FISCAL NOTE

Date Requested: March 02, 2021
Time Requested: 12:58 PM
Agency: Motor Vehicles, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2384 Introduced HB2819
CBD Subject:


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 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 $115 per hour for a total cost of $1,725 (15 hours X $115 per hour). The Division issued titles for approximately 15,000 ATV/UTVs in fiscal year 2017. The Division estimates that 1%, or 150 (15,000 x 1%) 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 $75,000 (150 x $500).



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,725 0
Personal Services 0 0 0
Current Expenses 0 1,725 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):


15 Hours of programming for cash register $115 hourly rate $1,725 Total current expense 15,000 Approximated Applicable Vehicles Titled in FY 20 1.00% Estimated % farm use 150 Total Vehicles subject to Exemption $500 Average Tax Collected per Vehicle $75,000 Total estimated Revenue Reduction



Memorandum






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