FISCAL NOTE
Date Requested: February 14, 2023
Time Requested: 08:24 AM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2266 |
Introduced |
HB3377 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to eliminate the consumer sales and use tax on motor vehicle sales made by West Virginia residents in other states.
Because this bill incentivises residents to travel out of state to purchase a vehicle and the fact that no resident is more than two hours away from another state the Division estimates there will be at least a 70% reduction in revenue in the first year. Based upon the $290,233,900 tax collected in FY2022, this would produce a reduction of revenue of $203,163,730 ($290,233,900 X 70%). The Division further estimates that as the loss of sales forces dealers to go out of business thus decreasing the availability of vehicles in the state the percentage of lost revenue will increase to 90% or $261,210,510 ($290,233,900 X 90%).
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 |
0 |
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 |
-203,163,730 |
-261,210,510 |
Explanation of above estimates (including long-range effect):
FY2024
$ 290,233,900 Current Tax Collection
70.00% Estimated Reduction
$ 203,163,730 Revenue Reduction
UPON FULL IMPLEMENTATION
$ 290,233,900 Current Tax Collection
90.00% Estimated Reduction
$ 261,210,510 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: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov