Why is Failure to Transfer Title a Criminal Offense?

It is criminal because the legislature says it is criminal. They should lobby their legislators if they would like to see the law change.

On some level there is probably a logical reason for making this a criminal offense. What that might be can only be guessed. It could relate to the collection of taxes and registration, it could relate to stolen vehicles, it could relate to problems associated with abandoned vehicles or accidents involving uninsured motorists, who knows. When the legislature passes a law it is often done with the best of intentions when aimed at an isolated and limited fact pattern. Sometimes the application sweeps up people who have no intention to commit a crime but who have violated the law. In my opinion, when there is no inherent "wrongness" apparent in a behavior, those who are charged with violating the law are more inclined to complain about its application. That is why you as court employee face an irate citizen. It would be like outlawing jeans. Say the government got a tip that terrorists wear only jeans. The government could make it illegal to wear jeans but it would not be something any normal citizen would consider "wrong." I think you might agree that altering a trip permit should be a crime because that requires a conscious decision to break the law and you can probably attest to the fact that most trip permit violators don't come to the court and speak with righteous indignation about being charged with a crime. Maybe the police and prosecutor's could use a little more discretion on filing the failure to transfer title charge, it seems like it is usually an unwitting crime.

Ms. Grochmal is correct; it is the legislature that determines what conduct is to be classified as criminal.

That being said, I have found the most individuals charged with this crime may have the charged dismissed by appearing in court with proof that the title has been transferred.