Credit Transfer
Credit Transfers may be used in registration activities. Currently
some registration fees are credited to the owner on the sale or
relinquishment of a vehicle, when the vehicle’s registration
period has not yet expired.
House Bill 19-1138 adjusts which fees are creditable and allows
for registration credits to be transferable to the buyer of the
vehicle. The credit stays with the owner or with the vehicle.
What is a credit transfer?
A Credit Transfer occurs when an unexpired registration has a remaining credit that is being
applied to a different registration.
How are credit transfers determined?
When a credit transfer is applied during a transaction, DRIVES
will calculate the amount of the credit being applied to the
individual fees and taxes behind the scenes. The credit is
derived from the original transaction and comes out of the
appropriate buckets (i.e., SOT, base fees, etc.).
Changes to Credit Transfers
- The credit transfer is only generated when the total sum of the remaining specific ownership tax (SOT) and the registration fee credits are $10.01 or higher.
- Proration of credit is only for FULL months left in the registration period.
o Example: If the customer transfers the credit on 10/1, they do not get credit for October. The credit will be assessed for the remainder of the registration
period.
- Credits cannot be applied from material fees; specialty plate donations or Clerk Hire fees.
- If a seller’s credit is to be used by a buyer, a DR 2444 Statement of Fact is required by the seller.
- IRP Colorado fees will be transferable to another IRP account or to a Non-IRP vehicle once programming is completed.
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