March 29, 2004

SGI Simplifies Vehicle Registration System

SGI is updating the vehicle registration system in Saskatchewan, making it more fair and balanced for all motorists. The changes to simplify the system will be phased in over the next year and a half and represent the first registration fee changes since 1993.

Effective Jan. 1, 2005, most light vehicles will be registered under the new Class LV, eliminating the five different registration classes that exist today for cars, pick up trucks, sport utility vehicles and vans. To prepare for that change, the seven different fee levels will be replaced with a flat $68 registration fee as of July 1, 2004.

Vans and sport utility vehicles currently registered in Class F will also be moved to the new class.

"The creation of Class LV makes an overly complicated system simpler for our customers to understand and for our motor licence issuers to administer," said Minister Responsible for SGI Maynard Sonntag. "Some vehicle owners will pay less under the new system and no one will experience an increase of more than $10 a year."

Registration fees for approximately 450,000 private vehicles in Classes PV, F, A, C and D will go up by $10 per year, approximately 5,200 vehicle fees will stay the same, while fees for the other 196,000 vehicles will decrease.

Registration fees are collected by SGI on behalf of the provincial government to help pay for many provincial expenditures, including road and highway maintenance. Because heavy vehicles can cause considerable damage on Saskatchewan highways, heavy vehicle registration fees will be re-balanced over the next year.

"The re-balancing of fees improves fairness so that those heavy vehicles which cause more damage on our roads pay higher registration fees," said Sonntag. "These initial adjustments set the stage for the move to one heavy commercial vehicle class."

Due to their growing use and wear on Saskatchewan roads, farm trailers over 4,600 kg (10,000 lbs) will no longer be exempt from registration fees as of July 1st, 2005. As a result, the gross weight of these farm trailers will be included in calculating the registration fee for the large trucks pulling these trailers.

Overall, registration fees are being re-balanced in the farm class. Fees will go up or down reflecting the road damage caused by a particular vehicle. For example, farm trucks that are five-axle and smaller will see increases ranging from $21 to $130. However, seven and eight-axle farm trucks will see fee reductions as high as 62 per cent.

Farmers will also have the option of minimizing the costs of new registration requirements by registering their trailers on a one-time basis with no insurance. The $32 one-time registration fee is consistent with Alberta’s $30 one-time farm trailer fee. Commercial trailers will also have the option of purchasing a one-time plate for $100.

SGI has worked hard to ensure these vehicle registration changes mean a simpler system that’s easier for motorists to understand and that fairly redistributes the fees vehicle owners pay. For media inquiries only, contact:

Julianne Jack
SGI Communications – Regina
(306) 775-6907

Fact Sheet
Vehicle Registration System Changes

Light Vehicles
Effective July 1, 2004

• A flat $68 registration fee will be introduced for most light vehicles resulting in a maximum annual increase of $10 and a decrease of $37 for individual vehicle owners.
• Registration fees for approximately 450,000 vehicles will go up by $10 per year, approximately 5,200 vehicle fees will stay the same, while fees for the other 196,000 vehicles will decrease.
• The flat $68 registration fee is the same as Alberta and cheaper than Manitoba.
• Motorcycle registration fees will remain at $50.
• The flat registration fee for light vehicles will generate an additional $1.47 million per year, on annual revenues of approximately $43 million in 2003, for the General Revenue Fund (GRF).

Effective Jan. 1, 2005

• The new Class LV will be implemented and consist of over 590,000 light vehicles (under 5,000 kg).
• All sport utility vehicles, pick up trucks (except those registered in Class F), cars and vans in Classes PV and F, and the commercial classes A, C and D will make up the new class.

Heavy Vehicles
Effective July 1st, 2004

• Implement fee increases of up to 5 per cent for a small number of Class A and D commercial heavy trucks.
• Implement registration fee adjustments ranging from 30 per cent increases to 3 per cent decreases for Class C commercial heavy trucks.

Effective Jan. 1st, 2005

• Collapse Class D into Class A as a first step to creating one heavy vehicle class

Effective July 1st, 2005

• Implement registration fee adjustments ranging from 25 per cent increases to 62 per cent decreases for Class F farm heavy trucks.
• Eliminate registration fee exemption for farm trailers over 4,600 kg.
• Include the gross weight of farm trailers over 4,600 kg in calculating the registration fee for the large trucks pulling these trailers.
• Establish a one-time farm trailer registration with a fee of $32 with no insurance coverage.
• Establish a one-time commercial trailer registration for semi-trailers with a fee of $100 with no insurance coverage.
• The heavy vehicle registration fee re-balancing will generate an additional $3 million per year, on annual revenues of approximately $39 million in 2003, for the General Revenue Fund (GRF).