Vehicle Industry Registration Procedures Manual
Chapter 3 Collection and Payment Of Fees and Penalties
3.080 Waiver of Fees and/or Penalties (CVC §9562)
The conditions under which DMV is authorized to waive unpaid registration fees and/or penalties due are very specific.
- Penalties may be waived upon payment of the registration fees due when a transferee (including a dealer) applies for transfer and it is determined that the registration penalties accrued prior to the transferee’s date of purchase and the transferee was not aware that the registration fees for the current or prior registration years were unpaid and due (CVC §9562(a)).
- Fees and penalties may be waived for any registration year when a transferee (including a dealer) applies for transfer and it is determined that the registration fees became due prior to the transferee’s date of purchase and the transferee was not aware that the fees were unpaid and due if the license plate assigned to the vehicle displays a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (CVC §9562(c)).
- The license plate assigned to the vehicle must display a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (CVC §9562(c)).
- A Statement of Facts (REG 256) form stating that the transferee was not aware the fees were unpaid and due and indicating the sticker number on the license plate must be submitted with the application.
- Penalties may be waived on an application for registration upon payment of the fees due when the manager or his/her designee determines that circumstances caused the penalties to accrue through no fault or intent of the owner (CVC §9562(b)).
- Fees and penalties may be waived only when the customer (including a dealer) has a current validation sticker on the license plate which matches the year for which fees are believed to have been paid and the registration fees became due
prior to the customer’s purchase/transfer date.
- The transfer fee and any other fees due must be paid. If a current validation sticker is not displayed on the license plate, all registration fees due must be paid and only the penalties may be waived.
- A Statement of Facts(REG 256) form stating the sticker number on the license plate and that the applicant/dealer was not aware of any unpaid fees and penalties must be submitted with the application.
Waiver of Penalties on Vehicles Sold at Wholesale Auction (CVC §9561.5)
DMV shall waive any penalties due for late payment of registration renewal fees on a vehicle if all of the following criteria are met:
- The vehicle is sold through a dealer conducting a wholesale motor vehicle auction as provided in CVC §4456(b).
- Immediately prior to the sale the vehicle was registered as a leased vehicle.
- Delivery of the vehicle to the dealer conducting the wholesale motor vehicle auction is not later than 25 days after the termination of the lease.
- The date of termination of the lease and the date of delivery to the auction is reported on the application for registration or transfer.
- This may be done on a REG 256 submitted with the application.
Stolen or Embezzled Vehicles (CVC §4605; R&TC §10858)
Fees or penalties do not accrue as a result of operation of a stolen/embezzled vehicle.
DMV may waive the renewal fees and penalties as follows:
- When the stolen or embezzled vehicle is subsequently recovered by the owner and the vehicle was not operated between the date the registration expired and the theft/embezzlement date.
- The current renewal fees become due upon return of the stolen/embezzled vehicle to the owner’s possession and those fees or a PNO must be filed within 20 days of that date.
- A Miscellaneous Certifications (REG 256A) form must be submitted with the application.
- When an application for “title only” of an unrecovered stolen or embezzled new (unregistered) vehicle is presented.
- When an application for a “transfer only” of an unrecovered stolen or embezzled used vehicle is presented.
Deployed Military (CVC §9560)
- Penalties only shall be waived for late renewal for any period during which the registered owner was deployed to a location outside California. Deployment does not include:
- Temporary duty for the sole purpose of training or processing.
- A permanent change of duty station.
- To qualify for deployed military renewal penalty waivers, the applicant must submit:
- An application for registration renewal with the appropriate fees within 60 days after termination of deployment.
- Proof of temporary military duty during a period when a Presidential Executive Order specifies the United States is engaged in combat or homeland defense and be a member of the armed forces, armed forces reserve, or the National Guard who has been called to active duty or active service.
- A Statement of Facts (REG 256) form stating he/she is a member of the armed forces, armed forces reserve, or the National Guard and the termination date of his/her deployment.
- Deployment does not include temporary duty for the sole purpose of training or processing or a permanent change of station.
Note: Only penalties incurred during deployment may be waived.