State DMV weighs fee changes; counties disagree

Difference small for citizens, big for governments

AUSTIN — It’s a recurring debate in Texas politics — local government control versus big government regulation — this time applied to vehicle registration and title services.

Several Texas counties, including Harris, Bexar and Travis, are objecting to a state plan to increase the cost of in-person or mail-in automobile registrations while cutting the cost of doing it online.

Under a Texas Department of Motor Vehicles plan, processing fees for mail-in registrations would go up by $3, while in-person fees would increase by $4. The fee for online transactions would decrease by 25 cents from the current price, but cost $1.25 less than registering by mail. As a result, counties would receive less per transaction than they do at current rates.

The DMV also wants to cap the amounts that titleservice companies can charge for registration ($5) and title transactions ($15).

“I hear people at the state always saying … the federal government is trying to take away state rights,” Bexar County Tax Assessor Albert Uresti said. “This is an example of the state trying to take away local government rights. And who better serves the public than lo- cal government?”

DMV board members, who presented the plan at a meeting earlier this month, say the fee changes will modernize and streamline the process for these services, particularly since it offers an incentive to do business online.

“What we are trying to do is change the way we do business and push more of those registration renewal transactions online,” DMV Executive Director Whitney Brewster said.

Some, like Uresti, say it effectively will shut down the state’s title services, lead to worse customer service and result in an increased burden on the county and taxpayers. Bexar County has 21 full service employees and 42 limited employees to handle registration and title services.

“No matter what the plan is for centralizing, Bexar County is still go- ing to have to be involved. … People are just used to coming into the tax office,” Uresti said. “It will take years before it transitions. The system is working fine right now, and we just don’t see a need to change it.” What is ‘realistic’?

Currently 15 percent of state registration transactions are performed online, compared to 18 percent in Bexar County. Most state transactions, 65 percent, are handled in person.

Bexar County plans to offer the state an alternative proposal for registration fees that would increase the fees on online registrations by 25 cents in a bid to bring more money to the counties.

Tony Lazzari, president of local title-service companies San Antonio Auto Title Services and Tisdale Auto Title Services, took particular issue with fee caps to his industry.

The Bexar County businessman, who has eight title-service businesses around the county, said his offices could not continue operating with the proposed $5 and $15 limits and would have to cease operations come January 2017, when the proposal is implemented.

“If they pass this and they don’t give us any leeway, title services are going to start dropping like flies,” said Lazzari, who testified at this month’s board meeting and whose title service businesses have been in operation for 38 years.

Such a loss of title companies would result in the county needing four more new locations and 70 new employees, according to Uresti.

“We’re not opposed to a cap,” Uresti said. “What we are saying is, let’s come up with a realistic range, a realistic cap, and let the market dictate what they’re going to charge.” ‘All about efficiency’

Harris County Tax Assessor Mike Sullivan opposes the proposed registration and title-service fee changes, saying the state’s plan centralizes the services while leaving counties with the more labor-intensive work with less compensation per transaction.

“I’m all about efficiency … but I do think that the state should reimburse counties for the true expenses of doing the work,” Sullivan said.

Sullivan, who estimates the fee structure change would cost Harris County $1.7 million in lost revenue, said his office is assembling written comments for the board.

A public comment period for the proposal ends May 23. The board plans to make its decision in June.