Michigan Senate Bill SB0695

Michigan 2025-2026 Regular Session

• Introduced: 10/30/25
• Refer: 10/30/25
• Report Pass: 3/12/26
• Refer: 3/12/26
• Report Pass: 3/17/26
• Engrossed: 3/18/26
• Refer: 3/18/26

Caption

Vehicles: registration; reference to the Michigan election law in the Michigan vehicle code; modify. Amends sec. 801j of 1949 PA 300 (MCL 257.801j). TIE BAR WITH: SB 0691'25

Summary

SB 695 amends section 801j of the Michigan Vehicle Code to authorize a regional transit authority to levy an additional vehicle registration tax on residents of a public transit region, up to $1.20 per $1,000 of a vehicle’s list price. The tax can only be imposed if approved by a majority of voters in the affected public transit region at a November election, and the ballot question must state how the revenue will be spent. The bill limits use of the proceeds to “comprehensive transportation purposes” under the state constitution and requires the regional transit authority board to adopt and certify the proposal before it can be placed on the ballot. If approved, the Secretary of State must begin collecting the tax within one year and remit the revenue to the transit authority, less necessary collection expenses calculated using an established cost allocation methodology. The bill also exempts company test vehicles owned by manufacturers and used for testing or product evaluation, and it would take effect January 1, 2028, only if the tie-barred Senate Bill 691 is also enacted.

Impact

The bill would change Michigan law governing vehicle registration taxes by creating a new local option funding mechanism for regional transit authorities in public transit regions. It would amend MCL 257.801j to add a voter-approved surtax on vehicle registrations, shift collection responsibility to the Secretary of State, and direct the revenue to the regional transit authority for constitutionally permitted transportation uses. The exemption for company test vehicles narrows the tax base for certain manufacturer-owned vehicles.

Sentiment

The available vote history suggests the bill was generally supported in the Senate, moving out of committee 6-0 and passing the Senate 27-6. That pattern indicates broad, though not unanimous, agreement on the measure. No committee transcript is available, so the record does not show detailed debate, but the favorable votes suggest the bill was viewed as a practical transit funding tool by most supporters.

Contention

The main points of contention likely concern the creation of a new vehicle registration tax and the requirement that residents in a public transit region pay it if voters approve the measure. Opponents may object to the added cost for vehicle owners, while supporters likely emphasize local voter control and dedicated transit funding. The exemption for company test vehicles and the tie-bar to SB 691 are also notable features, as they limit the bill’s standalone effect and indicate it is part of a broader legislative package.