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 certain utility terrain vehicles (UTV’s) from motor vehicle sales tax. The tax exemption applies to UTV’s used for agricultural purposes by individuals with a farm use certificate issued by the assessor. The bill also defines utility terrain vehicles as motor vehicles.
     UTV’s have only been subject to motor vehicle tax since 2010. The previous sales tax exemption available to farmers was not addressed in 2010 legislation. According to an industry representative, the tax exemption would apply to no more than 500 vehicles.
     The estimated current average cost of UTV’s is around $8,500. At five percent tax, the revenue loss would be $212,500.

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 -212,500 -212,500 -212,500

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

    Revenue Loss:
     Approximate Purchase Price of UTV $ 8,500
     5% Sales Tax $ 425
     500 (designated Farm Use UTV’s) X $425 $ 212,500
     Estimated Revenue Loss $ 212,500



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