QUARTERLY PAYMENT OF TRUCK REGISTRATION FEES QUARTERLY PAY REGISTRATION

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1 QUARTERLY PAYMENT OF TRUCK REGISTRATION FEES QUARTERLY PAY REGISTRATION JULY 2013; KEYWORDS Quarter Pay Quarterly Pay STATUTES, (KSA) a NEW WHEN IS THIS FUNCTION USED Back With the exception of vehicles proportionally registered as part of a fleet, resident owners of trucks and truck-tractors may pay the annual registration fee in equal, quarterly installments, providing such annual registration EXCEEDS $100. This includes individuals, partnerships or Kansas corporations. FIRST QUARTER PAYMENT DUE The first quarterly payment is payable at the time of making application renewing the registration, BUT NOT LATER THAN THE LAST DAY OF FEBRUARY. SECOND, THIRD & FOURTH QUARTER PAYMENT DUE The remaining payments being due on the first day of April/Second Quarter, July/Third Quarter, and October/Fourth Quarter. Payment must be paid by the 10 th of the month due. The second, third, and fourth quarterly notices ARE MAILED BY THE COUNTY TREASURER'S OFFICE approximately two weeks before the first of the month the quarter is due. If the 10 th of the month falls on the weekend and/or a holiday, the payment is due on the first working day following the weekend or the holiday. SURRENDERING NEGOTIABLE KANSAS TITLE The owner must submit a negotiable Kansas title or the Kansas etitle receipt to the County Treasurer at the beginning of the registration period, first quarter. NOTE: County Treasurer s offices will hold the title until the end of the registration period or until a cancellation is done. TRUCKS LEASED FROM A KANSAS OWNER In the case of trucks or truck-tractors that are leased for a period of 30 days or more, registration is not required in

2 the name of the lessee under quarterly payment registration. The resident lessor, if quarterly payment is desired, must secure such registration. The owner must submit a negotiable Kansas title to the County Treasurer. NOTE: County Treasurer s offices will hold the title until the end of the registration period or until a cancellation is done. DEFAULT IN PAYMENT Regulations and penalties are as follows: 1. If any owner defaults in the payment of a quarterly installment payment, the right to operate a vehicle registered on a quarterly payment basis shall terminate. 2. If any owner twice fails to pay quarterly payment installments when due on more than one vehicle during any one registration year, such owner thereafter may be denied the privilege of annual registration fees on a quarterly basis on any vehicle. 3. If a quarterly installment payment is delinquent more than ten days, the entire balance of the annual registration fee, including the delinquent quarterly installment, plus a penalty equal to ten percent (10%) of the annual registration fee, will be due and payable. On the 11 th day in a renewal quarter they are delinquent. 4. All fees and penalties due on a vehicle registered on a quarterly payment basis constitute a lien against the vehicle in favor of the State of Kansas. COUNTY TREASURER FILING NOTICE OF LIEN The following are the requirements for filing a Notice of Lien for delinquent quarterly installment payment: 1. INFORMATION: The Notice of Lien must include the name and address of the owner, the amount of fees and penalties due, and the description of the vehicle. 2. FILING NOTICE: Upon the default of a quarterly payment installment, the County Treasurer shall file a notice of lien in the office the Register of Deeds of the county where the registration fee is payable. Notice of lien MOVRS Policy & Procedures 2 Kansas Division of Vehicles

3 shall also be filed in any other county in which the registered owner has property. 3. FORWARDING NOTICE: The County Treasurer must forward a copy of the notice of lien to: The Central Office Operations, The owner of the vehicle and, The sheriff of any county in which the Notice of Lien is filed. 4. OWNER PAYS OFF LIEN: Upon payment of fees and penalties due by the registered owner, the County Treasurer must forward a copy of the Release of Lien to: The Central Office Operations. The sheriff of any county where the Notice of Lien has been filed. The Register of Deeds office. REGISTER OF DEEDS FILING REQUIREMENT It is the duty of the Register of Deeds in this state to index and file immediately all Notices of Lien, reflecting delinquent quarterly truck payment registration fees, in the manner provided in cases of financing statements. No fee can be charged for such filing and indexing. TAX WARRANT REQUIREMENT If a quarterly installment payment is delinquent more than ten (10) days from the due date (1 st day of the quarter), Central Office Operations will issue a tax warrant to the sheriff of any county in which the Notice of Lien has been filed. Further warrants may be issued as necessary. The sheriff upon receipt of the tax warrant shall seize and hold all personal property indicated in the lien. The sheriff will proceed to advertise and sell the property to satisfy the state lien, together with the expense of the public sale, as is provided by law in the case of a security agreement sale. Any proceeds remaining after lien payment and sale expenses have been paid to the County Treasurer must be returned to the person whose property has been sold. MOVRS Policy & Procedures 3 Kansas Division of Vehicles

4 REFUND AND/OR CANCELLATION OF BALANCE - QUARTER PAYMENT ONLY When the vehicle is sold, junked, repossessed, foreclosed by a mechanics lien or the title is transferred by operation of law and the registration is not going to be transferred to another vehicle, the original registered owner may apply for a refund and/or cancellation of balance. A Manual Cancellation form, TR-86, is to be completed and surrendered, along with the registration receipt and license plate, at the office of the County Treasurer. The County Treasurer needs to collect the FEIN number for a business or the Social Security number for an individual. The TR- 86 form must be signed by the owner(s) or by the person who has a power of attorney to sign for the owner. The Social Security number must be the number issued to the owner of the vehicle. The TR-86 form and a copy of the last quarterly payment registration are to be forwarded to the state in the quarterly payment envelopes. If a vehicle registered under quarterly payment registration is transferred in ownership, the original registered owner must apply for a refund and/or cancellation of balance to stop the accrual of quarterly payment installments and penalty charges. In the event of the registered owner's death, the filing of the cancellation application and returning of registration receipts and license plate shall cancel all remaining quarterly payments. LIEN HOLDER REPOSSES VEHICLE If the truck or truck-tractor is repossessed by the enforcement of a lien or security interest, during any quarterly period for which the registration fees have been paid, the person repossessing such vehicle or the person purchasing the vehicle at a repossession sale may acquire a new certificate of title by paying a fee equal to one fourth of the annual registration fee plus the fee for a certificate of title. PROOF OF INSURANCE The applicant must present proof of insurance and the County Treasurer s staff must examine this proof before taking the application. Examination of a photocopy or fax of the proof of insurance shall meet the requirement of proof. MOVRS Policy & Procedures 4 Kansas Division of Vehicles

5 LIEN RELEASES If a quarterly payment customer satisfies the lien on their vehicle and presents a lien release, the county should process the lien release and IMMEDIATELY teresa.akin@kdor.ks.gov AND hope.burns@kdor.ks.gov to inform them. The title will be picked up by them and mailed in a quarterly payment envelope to the county treasurer s office to be held until the end of the quarter pay period. MOVRS Policy & Procedures 5 Kansas Division of Vehicles

6 QUARTERLY PAY REGISTRATION JULY 2013; NEW JOB AID PROCEDURE Back This procedure is the narrative from the web site for the DMV Project s Job Aid for Quarterly Payments on Heavy Trucks, without the pictures. To view the job aid with the pictures use the address below: x?cuid=4#other QUARTERLY PAYMENTS ON HEAVY TRUCKS DMVS has different capabilities for processing quarterly payments on heavy trucks. Therefore, this will identified steps the counties must take to renew these vehicles. In the following information, the process to perform the registration transaction is identified as well as the workarounds for the previous business processes. This job aid is more informational rather than step-bystep. You will begin by performing a quarterly registration as a Registration Renewal in DMVS. QUARTERLY REGISTRATION AS A REGISTRATION RENEWAL On the VRT menu, click Registration Transactions and then Registration Renewal. The Registration Renewal Prequalifier window displays. In the Vehicle ID# field, enter the plate or VIN. Verify the Vehicle ID Type is correct and click the Continue button. The Registration Renewal window displays. On the Application tab, in the Registration group, select the applicable quarterly period from the Exp Date drop-down list. Only the most current quarter displays. Once you select the most current quarter, the fees and registration period are reflected. On the Fee Detail tab, verify the correct amount of the expected quarter of the full year fee displays as well as the $5.00 County Service Fee and the $4.00 DMV Modernization Fee. Finish the registration transaction. The expiration date for that quarter prints on the registration receipt, however the decal that prints for each quarter will MOVRS Policy & Procedures 6 Kansas Division of Vehicles

7 display the February month of expiration for the following year as the current business process does now. If a Vehicle Registration Inquiry report is made for that vehicle, the registration period shows for that quarter as well. You must now add an Exception to the vehicle record. This ensures that a duplicate title cannot be issued or a lien released title mailed out until the 4th quarterly payment has been processed. On the Tools menu, click Exception Case Management. The Exception Case Filter window displays In the Vehicle Search group, enter the VIN and click the Continue button. The Exception Case Maintenance window displays. Click the Add Row button. In the Exception Code drop-down list, select 190 Quarterly Payment. In the Origin drop-down list, select County Treasurer. Click the Save button. Click the OK button on the Special Handling dialog box. KEY POINTS TO REMEMBER DMVS allows for only one quarter to be paid at a time. If the customer wants to pay for the next quarter early, they must be within 45 days of the expiration date for that quarter. There is no distinctive marker for the quarterly payment in DMVS. The only difference is an expiration date for a truck, truck tractor or bus that is out of sync with the December 31 yearly expiration with applicable usage and a weight of 16,000 or more. Counties are still required to make notification to the customer for the quarter that is due. The second, third and fourth quarterly notices are to be MAILED BY THE COUNTY TREASURER S OFFICE approximately two weeks before the first day of the month the quarter is due. First Quarter: The first quarterly payment is payable at the time of making application for renewing registration but no later than the last day of February. MOVRS Policy & Procedures 7 Kansas Division of Vehicles

8 Second, Third and Fourth Quarter: These quarterly payments are due on the first of April, July and October respectively. Payment must be made by the 10th of the month due. If the 10th falls on a weekend and/or a holiday, the payment is due on the first working day following the weekend or holiday. FAILURE TO PAY WITHIN THE ALLOTTED TIME Kansas statute allows for a 10-day grace period from the April 1, July 1 and October 1 due dates. If payment is made on the 11th day or later, the customer must pay the full year fees plus 10% in penalties. DMVS does not calculate the statutory fees and penalties. Counties will need to do manual adjustments on the Fee Detail tab in a Registration Renewal transaction to add statutory late fees of 10% of the full year fee in place of the one dollar per month penalty generated by DMVS. The remaining portion of the yearly registration fee, along with the $4.00 Modernization Fee and $5.00 County Service fee per quarter, will be collected from the customer and put into a Vehicle Escrow Account in DMVS. (Reference Escrow Accounts job aid for steps to create and use escrow account). VEHICLE ESCROW ACCOUNT Counties will need to use their own manual reminder system to use funds from the Vehicle Escrow Account to pay the remaining quarters as they come due. The following steps show how to use the Vehicle Escrow Account to pay for the transaction. In the Payment Type drop-down list, select Escrow Account Vehicle. Double-click the Payment # field. The Escrow Account Selector window displays. Highlight the correct account line (if the customer has more than one escrow account) and click the Select button. Pay and finalize the transaction. When each quarter is processed, the customer must be mailed the registration receipt with the updated registration expiration date. Once the late fees and penalties are paid for the year in the 4thquarter registration period, the Quarterly Payment MOVRS Policy & Procedures 8 Kansas Division of Vehicles

9 exception will need to be removed from the vehicle for the remainder of the registration year and the title given back to the customer, unless the title is an e-lien title. REMOVE THE QUARTERLY PAYMENT EXCEPTION Temporarily remove the Quarterly Payment exception on the vehicle by adding an End Date to the Exception Case Maintenance record. CUSTOMER HAS NOT PAID BY THE 11TH DAY OF THE MONTH DUE If the customer has not paid by the 11th day of the month due (excluding the weekend/holiday exception) the County Treasurer s office will need to take the following steps: Notify the Kansas Department of Revenue s Division of Vehicles. The point of contact is Teresa Akin at: teresa.akin@kdor.ks.gov. Complete a TR 151, Quarterly Pay Notice of Lien form, and file it with the Register of Deeds office. Mail a copy of that filing to the vehicle s owner(s) and/or lienholders, your local County Sheriff s office (as per Kansas statute) and the Division of Vehicles at KDOR. Retain the title, unless an e-title, at the county office. Mailing address for the Division of Vehicles: Attention Teresa Akin Kansas Department of Revenue, Division of Vehicles Central Office Operations, 11th floor 915 SW Harrison St. Topeka, Kansas The Division of Vehicles will process an order for seizure and send the original tax warrant papers to the local sheriff s office and a copy of the tax warrant papers to the County Treasurer s office to be kept with the title. KDOR will also add an exception to the vehicle record indicating a stop by Central Office Operations. When the tax lien has been paid off, the county will fill out the TR-152, Release of Tax Lien for Delinquent Quarterly Pay Registration form, and send to Teresa Akin in the Division of Vehicles at KDOR (at the above address). The tax warrant will then be released. MOVRS Policy & Procedures 9 Kansas Division of Vehicles

10 The county will end date the COO Administrative exception on the vehicle and return the title to the customer. SURRENDERING A NEGOTIABLE KANSAS TITLE IF THE VEHICLE DOES NOT HAVE A LIEN The owner must submit a negotiable Kansas title to the County Treasurer at the beginning of the registration period (first quarter). During the Registration Renewal transaction, the surrendered title must be received as a document and scanned. On the Documents tab, click the Add button in the lower right-hand corner. On the Document Description drop-down list, select Ownership Document. Check the Received column checkbox and scan the document according to your business process for scanning. Titles will no longer be mailed to KDOR for retention. The County Treasurer must retain the title in a secure location until the 4th quarter is paid. After the 4th quarter payment has been made and cleared, if the payment was not made in cash, the title will be returned to the customer. IF THE VEHICLE DOES HAVE A LIEN A copy of the previous registration or another document verifying the e-lien title status should be scanned with the transaction. During the Registration Renewal transaction, on the Documents tab, click the Add button in the lower righthand corner. On the Document Description drop-down list, select Ownership Document. Check the Received column checkbox and scan the document according to your business process for scanning. MOVRS Policy & Procedures 10 Kansas Division of Vehicles

11 IF A LIEN IS PAID OFF DURING THE PERIOD OF QUARTERLY REGISTRATION Temporarily remove the Quarterly Payment exception on the vehicle by adding an End Date to the Exception Case Maintenance record. Perform an Add/Release SI transaction to release the security interest holder from the vehicle. Add the 190 Quarterly Payment exception code back to the vehicle by adding a row and adding the exception as before. IMPORTANT: On the same day the lien release is processed: both Teresa Akin at teresa.akin@kdor.ks.gov and Hope Burns at hope.burns.@kdor.ks.gov IMMEDIATELY to notify the KDOR Division of Vehicles so the title can be pulled from the print batch and mailed to the County Treasurer to retain until the 4th quarter payment is made. Subject line should read: Lien Released on Quarterly Payment. This prevents the customer who still owes money through the quarterly registration program from receiving a clear title in the mail. QUARTERLY PAYMENT VEHICLE IS SOLD IF THE QUARTERLY PAYMENT CUSTOMER IS READY TO SELL THE VEHICLE The customer must endorse the title as the seller and provide the purchaser s name and address before the title can be released to the customer. The County Treasurer s office will complete a TR-86, Quarterly Pay Balance Cancellation and/or Refund form, and keep on file in the treasurer s office. MOVRS Policy & Procedures 11 Kansas Division of Vehicles