“The BMV has determined that some Hoosiers’ vehicles were misclassified for excise tax purposes,” said Don Snemis , commissioner of the Indiana BMV , in a BMV press release. “As a result, those customers overpaid excise taxes when registering their vehicles.”
The BMV will be working with the Indiana Department of Revenue to issue excise tax refunds to customers who are entitled to them, according to the release.
In Indiana, vehicles are classified by determining the value of the automobile and then entering that value into a database known as the BMV System Tracking and Record Support system.
The value of a vehicle is determined by combining the price of the car and an “adjustment factor” based on Consumer Price Index data, the release said.
The misclassification of vehicles, Snemis explained in the release, is a mishap that dates back to 2004 “when the BMV’s System Tracking and Record Support computer system was implemented on a limited basis,” he said.
The system wasn’t completely up and running until 2006.
Since that year, the BMV has collected about $3.4 billion in excise taxes, according to the release.
The total damage done in this instance — about $29 million, plus interest — is thought to have affected about 180,000 people.
The state also plans to refund all interest, the release said.
When asked about the numbers in regard to Bloomington, Indiana BMV Executive Director of Communications Josh Gillespie said little is known so far about different regions of the state.
“We’re still putting together all the data,” he said. “We don’t have localized data yet.”
All misclassified vehicles will be reclassified with correct data, Snemis said in the release.
“Anyone who overpaid will be notified by mail and provided a pre-printed claim form, per Indiana law, to obtain a refund with interest,” he said. “Hoosiers affected by this miscalculation can expect to receive a letter within about 30 days.”
Gillespie also underlined the 30-day time frame, saying once this information disseminates there will be more localized data ?available.
Gov. Mike Pence has authorized Snemis to hire a consulting firm with the goal of auditing the BMV’s “processes, procedures and STARS system,” according to the release.
