) vehicles per year may acquire an additional 25 dealer plates.Both new and used car dealers may also purchase up to ten (10) dealer transit license plates each year. Recent dealer audits revealed that some dealers who acquired large number of dealer license plates were allowing non-dealers to use them contrary to Alabama law. The new, brightly colored tag may only be used to transport vehicles.Removes language allowing dealer license plates to be used at any time, by anyone, for any purpose.Provides permissible uses for dealer license plates on vehicles being held in dealer inventory as follows:Dealership owners, partners, or corporate officers and employees;Vehicles being used for demonstration purposes (72 hour limit).On loan to a high school student driver education program;Loaners for customers whose vehicles are being repaired by the dealership;Removes wholesale dealers, rebuilders and reconditioners from the list of eligible parties who may obtain dealer license plates. Instead, they will be eligible to purchase up to ten (10) dealer transit license plates each year. This will eliminate dealer license plate misuse identified in recent dealer audits conducted by ADOR.Increases penalties for misuse of dealer license plates and dealer transit license plates to $500 for second and subsequent offenses, and $1,000 penalty for willful misstatements to obtain these license plates. First offenses would still carry a $100 penalty. The bill includes a provision to prevent dealers, wholesalers, rebuilders and reconditioners from renewing their regulatory license if there are unpaid assessments resulting from these penalties.
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<a href="/dealer_license_plate_bill.pdf" target="_blank"><font face="Arial, Helvetica, sans-serif">Printable Version </font></a>DEALER LICENSE PLATE BILLDEALER TAGS: Legislation proposed by the Department of Revenue to eliminate abuse in the dealer tag system takes effect October 1, 2011. The measure went through a number of changes during the legislative process negotiated between AIADA, ADAA, and the Department to ensure that dealers will have the tags they need and the flexibility to use them while stamping out corruption in the current system which has given legitimate dealers a black eye.Limits the number of dealer license plates a new car dealer can purchase each year to a maximum of twenty-five (25) plates. Used car dealers and motorcycle dealers will be able to purchase a maximum of ten (10) plates. In addition, dealers who sell more than 1,500 (process 1500 title applications from previous regulatory license year) vehicles per year may acquire an additional 25 dealer plates.Both new and used car dealers may also purchase up to ten (10) dealer transit license plates each year. Recent dealer audits revealed that some dealers who acquired large number of dealer license plates were allowing non-dealers to use them contrary to Alabama law. The new, brightly colored tag may only be used to transport vehicles.Removes language allowing dealer license plates to be used at any time, by anyone, for any purpose.Provides permissible uses for dealer license plates on vehicles being held in dealer inventory as follows:Dealership owners, partners, or corporate officers and employees;Vehicles being used for demonstration purposes (72 hour limit).On loan to a high school student driver education program;Loaners for customers whose vehicles are being repaired by the dealership;Removes wholesale dealers, rebuilders and reconditioners from the list of eligible parties who may obtain dealer license plates. Instead, they will be eligible to purchase up to ten (10) dealer transit license plates each year. This will eliminate dealer license plate misuse identified in recent dealer audits conducted by ADOR.Increases penalties for misuse of dealer license plates and dealer transit license plates to $500 for second and subsequent offenses, and $1,000 penalty for willful misstatements to obtain these license plates. First offenses would still carry a $100 penalty. The bill includes a provision to prevent dealers, wholesalers, rebuilders and reconditioners from renewing their regulatory license if there are unpaid assessments resulting from these penalties.

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License Plate/Vehicle in inventory

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DEALER LICENSE PLATE BILL

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