FISCAL NOTE

Date Requested: February 09, 2022
Time Requested: 03:05 PM
Agency: Motor Vehicles, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2394 Introduced HB4589
CBD Subject:


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 purpose of this bill is to repeal the section of the code that requires an additional fee for electric and hybrid 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