FISCAL NOTE

Date Requested: February 19, 2021
Time Requested: 11:23 AM

2004	Introduced	HB2606
Agency:	Motor Vehicles, WV Division of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Motor Vehicles

FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue, Creates New Expense, Increases Existing Expenses

Fiscal Note Summary

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

The purpose of this bill is to exempt honorably discharged veteran or any branch of the armed services of the United States from the payment of registration fees under the provisions of this chapter, except for a special initial application fee of $10. There are approximately 144,000 citizens eligible for this program. The Division estimates that all 144,000 will take advantage of the reduced fee with an average of 1.5 vehicles per veteran for total vehicles registered of 216,000 (144,000 x 1.5). There are currently 4,500 veteran plates issued resulting in the expected issuance of 211,500 (216,000 – 4,500). The veteran plate has a greater cost ($5.80) than the standard class A plate ($2.40) giving a greater cost per plate of $3.40 ($5.80 - $2.40). This would increase the cost of material in the first year by $719,100 ($3.40 x 211,500). Additionally, programming costs would be as follows: Mainframe programming of $900 (10 hours at $90 dollars per hour) and Cash Register programming of $2,300 (20 hours at $115 per hour) for total programming costs of $3,200 ($2,300 + $900). This produces a total increased cost in the first year of $722,300 ($719,100 + $3,200). It is estimated that after full implementation there will be an average of 7,200 new plates issued each year at an additional cost of $24,480 (7,200 x $3.40). For each new plate issued there will be a $10.00 fee. This will generate $2,115,000 (211,500 plates X $10.00). For every registration, both new and renewed, the Division will not collect $51.50 (registration fee $50, Litter Fee $1, and $0.50 insurance fee). This will result in a loss of revenue of $11,124,000 (216,000 registrations x $51.50). These two items produce a net revenue reduction of $9,009,000 ($2,115,000 - $11,124,000). After full implementation it is estimated that the Division will issue 7,200 new plates per year for a total revenue of $72,000 (7,200 x $10.00) The Division estimates that the overall number of plates will remain constant producing an annual reduction of revenue of $11,124,000, as stated above. The net reduction of revenue after full implementation would be $11,052,000 ($72,000 - $11,124,000). This fiscal note is based upon the stated purpose of the legislation as stated in the Legislative Note. The Division does not believe the language in the bill will produce the desired results.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2021 Increase/Decrease (use"-")	2022 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	722,300	24,480
Personal Services	0	0	0
Current Expenses	0	722,300	24,480
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	-909,000	-11,052,000

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

$900 Mainframe Programming $2,300 Cash Register Programming 3,200 Total Programming $3.40 Increased Cost Per Plate 211,500 New Plate Holders $719,100 Total Increase Plate Cost 722,300 Total Current Expense 216,000 Estimated Total Vehicles -$51.50 Per Item Revenue Reduction -$11,124,000 Revenue Reduction $211,500 New Plate $10 Plate Fee $2,115,000 Revenue Generated -$9,009,000 Net Revenue Reduction $3.40 Increased Cost Per Plate 7,200 Estimated New Plate Holders $24,480.00 Current Expense 216,000 Estimated Total Vehicles -$51.50 Per Item Revenue Reduction -$11,124,000 Revenue Reduction 7,200 Estimated Annual New Plates Sold $10 Plate Fee $72,000 Revenue Generated -$11,052,000 Net Revenue Reduction

Memorandum

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