FISCAL NOTE
Date Requested: January 12, 2022 Time Requested: 03:52 PM |
Agency: |
Motor Vehicles, WV Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1110 |
Introduced |
SB19 |
|
CBD Subject: |
|
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|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill repeals law relating to additional registration fees for alternative fuel vehicles.
The Division would incur costs to reprogram the mainframe computer system of $13,500 and costs to reprogram the cash register system of $6,900. Total current expense $20,400 ($13,500 + $6,900).
The bill removes the additional registration fee for alternative fuel vehicles as follow:
Fuel Type Amount
Hydrogen or Natural Gas $200
Combination of Electricity and Petrochemical (Hybrid) $100
Electricity $200
The Division currently has the following alternative fuel vehicle registrations. There are 157 Hydrogen/Natural gas powered vehicles collecting additional registration fees of $31,400 (157 vehicles X $200 fee), 25,882 hybrid vehicles collecting additional registration fees of $2,588,200 (25,882 vehicles X $100 fee), and 1,239 electric vehicles collecting additional registration fees of $247,800 (1,239 vehicles X $200 fee). Based upon current registrations the Division can expect a total reduction in revenue from the elimination of the additional registration fee of $2,867,400 ($31,400 + $2,588,200 + $247,800).
Based upon the average growth rate from FY20 to FY22 the Division estimates a FY24 revenue reduction of $5,034,900. This number will continue to increase as we continue to move towards alternative fueled vehicles.
The DMV fees collected above are deposited into the State Road Fund. Our first obligation is to meet our debt service payments and then our fixed costs. Any decrease to our revenue would impact the amount of remaining dollars available which can be used for, matching funds for federally eligible road construction projects, repair and maintenance of existing roads, purchase of equipment, etc.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2022 Increase/Decrease (use"-") |
2023 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
20,400 |
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 |
-2,737,900 |
-5,034,755 |
Explanation of above estimates (including long-range effect):
$6,900 Cash Register Programming
$13,500 Mainframe Programming
$20,400 Total Current Expense
$31,400 Natural Gas
$2,588,200 Hybrid
$247,800 Electric
$2,867,400 Total Reduction of Revenue
$43,800 Natural Gas
$4,378,300 Hybrid
$612,800 Electric
$5,034,900 Total Reduction of Revenue
Memorandum
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov