FISCAL NOTE

Date Requested: January 15, 2019
Time Requested: 02:57 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1448 Introduced HB2398
CBD Subject: Taxation


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


The stated purpose of this bill is to exempt the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment. The passage of this bill would add an additional exemption to the 6 percent Motor Vehicle Sales Tax. The exemption would only apply to all terrain vehicles and utility terrain vehicles which receive a farm use exemption certificate under W.Va. §Code 17A-3-2. Per our interpretation, passage of the bill will have a minimal impact on State Road Fund revenue. There will be no additional administrative costs incurred by the State Tax Department. However, there may be additional administrative costs incurred by the Division of Motor Vehicles.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
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 0 0 0


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


The passage of this bill would add an additional exemption to the 6 percent Motor Vehicle Tax Sales Tax. The exemption would only apply to all-terrain vehicles and utility terrain vehicles which receive a farm-use exemption certificate under W.Va. Code §17A-3-2. Per our interpretation, passage of this bill would have a minimal impact on the State Road Fund revenue. There will be no additional administrative costs incurred by the State Tax Department. However, there may be additional administrative costs incurred by the Division of Motor Vehicles.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov