FISCAL NOTE

Date Requested: February 19, 2019
Time Requested: 03:25 PM
Agency: Motor Vehicles, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
3346 Introduced SB649
CBD Subject: Motor Vehicles, Taxation


FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


The purpose of this bill is to exempt the sales tax on a motor vehicle titled in the name of a resident of this state if the person was not a resident of this state at the time the person acquired ownership of the vehicle and the person paid sales tax on the vehicle in another state but did not title it in the other state. The Division estimates this bill will apply to 100 vehicles per year. The Division further estimates that the average value of the vehicles will be $20,000, based on the average sales value of a used vehicle. This produces a total tax bases affected of $2,000,000 (100 x $20,000) and a reduction of revenue of $120,000 ($2,000,000 x 6%). Implementation of this legislation will be challenging for the following reasons: 1. The most definitive evidence that taxes have been paid on a vehicle is the existence of a title. 2. While the vehicle owner may be able to provide documentation that they paid tax in another state, the Division will not be able to determine if that individual subsequently received, or will receive, a refund of those taxes.



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 -120,000 -120,000


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


Sales Tax on Out of State Sales $20,000 Estimated Vehicle Value 100 Estimated number of Vehicles $2,000,000 Total Value - not taxed 6% Tax Rate $120,000 Total revenue reduction



Memorandum






    Person submitting Fiscal Note: Raeann Kriner
    Email Address: raeann.k.kriner@wv.gov