Posted: July 12th, 2016

What is the DMV?

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)

The Director of the DOT is hoping the DOT’s financial situation will allow for expanded subsidies of public transportation. As such, she is hoping that each division of the DOT will at least break even, if not show a profit. Although you realize that the DMV will receive a State subsidy to operate if needed, you know that your boss would be unhappy if such a subsidy is needed for your division.

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