HB96 Alabama 2021 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2021

Title

Motor vehicle dealers and motorcycle dealer, used vehicle license plates, combined total increased, Sec. 40-12-264 am'd.

Summary

HB96 increases the total number of dealer and motorcycle dealer license plates a used motor vehicle dealer may purchase and adds related uses, fees, and restrictions.

What This Bill Does

HB96 amends the dealer license plate rules to raise how many dealer and motorcycle dealer plates a dealer may purchase. It keeps a cap of 35 plates for new dealers and increases the cap for used dealers, and adds up to 25 additional plates for dealers with 300+ title transfers in the prior year. It also establishes and/or maintains temporary and auction transit plates with set fees and limits their use to transporting or demonstrating vehicles in inventory, plus a 20-day grace period to obtain plates. It also clarifies tax/fee exemptions, penalties for misuse, and other administrative provisions.

Who It Affects

• Used motor vehicle dealers would be allowed to purchase more dealer and motorcycle dealer plates (including potential extra plates if they had 300+ title transfers in the prior year), with usage limited to dealership-owned vehicles in inventory and various demonstration rules.
• New motor vehicle dealers would still be limited to 35 plates unless they qualify for additional plates under the 300+ title transfers rule; they would also be eligible for the same transit, auction, and manufacture plate options and associated fees and restrictions.

Key Provisions

• Raises the maximum combined total of dealer and motorcycle dealer license plates a used motor vehicle dealer may purchase (and maintains a 35-plate cap for new dealers; up to 25 additional plates may be available for those with 300+ title transfers in the prior year).
• Provides a 20-day grace period to obtain a license tag after acquiring a vehicle.
• Allows dealers to purchase dealer and motorcycle plates from the department with current licenses and sets base fees; adds a $2 issuance fee.
• Permits seven-day dealer transit plates and seven-day auction transit plates with a $5 fee; limits their use to transporting vehicles or for auctions, not for service or other commercial uses.
• Authorizes manufacturer license plates for manufacturers located in Alabama, with a $2 issuance fee and the word 'manufacturer' on the plate; permits use for transporting/testing new vehicles.
• Plates issued under this section are exempt from local ad valorem taxes and local registration fees, and related penalties do not apply when issuing plates under these provisions.
• No local sales tax shall be collected by local officials when standard plates are issued for vehicles held in dealer inventory; penalties for misuse include $200 for the first violation and $500 for each subsequent violation.
• Surrender of plates is required within 10 days of license suspension, revocation, or discontinuation of business; penalties for false statements or misuse may include criminal penalties and civil penalties.
• Fees collected under this section are not prorated and are continuously appropriated to the department; no refunds.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles