The Michigan Department of State (MDOS) recently released an update to Chapter 3 of the Dealer Manual. References to Form TR-29 (Certification from the Heir to a Vehicle) have been replaced with Form TR-40.

The TR-40 (dated 01/2026) is required when processing a vehicle ownership transfer from a deceased individual to: the surviving spouse; the closest next-of-kin; or to a third party. This applies to vehicles not subject to a probated estate.

The TR-40 process now consists of three separate forms:

• TR-40a: Certification from the Heir to a Vehicle
• TR-40b: Certification of No Interest
• TR-40c: Certification of Ownership Transfer

Each part must be completed as applicable to properly document the title transfer.

Please update Chapter 3 in any printed copies of the Dealer Manual and inform all appropriate staff on the new forms and process.

The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) have just released the 2026 Fuel Economy Guide. The Guide provides detailed fuel economy estimates for model year 2026 light-duty vehicles, along with estimated annual fuel costs and other information for prospective car buyers. By law, dealers must display the Guide and provide copies to customers upon request. Dealers may choose to (1) print copies to have on hand or (2) provide access to the electronic version/website on a computer or electronic device in the display area. The regulations ensure that prospective car buyers have ready access to fuel economy information for current model year vehicles. Click here to view the DOE/EPA letter detailing how to make the Guide available to customers. 2026 Fuel Economy Guide Enhanced Electronic Access: The 2026 Fuel Economy Guide will be available in electronic format only. You can download the latest Fuel Economy Guide from the government’s fuel economy website at https://www.fueleconomy.gov/feg/dealers.shtml and print copies from the electronic file as needed. The online Guide will be updated periodically to include newly released vehicle models and current fuel cost estimates. Display Signage: Dealers can download and print a sign/poster to place in their display area directing customers to the Fuel Economy Guide (this is optional and not required by law).

 

Following is a brief overview of Michigan-specific business operations for the upcoming year. Please click the links provided for further information.

 

Sales Tax on the Difference.  Owners trading in a motor vehicle now receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $12,000. [FAQ]

Sales Tax and Out-of-State Buyers.  2026 guidance on Michigan sales tax due when a non-Michigan resident takes delivery in Michigan but will register in another state. [link]

EV Registration Fees. The Michigan Motor Fuel Tax Act increases the fuel tax, requiring an increase in the registration gas tax fees for PHEV and EVs. [MDOS bulletin]  Vehicles 8,000 lbs or less:

• Hybrid / PHEV surcharge: $113 in addition to vehicle registration fee ($53 increase)
• EV surcharge: $267 in addition to vehicle registration fee ($107 increase)
• Reminder – for alternative fueled vehicles, indicate fuel type on RD-108

MDOS Compliance Checklists

• Class A & B dealer checklist
• Repair facility checklist

Dealer Plates | Tabs. Previous-year tabs for dealer plates remain active through the last day of February (Feb. 28, 2026). MDOS continues to mail new tabs.

Recreation Passport. The passenger vehicle fee is now $15 for 1-year and $29 for 2-years. [link]

Doc Fee ~ no change. DIFS last reviewed this fee in 2025. The max. allowable of $280 will remain in place for 2026. DIFS will next review in 2027. [link]

State of Michigan Holidays. Please reference this link for a list of days that SOS branch offices will be closed in 2026.

Minimum Wage. The minimum wage in Michigan is now $13.73 per hour. [link]

Fuel Tax Changes. A 52.4 cents per gallon motor fuel tax rate is in effect, as part of transportation funding reform. [link]

Penny Phase Out. Michigan sales and use tax notice regarding rounding up or down to the nearest $0.05. [link]

 

If the dealer license on your wall still shows a December 2025 expiration date, we strongly encourage you to use the state’s online license lookup tool to check your license expiration, or log into your CARS portal to confirm the license status.

 

License look up: CHECK HERE

Navigate to: Business Services >> Dealer Services >> Search Dealer

 

I already submitted my renewal. Why has the expiration not updated?

If the state notes missing or incorrect information, a “hold” is placed on the renewal and a letter is mailed and emailed to the dealership. The license will not be renewed until corrections are made. Common reasons for this include:

• Lost, stolen, or missing plates must include a police report.
• The ACORD certificate of Liability Insurance is not completed properly.
• A license change submitted alongside the renewal may also delay processing.

The state will generally allow a grace period to correct errors and finalize the renewal — if the renewal was submitted before the deadline. If your renewal is still pending and you are unsure why, please reach out to Lexi Hall at Lhall@michiganada.org. (Include your dealership name and license #.)