28-2356

28-2356. Transfer of license plates to another
vehicle; credit; refund

A. Except as otherwise provided in this chapter, the owner of a vehicle for which
the department provided license plates pursuant to section 28-2351 shall retain those
license plates when the owner transfers the vehicle to another person.

B. The owner may apply for a refund or a credit of the unexpired portion of the
fees and taxes as prescribed in this section if both of the following apply:

1. The owner makes proper application to the director or to an authorized third
party pursuant to chapter 13 of this title.

2. The owner agrees to allow the department to deduct a twelve dollar processing
fee from the amount of the refund or credit.

C. If the owner applies for a credit as prescribed in this section, the department
may assign the license plates retained pursuant to subsection A of this section to
another vehicle that belongs to the owner if all of the following apply:

1. The other vehicle is of the same vehicle type.

2. The owner is applying the available credit for the fees and taxes to one other
vehicle the owner owns or acquires.

3. If the available credit exceeds the amount required to pay the fees and taxes,
the department shall issue a refund for the remaining amount of credit as prescribed in
this section. The department shall not charge an additional twelve dollar fee pursuant to
subsection B of this section for issuing a refund under this paragraph.

4. If the vehicle license tax, gross weight fees, commercial registration fees,
special plate fees and motor carrier fees are more than the similar fees and taxes
required to register the vehicle to which the license plates were previously assigned,
the owner pays any additional fees and taxes required after subtracting any credit
allowed under this section.

D. If the other vehicle is not of the same vehicle type as the vehicle for which
the license plates were provided by the department pursuant to section 28-2351, the owner
shall either surrender the license plates to the department or an authorized third party
or submit an affidavit of license plate destruction as prescribed by the director. On
surrender of the license plates or submission of an affidavit of license plate
destruction, the department shall provide new license plates of the proper vehicle type
to the owner and credit the owner with an amount equal to the unexpended portion of the
fees and taxes originally paid by the owner for registration and license plates toward
fees and taxes charged for the registration and license plates of the appropriate new
vehicle type.

E. The owner of a registered vehicle who transfers license plates to another
vehicle or who claims a refund pursuant to this section is entitled to a credit or a
refund for the unexpired portion of the fees and taxes paid as required by law in
accordance with the following conditions:

1. The fees and taxes are prorated on a monthly basis beginning on the first day of
the registration month following the date of acquisition of the vehicle.

2. The credit or refund shall be an amount computed as follows:

(a) If the vehicle is registered on an annual basis, one-twelfth for each full
month of the registration period not yet expired.

(b) If the vehicle is registered on a biennial basis pursuant to section 28-2159,
one-twenty-fourth for each full month of the registration period not yet expired.

(c) If the vehicle is permanently registered, one-twenty-fourth for each full month
after acquisition of the vehicle to the twenty-fourth month after the date of initial
permanent registration of the vehicle.

F. If the owner of a registered vehicle transfers the vehicle to another person but
does not transfer the license plates to another vehicle, surrender the license plates to
the department or an authorized third party or submit an affidavit of license plate
destruction within thirty days of the transfer as required by section 28-2058, the
unexpired portion of the fees and taxes shall decrement pursuant to subsection D of this
section until the owner either surrenders the license plates to the department or an
authorized third party or submits an affidavit of license plate destruction.

G. Except as provided in subsection C of this section, an owner of a registered
vehicle who transfers the vehicle to another person and either surrenders the license
plates to the department or an authorized third party or submits an affidavit of license
plate destruction may apply to the department for a refund of the unexpired portion of
the fees and taxes paid if the owner does not claim a credit pursuant to this section and
the refundable amount calculated pursuant to subsection D of this section exceeds the
twelve dollar fee prescribed in subsection B of this section. If the department
determines that the owner is entitled to a refund, the department shall send the refund
by first class mail to the address provided by the owner claiming the refund or, if no
address is provided, to the latest address listed on the department's records for the
owner claiming the refund.

H. An owner who transfers license plates to another vehicle pursuant to this
section is subject to the same penalties for the use of the license plates on another
vehicle or for improper use of the license plates as the owner would have been subject to
for use of the license plates on the vehicle to which the plates were previously
assigned.

I. The owner of a vehicle registered in this state is not entitled to a credit or a
refund pursuant to this section if the vehicle is registered in another state unless the
owner is applying the credit pursuant to this section to another vehicle the owner owns
or acquires for registration in this state.

J. The director shall adopt rules necessary to administer this section.