28-2356. Transfer of license plates to another vehicle; credit

A. Except as otherwise provided in this chapter, the owner of a vehicle for which the department provided license plates pursuant to section 28-2351 shall retain those license plates when the owner transfers the vehicle to another person.

B. The owner may apply for a credit that is posted to the owner's record or financial account of the unexpired portion of the vehicle license taxes, gross weight fees, commercial registration fees, special plate fees and motor carrier fees as prescribed in this section if both of the following apply:

1. The owner makes proper application to the director or to an authorized third party.

2. The owner agrees to allow the department to deduct a twelve dollar processing fee from the amount of the credit.

C. If the other vehicle is not of the same vehicle type as the vehicle for which the license plates were provided by the department pursuant to section 28-2351, the owner shall either surrender the license plates to the department or an authorized third party or submit an affidavit of license plate destruction as prescribed by the director. On surrender of the license plates or submission of an affidavit of license plate destruction, the department shall provide new license plates of the proper vehicle type to the owner.

D. The owner of a registered vehicle who transfers license plates to another vehicle or who claims a credit pursuant to this section is entitled to a credit for the unexpired portion of the fees and taxes paid as required by law in accordance with the following conditions:

1. The fees and taxes are prorated on a monthly basis beginning on the first day of the registration month following the date of acquisition of the vehicle.

2. The credit shall be an amount computed as follows:

(a) For each full month remaining in the registration cycle, the record or financial account credit shall be prorated using the assessed value of the vehicle for the year that the full month is in.

(b) If the vehicle is permanently registered, one-twenty-fourth for each full month after acquisition of the vehicle to the twenty-fourth month after the date of initial permanent registration of the vehicle.

E. If the owner of a registered vehicle transfers the vehicle to another person but does not apply for a credit within thirty days of the transfer as required by section 28-2058, the unexpired portion of the fees and taxes shall decrease pursuant to subsection E of this section until the owner applies for the credit.

F. An owner who transfers license plates to another vehicle pursuant to this section is subject to the same penalties for the use of the license plates on another vehicle or for improper use of the license plates as the owner would have been subject to for use of the license plates on the vehicle to which the plates were previously assigned.

G. The owner of a vehicle registered in this state is not entitled to a credit pursuant to this section if the vehicle is registered in another state unless the owner is applying the credit pursuant to this section to another vehicle the owner owns or acquires for registration in this state.