FISCAL NOTE
Date Requested: February 03, 2020 Time Requested: 02:34 PM |
Agency: |
Motor Vehicles, WV Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2306 |
Introduced |
HB4407 |
|
CBD Subject: |
Actions, Suits and Liens |
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|
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 from the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment.
The Division issued titles for approximately 15,000 ATV/UTVs in fiscal year 2017. The Division estimates that 1% of these vehicles (15,000 X 1% = 150) would qualify for the farm use exemption. The Division collects approximately $500 for each vehicle. The total amount of revenue lost would be $75,000 (150 X $500 = $75,000).
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2020 Increase/Decrease (use"-") |
2021 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 |
-75,000 |
-75,000 |
Explanation of above estimates (including long-range effect):
Approximate ATV/UTV yearly 15,000
Estimated % Farm Use 1%
Total Subject to Exemption 150
Average Tax per Vehicle $ 500
Estimated Revenue Reduction $75,000
Memorandum
The current demand for technical expertise and support on the Division exceeds our current resource level. This bill will require additional technical expertise and support. Therefore, the Division needs to add an Information Systems Manager 1 position at an estimated annual cost of $79,500 (Salary and Benefits) and a Programmer Analyst 3 position at an estimated annual cost of $75,000 (Salary and Benefits).
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov