FISCAL NOTE
Date Requested: March 16, 2021
Time Requested: 11:39 AM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2645 |
Introduced |
HB3195 |
|
|---|
| 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 repeal the section of the code that requires an additional fee for electric and hybrid vehicles.
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 re-program 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 231 Hydrogen/Natural gas powered vehicles collecting additional registration fees of $46,200 (231 vehicles X $200 fee), 25,249 hybrid vehicles collecting additional registration fees of $2,524,900 (25,249 vehicles X $100 fee), and 834 electric vehicles collecting additional registration fees of $166,800 (834 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 $2,737,900 ($46,200 + $2,524,900 + $166,800).
Division records indicate the number of these vehicles approximately doubled from FY20 to FY21. If this trend continues the anticipated revenue reduction for the year after implementation would be $5,475,800.
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.
Additionally, we are currently preparing for the final General Obligation bond sale. A substantial decrease to our revenue could result in a lower bond rating and have a negative impact on our rates.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
20,400 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
20,400 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-2,737,900 |
-5,475,800 |
Explanation of above estimates (including long-range effect):
$6,900 Cash Register Programming
$13,500 Mainframe programming
$20,400 Total Current Expense
$46,200 Natural gas
$2,524,900 Hybrid
$166,800 Electric
$2,737,900 Total Reduction of Revenue
$92,400 Natural gas
$5,049,800 Hybrid
$333,600 Electric
$5,475,800 Total Reduction of Revenue
Memorandum
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov