FISCAL NOTE
Date Requested: January 31, 2023
Time Requested: 05:05 PM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3304 |
Introduced |
HB3165 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
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 modify certain vehicles exempt from payment of registration fees, by lowering the percentage of a service-connected disability required for exemption from 100 percent to 50 percent or greater. The bill also adds recipients of the Distinguished Service Cross, Navy Cross, or Air Force Cross, to the list of persons who may receive such exemption.
The Division would incur programming costs for the cash register of approximately $8,280. Based upon statistics from the Pew Research Center the Division expects an additional 12,450 additional disabled veterans plates will be needed. The average cost of the Disabled Veterans plate is approximately $5 more than the standard class A plate. Therefore, the agency will incur additional plate costs of $62,250 (12,450 plates X $5). Total first year current expense will be $70,530 ($62,250 + $8,280).
For future years it is assumed that the number of plates will remain constant with 5%, or 623 (12,450 X %5) of the drivers not renewing their plates, but the same number of new drivers acquiring the Disabled Veterans plate. Therefore, plate costs in future years would be $3,115 (623 X $5).
There are currently 55 active plates which are either a Distinguished Service Cross, Navy Cross, or Air Force Cross. These plates would no longer be charged the annual $50 registration fee producing lost revenue of $2,750 (55 X $50). The additional disabled veteran plates will produce lost revenue of $622,500 (12,450 X $50) annually. For a total annual revenue reduction of $625,250 ($2,750 + $622,500).
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
70,530 |
3,115 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
70,530 |
3,115 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-625,250 |
-625,250 |
Explanation of above estimates (including long-range effect):
FY 2024
$8,280 Cash Register Programming
12,450 Estimated New Disabled Veterans plates
$5 Price Differential per plate
$62,250 Additional Plate Cost
$70,530 Total Current Expense
55 Current "Cross" Plates
$50 Registration fee
$2,750 Revenue Reduction
12,450 Estimated New Disabled Veterans plates
$50 Registration fee
$622,500 Revenue Reduction
$625,250 Total Revenue Reduction
UPON FULL IMPLEMENTATION
623 Estimated New Disabled Veterans plates
$5 Price Differential per plate
$3,115 Additional Plate Cost
$3,115 Total Current Expense
55 Current "Cross" Plates
$50 Registration fee
$2,750 Revenue Reduction
12,450 Estimated New Disabled Veterans plates
$50 Registration fee
$622,500 Revenue Reduction
$625,250 Total Revenue Reduction
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: Lisa Nomar
Email Address: lisa.d.nomar@wv.gov