Ind. BMV Announces $29M In Refunds Coming To Overcharged Motorists

By Mike Perleberg (Indianapolis, Ind.) - Oops. An error which persisted for more than 10 years is resulting in about $29 million in refunds coming to thousands of Indiana vehicle owners. The Indiana Bureau of Motor Vehicles announced Tuesday that the refunds are the result of a mistake in which vehicles were improperly classified during registration, resulting in some vehicle owners being charged extra excise taxes. An estimated 180,000 individuals were affected. “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 Indiana BMV Commissioner Don Snemis. As explained by the BMV, under Indiana law, vehicles are placed in a tax classification based on value. This value is determined by using the price of the vehicle and applying an adjustment factor based upon Consumer Price Index data related to increases in new automobile prices. This data is entered into the BMV’s STARS system in order to automatically calculate excise taxes when vehicles are registered. In some circumstances, the STARS system did not apply the adjustment factor, which caused some vehicles to be misclassified. The BMV says affected customers will receive a letter in the mail within the next 30 days. A pre-printed claim form will be included. Meanwhile, the impact of the excise tax distributed to county and local governments will be mitigated by the state covering upfront costs of refunds to taxpayers and will recoup the overpayment by adjusting distributions to local governments over the next two years. According to the Snemis, Indiana Governor Mike Pence has authorized him to hire an independent consulting firm to perform an audit of the Indiana BMV’s processes, procedures and STARS system. This is not the first mix up that has been discovered within the Indiana BMV recently. Last year, a lawsuit was filed accusing the agency of overcharging and estimated 4.5 million drivers for their licenses between 2007 and 2013. The suit was settled for $30 million – about $3 to $15 for each affected motorist after the attorneys’ take – in July of 2013. RELATED STORIES: BMV Lawsuit Nets $6M For Attorneys Chinese? German? Spanish? Indiana BMV Introducing Driving Tests In 11 Languages