HB256 Summary

• Limits dealer license plates to 25 for new motor vehicle dealers, 10 for used motor vehicle dealers, and 10 for motorcycle dealers, with additional plates available for dealers completing 1,500 or more title transfers annually.

• Restricts dealer license plate use to vehicles owned by the dealership and held for resale in inventory, and prohibits use on rental, lease, tow trucks, or service vehicles.

• Creates new dealer transit license plates (maximum 10 per dealer) for wholesalers, rebuilders, and reconditioners to display, test, or transport vehicles in wholesale inventory.

• Eliminates refunds of dealer license plate fees and increases civil penalties for misuse from $300 to $500 for subsequent violations; makes willful misstatements to obtain dealer plates a Class A misdemeanor with $1,000 civil penalty.

• Requires dealers to register and purchase regular license plates for vehicles withdrawn from inventory, and prohibits license renewal for dealers with unpaid civil penalties.