FISCAL NOTE
Date Requested: March 11, 2021
Time Requested: 11:25 AM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1592 |
Introduced |
HB3061 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to exempt disabled veterans with any percentage of disability from the payment of registration fees under the provisions of this chapter.
There are approximately 30,000 armed forces veterans with less than a 100% disability. The Division estimates that all 30,000 will want to participate in the program with each veteran registering an average of 1.5 vehicles for a total of 45,000 (30,000 veterans X 1.5 vehicles per veteran). The Disabled veterans plate costs the Division $4.40 ($6.80 DV Plate - $2.40 class “A” plate). Total increase plate cost to the Division in the first year would be $198,000 (45,000 vehicles x $4.40 per plate). The Division anticipates the number of participants to remain consistent with 1,500 vehicles leaving the program annually and being replaced with 1,500 new vehicles. Therefore, after full implementation the Division expects increased annual plate costs of $6,600 (1,500 vehicles x $4.40).
The 45,000 vehicles taking advantage of the reduced fees will not be renewing at their current rate of $51.50 per year producing an annual reduction of revenue of $2,317,500 (45,000 vehicle x $51.50). For each new registration plate the Division collects a $10 one-time fee. Total projected one-time fee for year 1 would be $450,000 ($10 x 45,000 vehicles registered). The one-time fee would generate $15,000 ($10 x 1,500 vehicles) annually thereafter. Other fees associated with each plate are the $1 litter fee and the $0.50 insurance verification fee. These fees are collected for each registration year issued. The Disabled Veterans plate is issued for a period of ten years with seven years remaining in its current cycle. Anticipated revenue in the first year from these fees is $472,500 (($1 + $0.50) x 7 years x 45,000 vehicles). Anticipated revenue from these fees in subsequent years is $11,250 (($1 + $0.50) x 5 years(average) x 1,500 vehicles). Net reduction of revenue for the first year $1,395,000 ($2,317,500 - $450,000 - $472,500). Net reduction of revenue in subsequent years is $2,291,250 ($2,317,500 - $15,000 - $11,250).
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 |
198,000 |
6,600 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
198 |
6,600 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-1,395,000 |
-2,291,250 |
Explanation of above estimates (including long-range effect):
$6.80 Cost of Veterans Plate
$2.40 Cost of Class A Plate
$4.40 Increased Cost Per Plate
45,000 New Plate
$189,000 Total Current Expense
30,000 Honorable Discharged Veterans
1.5 Cars Per Veteran
45,000 Estimated Total Vehicles
($51.50) Per Item Revenue Reduction
($2,317,500) Revenue Reduction
45,000 Estimated Total Vehicles/Plates
$10 Plate Fee
$450,000 One-Time Plate Fee Generated
$1.50 Annual Litter and Ins. Fee
7 Years Remaining In 10 Yr. Cycle
$10.50
45,000 Estimated Total Vehicles/Plates
$472,500 Total Litter and Ins. Fee
($1,395,000) Net Revenue Change
$6.80 Cost of Veterans Plate
$2.40 Cost of Class A Plate
$4.40 Increased Cost Per Plate
1,500 New Plate
$6,600 Total Current Expense
30,000 Honorable Discharged Veterans
1.5 Cars Per Veteran
45,000 Estimated Total Vehicles
($51.50) Per Item Revenue Reduction
($2,317,500) Revenue Reduction
1,000 Honorable Discharged Veterans
1.5 Cars Per Veteran
1,500 Est. Of New Plates Sold Annually
$10 Plate Fee
$15,000 Revenue Generated
$1.50 Annual Litter and Ins. Fee
5 Years Remaining In 10 Yr. Cycle
$7.50
1,500 Est. Of New Plates Sold Annually
$11,250 Total Litter and Ins. Fee
($2,291,250) Net Revenue Change
Memorandum
Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov