Filing fee increase proffered

In an effort to help the state’s deputy registrars cover their expenses, the state’s filing fee for motor vehicle transactions, such as registration renewals and title transfers, could increase by $1.50.

Sponsored by Rep. Larry Howes (R-Walker), HF347 was approved on a split-voice vote March 14 by the House Transportation Policy and Finance Committee, and sent to the House Ways and Means Committee. A companion, SF368, sponsored by Sen. David Senjem (R-Rochester), awaits action by the Senate Finance Committee.

The current $4.50 filing fee for renewals has not increased since 2001, and the

$8.50 fee for title transactions has not increased since 2005.

Of the state’s 175 deputy registrars, about two-thirds exist where a county or city offers the service, and about one-third are private, such as at a jewelry store in Pine River. Registrars stock their own offices with necessary supplies and equipment, such as computers and faxes. Filing fees must cover all operational costs; there are no state subsidies.

While cities and counties can provide financial assistance to keep the public registrars open, the privates do not necessarily have that backup.

“Living in rural Minnesota, folks don’t like to do it online or in the mail. ... They’d rather go to our local deputy registrars,” Howes said. “They honestly, quite frankly, need this money to stay in business.”

He said deputy registrars perform about 5 million transactions annually, while the state does about 800,000. “Imagine if they all went out of business. The state then would be doing all of them and I’m sure they’d be at this committee asking for more FTE’s or more funding.”

Without this increase, supporters said changes would likely include reduced staff, reduced hours or registrars closing. Many transactions, such as titling or transferring a vehicle, must be done in person.

People assume these are state offices or state employees, but they are not, said Jim Hirst, a lobbyist representing the Minnesota Deputy Registrar’s Association. He said 65 percent of public registrars lost money last year; 38 percent of privates.