FISCAL NOTE

Date Requested: May 16, 2017
Time Requested: 01:03 PM
Agency: Motor Vehicles, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
4020 Introduced SB1006
CBD Subject: Governor -- Bills Requested By


FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to increase the funding for the State Road Fund. The bill increases Division of Motor Vehicles administrative fees and motor fuel excise taxes, increase rate of consumers sales and service tax on sales of motor vehicles, increases the minimum average wholesale price of motor fuels for purposes of the five percent variable fuel tax on a certain date, and increases administrative DMV fees every five years on September 1 based on the US Department of Labor, Bureau of Labor Statistics most current Consumer Price Index, imposing annual registration fee for certain alternative fuel vehicles and specified effective dates. • Increase the fee for Certification of Records from $1 to $1.50 per record. The Division produces approximately 1,500 certified records each fiscal year. Increasing the fee will increase revenue to be deposited into the State Road Fund by $7,500. • Increase the fee for vehicle records from $1 to $1.50 per record. The Division produces approximately 5,000 vehicle records each fiscal year. Increasing the fee will increase revenue deposited into the State Road Fund by $2,500. • Increase title document fees from $5 to $10.00. The Division generates approximately 605,198 titles (instant print titles included) each year. Increasing the fee will increase revenue deposited into the State Road Fund by $3,025,990. • Increase the vehicle registration transfer fee from $5 to $10.00. The Division issues approximately 188,673 transfers each year. Increasing the fee will increase revenue deposited into the State Road Fund by $943,365. • Increase the fee for salvage and cosmetic total loss vehicle titles from $15 to $22.50. The Division issues approximately 25,034 salvage vehicle titles each year. Increasing the fee will increase the revenue deposited into the State Road Fund by $187,755. • Increase the fee for reconstructed vehicle titles from $5 to $10. The Division issues approximately 14,777 reconstructed vehicle titles each year. Increasing the fee will increase the revenue deposited into the State Road Fund by $73,885. • Increase the fee to add or remove a lien from $5 to $10. The Division processes approximately 371,375 liens each year. Increasing this fee will increase the revenue deposited into the State Road Fund by $1,856,875. • Increase the registration fee for class ‘A’ passenger vehicles from $28.50 to $50. The Division renews approximately 1,316,489 of these Class A registrations each year. Increasing this fee will increase revenue deposited into the State Road Fund by $28,304,514. • Increase the duplicate registrations, license plates, and decals fee from $5 to $10. The Division issues approximately 57,710 duplicate registrations or plates each year. Increasing the fee will increase the revenue deposited into the State Road Fund by $288,550. • Increase title duplicate fees from $5 to $10. The Division generates approximately 39,475 duplicate titles each year. Increasing the fee will increase revenue deposited into the State Road Fund by $197,375. • Increase the fee for identification cards from $2.50 to $5 per year. Each year the Division issues approximately 18,747 identification cards. Increasing the fee will generate an additional $234,338 per year deposited into the State Road Fund. • Increase the fee for taking the knowledge test for a driver’s license from $5 to $7.50 per attempt. Each year the Division issues 91,359 tests. Increasing the fee will generate an additional $228,398. • Increase the fee for taking the skills test for a driver’s license from $5 to $7.50 per attempt. Each year the Division issues 26,874 tests. Increasing the fee will generate an additional $67,185. • Increase the fee for instruction permits and level 2 driver’s license from $5 to $7.50. Each year the Division issues approximately 51,407 instruction permits and licenses. Increasing the fee will generate an additional $128,518. • Increase the fee for a Class ‘E’ or standard driver’s license and level 3 driver’s license from $2.50 to $5 per year. Each year the Division issues approximately 261,449 licenses per year. Increasing the fee will generate an additional $3,268,113. • Increase the fee for a duplicate driver’s license from $5 to $7.50. Each year the Division issues approximately 80,135 duplicate driver’s licenses. Increasing the fee will increase the revenue deposited into the State Road Fund by $200,338. • Increase the fee for a driving record from $5 to $7.50. The Division issues approximately 494,962 driving records each year. Increasing the fee will increase revenue deposited into the State Road Fund by $1,237,405. • Increase the docket fee for a hearing request from $10 to $15. The Division issues approximately 2,000 driving records each year. Increasing the fee will increase revenue deposited into the DMV Fees Fund by $10,000. • Increase the registration fee for class ‘A’ passenger vehicles using hydrogen, and natural gas from $28.50 to $200. The Division renews approximately 88 of these Class A registrations each year. Increasing this fee will increase revenue deposited into the State Road Fund by $15,092. • Increase the registration fee for class ‘A’ passenger vehicles using combined electric and petrochemical fuel from $28.50 to $100. The Division renews approximately 2014 of these Class A registrations each year. Increasing this fee will increase revenue deposited into the State Road Fund by $144,001. • Increase the vehicle sales tax on vehicles purchased on or after July 1, 2017 from 5% to 6%. Based on the 2016 revenue increasing this fee generate an additional $41,245,449.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 81,667,143 81,667,123 81,667,123


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


Documents Quantity Increase Total Certification of Record 15,000 $0.50 $7,500 Registration Information Request 5,000 $0.50 $2,500 Title Fee 605,198 $5.00 $3,025,990 Transfer Fee 188,673 $5.00 $943,365 Cosmetic Total Loss and Salvage Certificate 25,034 $7.50 $187,755 Branded Titles 14,777 $5.00 $73,885 Lien Record/Release Fee 371,375 $5.00 $1,856,875 Class A Registrations 1,316,489 $21.50 $28,304,514 Duplicate Registrations and Plates 57,710 $5.00 $288,550 Duplicate Titles 39,475 $5.00 $197,375 ID Cards (per year) 18,747 $2.50 $234,338 Knowledge Test (per attempt) 91,359 $2.50 $228,398 Road Skills Test (per attempt) 26,874 $2.50 $67,185 Level 2 GDL and Instruction Permits 51,407 $2.50 $128,518 Class E Driver's License and Level 3 GDL (per year) 261,449 $2.50 $3,268,113 Duplicate Driver's License or Permits 80,135 $2.50 $200,338 Docket Fee 2,000 $5.00 $10,000 Certified Driving Record 494,962 $2.50 $1,237,405 Hydrogen and Natural Gas Vehicles 88 $171.50 $15,092 Combined Electric and Petrochemical Vehicles 2014 $71.50 $144,001 Vehicle Sales Tax Rate from 5% to 6% $41,245,449 Grand Total $81,667,143



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