A study of improper motor vehicle registrations

144 Pages·1997·5.8 MB·English

by  Massachusetts. Office of the Inspector General

UMASS/AMHERST
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THE COMMONWEALTH OF MASSACHUSETTS
OFFICE OF THE INSPECTOR GENERAL
A Study of Improper
Motor Vehicle Registrations
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7 1997
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Robert A. Cerasoli
Inspector General
March 1997

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One Ashburton Place, Boston, MA 02108
ROBERT A CERASOLI JOHNW MCCORMACK
INSPECTOR GENERAL STATEOFFICEBUILDING
ROOM 1311
TEL [phone]
FAX [phone]
March 1997
His Excellency the Governor
The Honorable President of the Senate
The Honorable Speaker of the House of Representatives
The Honorable Chairman of the Senate Ways and Means Committee
The Honorable Chairman of the House Ways and Means Committee
The Honorable Chairman of the Senate Post Audit and Oversight Committee
The Honorable Chairman of the House Post Audit and Oversight Committee
The Directors of the Legislative Post Audit and Oversight Bureaus
The Secretary for Administration and Finance
Members of the General Court
Omnibus ad quos praesentes literae pervenerint, salutem.
I am today releasing a report, mandated by Section 31 1 of Chapter 38 of the Acts of
1 995, that addresses the problem of motor vehicles that are owned by Massachusetts
residents who improperly register their motor vehicles in another state or another city
or town to evade higher insurance premiums, registration and titling fees, and sales
and local motor vehicle excise taxes.
During the course of this review, investigators from this Office were able to
substantiate that most of the individuals whose motor vehicles were improperly
registered out of state, or in another city or town, had made statements of fact that

confirmed their residency in Massachusetts. The principal residence of individuals
was verified using information contained in public documents in which assertions were
made by the motor vehicle owner that established his principal residence in
Massachusetts. Most of these documents contained statements that were signed
under pains and penalties of perjury and are on-line and readily accessible by
computer.
My Office has found indications that more extensive tax evasion or fraud can occur
when individuals and businesses improperly register their motor vehicles out of state.
An individual may disavow Massachusetts residency and register a motor vehicle out
of state and at the same time receive a property tax exemption on property in
Massachusetts that the owner claims as his principal residence in order to qualify for
the abatement. Massachusetts businesses may short-change the State by
underreporting business information on tax returns and forms. The Commissioner of
Revenue warns income tax filers: "You cannot choose to make your home in one
place for the purposes of life and in another for tax purposes." That is clearly the
message of this report.
have concluded that the common goal of achieving proper registration of motor
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vehicles in the Commonwealth cannot be accomplished using the tools for
enforcement currently available to State and loca' police. Therefore, have filed
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legislation that will provide for a level playing field and curtail the recurring
opportunities for improper registration. This legislation will ensure that the
Commonwealth and its cities and towns collect the millions of dollars in tax revenues
due from these chronic cheaters. urge you to support this legislation that will
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establish well defined rules that will govern motor vehicle registration requirements.
These requirements to register a motor vehicle in Massachusetts will be directly linked
to the owner's own declarations and statements in which Massachusetts residency
is established. The bill also requires all motor vehicles operated on Massachusetts
roadways to have proof of liability insurance and that leased motor vehicle
registrations include the identity of the lessor and lessee. Those who are found guilty
of tax fraud associated with improper motor vehicle registrations will be required to
relinquish their professional licenses and certificates and pay stiff mandatory fines.
To get this program off the ground, have recommended that the Registrar of Motor
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Vehicles and the Commissioner of Revenue design and implement a three month
amnesty program to allow the scofflaws a brief period of time to comply with the
motor vehicle registration and tax laws of the Commonwealth.
The State Police units, the North Shore police departments, the Registry of Motor
Vehicles, the Department of Revenue, the local assessors in Massachusetts and New
Hampshire and the New Hampshire Department of Public Safety provided much
insight, cooperation and assistance in this investigative study and all were
exceptionally responsive to the needs of my staff.

would like to thank Fran Brown, First Assistant Inspector General and Nancy Gordon,
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Deputy Chief for Legislative and Public Policy; and Noreen Hazelton, Chief of the
Asset Management Division for conducting this investigative study, providing
recommendations, and writing this report.
Sincerely,
Robert A. Cerasoli
Inspector General
Digitized by the Internet Archive
2014
in
https://archive.org/details/studyofimpropermOOmass
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TABLE of CONTENTS
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Executive Summary.
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Background.
1
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Introduction. 4
Findings. 9
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Information Resources. 16
. . . . . . .
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Verifying Residency and Business Locations 20
Improper Out-of-State Regi.stra.tions.. ... 26
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North Shore Initiatives. 27
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State Police "Zero Tolerance" Unit 32
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Individuals with Questionable Registrations. 37
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Business Related Tax Issues. 43
Businesses in Essex County. ... 48
Current Efforts of the Registry of Motor Vehicles. 61
1-800-l-Pay-Tax ... 64
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Processing Motor Vehicle Offenses in the Courts. 67
Lawrence District Court. 69
Improper Registration in another Massachusetts Community. 75
.
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Uninsured Motorists fail to pay $210 Million/Premiums. 78
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Irresponsible Drivers. 80
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The Bounty Law. 84
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Registration in New Hampshire. 88
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Repair Plate Abuse - Update. 90
Conclusions and Recommendations. 95
Publication No 17885-120-5C-3/97-IGO,approvedby Philmore Anderson III. State Purchasing Agent
Printed on recycled paper