FISCAL NOTE
Date Requested: January 27, 2026
Time Requested: 10:40 AM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1813 |
Introduced |
HB4813 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense
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 23,000 ATV/UTVs in fiscal year 2025. The Division estimates that 10%, or 2,300(23,000 x 10%) of these vehicles would qualify for the farm use exemption. The Division collects approximately $500 for each vehicle. The total amount of revenue lost would be $1,150,000(2,300 x $500).
The Division will need to re-program the cash register system to not charge tax. It is estimated to require 15 hours of programming time at a rate of $125 per hour for a total cost of $1,875 (15 hours X $125 per hour). The cost for the Farm Use stickers will be $1,725(.75 per sticker X 2,300 stickers).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
3,600 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
3,600 |
1,725 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-1,150,000 |
-1,150,000 |
Explanation of above estimates (including long-range effect):
FY 2027
15 Hours of programming for cash register
$125 hourly rate
$1,875 Total
2,300 Decals
$0.75 per sticker
$1,725 Total
$3,600 Total Current Expense
Revenue
23,000 Approximated Applicable Vehicles Titled in FY 25
10.00% Estimated % farm use
2,300 Total Vehicles subject to Exemption
$500 Average Tax Collected per Vehicle
$2,300 Vehicles
$1,150,000 Total Estimated Revenue Reduction
UPON FULL IMPLEMENTATION
2,300 Decals
$0.75 per sticker
$1,725 Total
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov