FISCAL NOTE

Date Requested: February 03, 2020 Time Requested: 02:34 PM

Agency: Motor Vehicles, WV Division of CBD Number: Version: Bill Number: Resolution Number: 2306 Introduced HB4407 CBD Subject: Actions, Suits and Liens

FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue

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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 issued titles for approximately 15,000 ATV/UTVs in fiscal year 2017. The Division estimates that 1% of these vehicles (15,000 X 1% = 150) 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 = $75,000).

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Fiscal Note Detail

Effect of Proposal	Fiscal Year
	2020 Increase/Decrease (use"-")	2021 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	-75,000	-75,000

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

Approximate ATV/UTV yearly 15,000 Estimated % Farm Use 1% Total Subject to Exemption 150 Average Tax per Vehicle $ 500 Estimated Revenue Reduction $75,000

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Memorandum

The current demand for technical expertise and support on the Division exceeds our current resource level. This bill will require additional technical expertise and support. Therefore, the Division needs to add an Information Systems Manager 1 position at an estimated annual cost of $79,500 (Salary and Benefits) and a Programmer Analyst 3 position at an estimated annual cost of $75,000 (Salary and Benefits).

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