FISCAL NOTE

Date Requested: January 11, 2023
Time Requested: 10:05 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1627 Introduced HB2439
CBD Subject:


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


The stated purpose of this bill is to exempt from the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment. Based on our interpretation, the bill provides for an additional exemption to the 6 percent sales tax on the sales price of a motor vehicle. The exemption would only apply to all-terrain vehicles and utility terrain vehicles which receive a farm-use exemption certificate under W.Va. Code §17A-3-2. According to our interpretation, passage of this bill would have a minimal impact on State Road Fund revenue. Additional administrative costs incurred by the State Tax Department will be minimal. However, there may be additional administrative costs incurred by the Division of Motor Vehicles.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2023
Increase/Decrease
(use"-")
2024
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 0 0


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


Based on our interpretation, the bill provides for an additional exemption to the 6 percent sales tax on the sales price of a motor vehicle. The exemption would only apply to all-terrain vehicles and utility terrain vehicles which receive a farm-use exemption certificate under W.Va. Code §17A-3-2. According to our interpretation, passage of this bill would have a minimal impact on State Road Fund revenue. Additional administrative costs incurred by the State Tax Department will be minimal. However, there may be additional administrative costs incurred by the Division of Motor Vehicles.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov