DAR File No. 41702

Tax Commission, Motor Vehicle

Section R873-22M-2

Documentation Required and Procedures to Follow to Register or Title Certain Vehicles Pursuant to Utah Code Ann. Sections 41-1a-104 and 41-1a-108

Notice of Proposed Rule

(Amendment)

DAR File No.: 41702
Filed: 05/25/2017 11:38:36 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment conforms the section to Tax Commission practice.

Summary of the rule or change:

The proposed amendment deletes references to affidavits where affidavits are no longer required; updates the proof of notice required to title or register a vehicle foreclosed by advertisement to match current statutes; clarifies long-standing agency practice to require an indemnification agreement in all cases when satisfactory documentary evidence of ownership is lacking and the applicant has exhausted all normal means of obtaining evidence of ownership; and makes technical changes.

Statutory or constitutional authorization for this rule:

• Section 41-1a-108
• Section 41-1a-104

Anticipated cost or savings to:

the state budget:

None--The amendment reflects current agency practice.

local governments:

None--The amendment reflects current agency practice.

small businesses:

None--The amendment reflects current agency practice.

persons other than small businesses, businesses, or local governmental entities:

None--The amendment reflects current agency practice.

Compliance costs for affected persons:

None--The amendment reflects current agency practice.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact on businesses.

Rebecca Rockwell, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Tax Commission
Motor Vehicle
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/17/2017

This rule may become effective on:

07/24/2017

Authorized by:

Rebecca Rockwell, Commissioner

R873. Tax Commission, Motor Vehicle.

R873-22M. Motor Vehicle.

R873-22M-2. Documentation Required and Procedures to Follow to Register or Title Certain Vehicles Pursuant to Utah Code Ann. Sections 41-1a-104 and 41-1a-108.

[A.](1) To title or register a vehicle previously registered in a nontitle state, an applicant must submit both of the following:

[1.](a) the last [certificate of ]registration certificate; and

[2.](b) a lien search from the recording jurisdiction or [an "Affidavit of Ownership"]form TC- 569A, Ownership Statement, in lieu of the lien search.

[B.](2) To title or register a repossessed vehicle, an applicant must submit both of the following:

[1.](a) the outstanding certificate of title, with the lien recorded in favor of the repossessor; and

[2.](b) [an approved affidavit of repossession]form TC-569B, Repossession Statement, signed by the lien holder recorded on the certificate of title or a similar statement or form.

[C.](3) To title or register a vehicle previously owned by the U.S. [Government]government, an applicant must submit [a Certificate of Release of a Motor Vehicle,]U.S. government Standard Form No. 97.

[D.](4) To title or register a vehicle foreclosed by advertisement, an applicant must submit each of the following:

[1.](a) a certificate of sale bearing the [notarized ]signature of the person who conducted the sale. The certificate must contain the following information:

[a.](i) date of sale;

[b.](ii) name of person to whom the vehicle was sold;

[c.](iii) complete description of the vehicle;

[d.](iv) amount due on the contract;

[e.](v) date that the amount due became delinquent; and

[f.](vi) amount received from the sale of the vehicle[.];

[2.](b) a copy of the notice sent to the owner and lien holder of record; and

[3.](c) proof that notice was published [two consecutive weeks prior to sale. If the notice was not published in a newspaper, an affidavit of posting of notices must be furnished. Posting must be at least ten days prior to sale]in accordance with Sections 38-2-4 or 38-8-3, as applicable.

[E.](5) To title or register a vehicle transferred by divorce decree an applicant must submit each of the following:

[1.](a) a certified copy of the divorce decree;

[2.](b) the outstanding certificate of title; and

[3.](c) the last registration certificate for a nontitle state.

[F.](6) To title or register a vehicle when the current owner is declared incompetent, an applicant must submit each of the following:

[1.](a) the outstanding certificate of title, endorsed for transfer by the guardian;

[2.](b) the last registration certificate for a nontitle state; and

[3.](c) a certified copy of the court order appointing the guardian.

[G.](7) To title or register a vehicle purchased at impound auction, an applicant must submit a certificate of sale that contains the following information:

[1. legal basis under which the vehicle was impounded and sold:]

[2.](a) a complete description of the vehicle;

[3.](b) name of the purchaser; and

[4.](c) the [notarized ]signature of the state, city, or county official who conducted the sale.

[H.](8) To title or register a vehicle transferred pursuant to a power of attorney, an applicant must submit the [properly notarized ]power of attorney to the Tax Commission.

[I.](9) To title or register a vehicle transferred from a deceased owner when [a survivorship affidavit is not applicable]form TC-569C, Survivorship Affidavit, does not apply, the applicant must submit the outstanding certificate of title [and]or the last registration [card]certificate for a nontitle state. In addition, the applicant must submit one of the following:

[1.](a) a certified copy of the final decree of distribution;

[2.](b) an order from the court confirming sale; or

[3.](c)(i) an endorsement on the title by the administrator, executor, or personal representative with a certified copy of letters of administration, letters testamentary, or letters appointing a personal representative attached.

[a.](ii) When the title is issued in joint ownership where the owners names are connected with "and" or [a ]"/" , the survivor may transfer ownership by endorsement only and by furnishing proof of death of the other joint owner.

[J.](10)(a) [The Tax Commission may issue a title or a dismantle permit upon receipt of a court order or upon receipt of an affidavit and surety bond when]When satisfactory documentary evidence of ownership is lacking and the applicant has exhausted all normal means of obtaining evidence of ownership , the Tax Commission may issue a title or a dismantle permit upon receipt of:[.]

(i) a court order; or

(ii) subject to Subsections (10)(b)(ii) and (iii), form TC-569A, Ownership Statement.

[1.](b)(i) The [affidavit]form required under Subsection (10)(a)(ii) must contain each of the following:

[a)](A) a complete recital of facts explaining the absence of a negotiable title or current registration for nontitle states;

[b)](B) an explanation of how the vehicle was obtained and from whom;

[c)](C) a statement indicating any outstanding liens or encumbrances on the vehicle;

[d)](D) a statement indicating where the vehicle was last titled or registered;

[e)](E) a description of the vehicle;

[f)](F) any other items pertinent to the acquisition or possession of the vehicle[.]; and

[2.](G) [The Tax Commission may issue a title or a dismantle permit upon receipt of an affidavit and ]an indemnification agreement holding the Tax Commission and its employees harmless from any and all liability resulting from the issuance of the title or dismantle permit .[if the vehicle satisfies each of the following conditions:

a) the vehicle is not a motorcycle;

b) the vehicle has a value of $1,000 or less at the time of application;

c) the vehicle is six model years old or older.]

[3.](ii) If the vehicle has a value of $1,000 or less at the time of application, and the vehicle is [not more]less than six model years old, or the vehicle is a motorcycle, [a title or dismantle permit may not be issued until the vehicle is physically examined]the vehicle may be subject to a physical examination by [a qualified investigator]an employee appointed by the Tax Commission prior to issuance of a title or dismantle permit.

[4.](iii) If the vehicle has a value in excess of $1,000, the Tax Commission may require a surety bond in addition to the [affidavit]form described in Subsection (10)(a)(ii). The amount of the surety bond may not exceed twice the fair market value of the vehicle as determined by the Tax Commission.

[K.](11) To title or register a specially constructed or rebuilt vehicle, an applicant shall furnish [an affidavit of construction]form TC-569D, Statement of Facts, explaining the acquisition of essential parts and the date construction was completed. The [affidavit]form must be supported by bills of sale or invoices for the parts.

[1.](a) An application for an identification number must be completed. The assigned number shall be affixed to the vehicle and inspected by a peace officer or an authorized agent of the Tax Commission.

[2.](b) The vehicle make shall be designated as "SPCN" (specially constructed), and the year model shall be determined according to the date the construction was completed.

[3.](c) If satisfactory evidence of ownership is lacking, the procedure outlined in [J. shall]Subsection (10) must be followed.

[4.](d) In the case of a dune buggy or similar type vehicle where the complete running gear and chassis of another vehicle is used, the identification number of the vehicle used as the primary base of the rebuilt vehicle shall be used for identification and must correspond to the identification number on the surrendered certificate of title.

[5.](e) The rebuilt vehicle shall retain the manufacturer's name as it appeared on the surrendered title. However, the word "rebuilt" shall be placed on the application and on the face of the title issued by the Tax Commission. The type of body and vehicle model may be changed to more accurately describe the vehicle. If a new body is used, the year model shall be determined by the date the rebuilding is complete. If only the body style has been altered or changed, the vehicle shall retain the year model stated on the surrendered title.

 

KEY: taxation, motor vehicles, aircraft, license plates

Date of Enactment or Last Substantive Amendment: [July 14, 2016]2017

Notice of Continuation: November 10, 2016

Authorizing, and Implemented or Interpreted Law: 41-1a-102; 41-1a-104; 41-1a-108; 41-1a-116; 41-1a-211; 41-1a-215; 41-1a-214; 41-1a-401; 41-1a-402; 41-1a-411; 41-1a-413; 41-1a-414; 41-1a-416; 41-1a-418; 41-1a-419; 41-1a-420; 41-1a-421; 41-1a-422; 41-1a-522; 41-1a-701; 41-1a-1001; 41-1a-1002; 41-1a-1004; 41-1a-1005; 41-1a-1009 through 41-1a-1011; 41-1a-1101; 41-1a-1209; 41-1a-1211; 41-1a-1220; 41-6-44; 53-8-205; 59-12-104; 59-2-103; 72-10-109 through 72-10-112; 72-10-102