(a) The owner of a motor vehicle, other than a commercial motor vehicle, that is required to be registered under this chapter may elect to register the motor vehicle permanently in lieu of registration under AS 28.10.108 if the vehicle is at least eight years old and the owner resides in the unorganized borough or in a municipality that elects, by passage of an appropriate ordinance, to allow the permanent registration of motor vehicles. The permanent registration expires when the owner transfers or assigns the owner's title or interest in the vehicle. A permanent registration may not be renewed. On receiving the proper application and fees, the department shall issue to the registered owner registration plates, tabs, and a permanent registration form.

(b) The fees for permanent registration must equal the fees that would be applicable if the motor vehicle were registered under AS 28.10.108, plus a permanent registration fee of $25. The motor vehicle registration tax for a permanently registered vehicle is the rate established for permanent motor vehicle registration under AS 28.10.431(j). If a municipality has not established a tax for a permanently registered motor vehicle, the biennial rate established in AS 28.10.431(b) or (j), if any, is levied upon the vehicle and is payable only once at the time a motor vehicle is permanently registered. Except as provided in AS 28.10.423(b), the owner of a permanently registered motor vehicle is not required to pay other registration fees or taxes under this chapter.