Texas drivers will see their vehicle registration renewal fees increase beginning Jan. 1 as the Texas Department of Motor Vehicles board approved implementing a new $4.75 processing and handling fee June 27. Board members said the new fee will bring about increased transparency for taxpayers by displaying the true cost the government bears in providing registration services to the public, while will allow the entirety of the vehicle registration fee to be credited to the State Highway Fund. A Texan who registers in person at the county tax office—about 64 percent of vehicle owners—will now see their state payment increase from $51.75 to $55.50. Those who register online—about 18 percent of Texans—will see it drop from $54.75 to $54.50. Those who mail in their registration will see their payment increase from $52.75 to $55. Texans also pay fees for county roads and bridges that vary by county in addition to the state renewal fee. TxDMV had initially wanted a $5 processing and handling fee to cover its budget gap—estimated at $70 million in the biennium that starts in 2018. But the DMV found a few million dollars more in its budget, which Gov. Greg Abbott's office strongly encouraged be used to lower the fee. In a package update the TxDMV board said, "The TxDMV’s staff recommendation to lower the processing and handling fee to $4.75 aligns with Gov. Greg Abbott’s commitment to the fiscal responsibilities of state government. Additionally, the recommendation will minimize the financial impact of the fee on Texas drivers to the greatest extent possible, driving greater efficiency in registration services and providing sufficient funding for the department and counties to cover the costs associated with collecting registration." Since the rule was proposed on April 7, the agency received comments from tax assessor collectors, public officials, legislators, businesses, associations and individuals. Most of the comments opposed the setting of the processing and handling fee as it will reduce the amount of revenue the counties will receive from registration renewals. TxDMV’s proposal states the processing and handling fee would allow $50.75 of the fee to be dedicated to the State Highway Fund, which would result in an additional $47 million or more annually to the fund. In a May 20 letter to the Texas DMV board, elected officials whose districts include parts of Travis County wrote about their opposition to changes to the fee structure. The letter states Travis County would lose about $585,000 annually in fee revenues even though residents would be paying more to title and register their vehicles. “Additionally, the current proposal to restructure titling and registration fees—as well as reimbursement rates for tax office processing of such transactions—increases costs for vehicle owners while providing urban counties less funding to perform them,” the letter states. The letter states Travis County would have to hire 17 new positions at nearly $1 million per year. Elected officials from the Austin area who signed the letter include Rep. Donna Howard, Rep. Celia Israel, Rep. Elliott Naishtat, Sen. Kirk Watson and Rep. Paul Workman. Spokeswoman Connie Watson said Williamson County would lose an estimated $160,000 annually in revenue attributed to the changes in process and handling fees. She said the additional employees needed in Travis County pertains to rules regarding full-service deputies, who may accept registration and renewal applications. However, Williamson County does not have any full-service deputies. Additional reporting by Amy Denney and Caitlin Perrone