Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The purpose of this bill is to exempt from the sales and use tax special equipment installed in a motor vehicle for the use of a person with physical disabilities and to exclude the value of the equipment when determining the value of the vehicle for the imposition of the tax on the privilege of affecting the certification of the title of the vehicle.
     The Division of Motor Vehicles currently charges the 5% privilege tax on special equipment for persons with physical disabilities if the equipment is installed at the time the vehicle is purchased. If the equipment is charged after the vehicle is purchased, the owner will pay sales tax.
     Although records are not kept of titles issued for vehicles with special equipment, Division of Rehabilitation personnel estimate that approximately 150 titles are issued each year for vehicles with special equipment. Industry representatives have provided an average figure of $7,500 for the value of the special equipment. Based on these figures, the loss of the 5% privilege tax would be $56,250.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues -56,250 -56,250 -56,250

Explanation of above estimates (including long-range effect):

    Privilege Tax Loss
     Number of Vehicles Titled
     w/Specialized Equipment Per Year 150
     Estimated Value of Special Equipment $ 7,500
     Privilege Tax 5%
     Total Estimated Privilege Tax Lost Per Year $ 56,250



    Person submitting Fiscal Note: Jerry L. Conrad
    Email Address: