Indiana News

BMV Announces Overcharges of About $29 Million

INDIANAPOLIS, Ind. (AP) – The Indiana Bureau of Motor Vehicles has announced about 180,000 people will be getting excise tax refunds because their vehicles were improperly classified during registration over the past decade, leading to a total overcharge of about $29 million.

BMV Commissioner Don Snemis says the agency will work the Indiana Department of Revenue to issue the refunds. He says people affected should receive a letter within a month.

The BMV has determined that some Hoosier’s vehicles were misclassified for excise tax purposes. As a result, those customers overpaid excise taxes when registering their vehicles. These misclassifications stretch back to 2004 when the BMV’s System Tracking and Record Support (STARS) computer system was implemented on a limited basis,” said Snemis. The STARS system was fully implemented in 2006. 


Under Indiana law, vehicles are placed in a tax classification based on value determined by using the price of the vehicle and applying an adjustment factor based on Consumer Price Index data related to increases in new automobile prices. In some circumstances, the BMV's computer system did not apply the adjustment factor, which caused some vehicles to be misclassified.</span>

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