Posted: August 31st, 2016

What are the additional costs?

The sources of revenue for the DMV are as follows:
– auto license fees: $25 for the old style license and $30 for the new improved digitized license with all security features;
– vehicle registration fees: $53 per vehicle registered, on average;
– vehicle inspection fees: $35 for failing the inspection–otherwise no fee. It is expected that 15 percent of the total number of vehicle registrations will result in inspection failures and re-inspections;
– state appropriation-for any balance not funded by fees; and
– transportation tmst fund-for capital acquisitions.
The costs of running your department consist of personnel expenses, materials and supplies, and a variety of purchased services. Personnel costs have a fixed administrative component of $6.5 million per year that is not affected by the DMV’s service volume. Administrators are paid evenly throughout the year. Other personnel costs average $2 per transaction, regardless of transaction type, including issuance of an auto license, vehicle registration, vehicle inspection, or administration of any type of test. Materials and supplies cost $.30 per transaction. These costs are incurred each month in direct relation to the number of transactions for the month. The $2 personnel and $.30 materials and supplies cost per transaction are not required for insurance inquiries. Other departmental overhead costs include heat, electricity, and rent. Those costs are fixed at $8 million, and are paid evenly throughout the year.
Additionally, the DMV pays outside contractors on the following fee schedule:
– $17 per vehicle inspected
– $2 per vision test
– $15 per road test
– $5 per written test
– $25 per license plate (30 percent of all vehicle registrations require new license plates)
– $10 per driver’s license (old style) and $37 per license (new digitized licenses)

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