FISCAL NOTE
Date Requested: February 21, 2022
Time Requested: 01:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2864 |
Introduced |
SB671 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General 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 stated purpose of this bill is to modernize the law governing ride sharing services.
According to our interpretation, the bill proposes several amendments to W.Va. Code §17A-6F the Peer-to-Peer Car Sharing Program. Language subjecting the airport authorities to this article is removed and the definition of “car sharing program agreement” is amended to exclude “master rent agreement or rental agreement”. “Personal injury protection” is removed as an assumption of liability for peer-to-peer car sharing programs and the minimum coverage levels are changed from $750,000 to those set forth in §§17D-4-2 and 33-6-31. The Insurance Commissioner should evaluate the sections of the bill dealing with insurance coverage.
W.Va. Code §17A-6F-15(e) is amended so that the wording of the limitations and interpretation are changed from “No provision…may be interpreted to void…” to “No provision may be interpreted to require or void…” These limitations include ad valorem taxes, state income taxes, motor fuel tax, state business registration, and licensure of drivers. Subsection (e) Paragraph (6), which prohibited owners from asserting a direct use sales tax exemption, is removed. This presumably refers to the direct use in transportation exemption set forth in W. Va. Code §11-15-9(b)(2). The requirements to exert this exemption are set forth in code so the removal of the prohibition on asserting the exemption would not automatically qualify a taxpayer to the direct use exemption.
Per our interpretation, the change in the Consumers Sales Tax exemption would have minimal impact on General Revenue Fund collections.
Additional costs incurred by the State Tax Department would be $1,000 in FY2022.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill proposes several amendments to W.Va. Code §17A-6F the Peer-to-Peer Car Sharing Program. Language subjecting the airport authorities to this article is removed and the definition of “car sharing program agreement” is amended to exclude “master rent agreement or rental agreement”. “Personal injury protection” is removed as an assumption of liability for peer-to-peer car sharing programs and the minimum coverage levels are changed from $750,000 to those set forth in §§17D-4-2 and 33-6-31. The Insurance Commissioner should evaluate the sections of the bill dealing with insurance coverage.
W.Va. Code §17A-6F-15(e) is amended so that the wording of the limitations and interpretation are changed from “No provision…may be interpreted to void…” to “No provision may be interpreted to require or void…” These limitations include ad valorem taxes, state income taxes, motor fuel tax, state business registration, and licensure of drivers. Subsection (e) Paragraph (6), which prohibited owners from asserting a direct use sales tax exemption, is removed. This presumably refers to the direct use in transportation exemption set forth in W. Va. Code §11-15-9(b)(2). The requirements to exert this exemption are set forth in code so the removal of the prohibition on asserting the exemption would not automatically qualify a taxpayer to the direct use exemption.
Per our interpretation, the change in the Consumers Sales Tax exemption would have minimal impact on General Revenue Fund collections.
Additional costs incurred by the State Tax Department would be $1,000 in FY2022.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov