FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:27 PM |
| Agency: |
Motor Vehicles, WV Division of |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1374 |
Introduced |
HB2211 |
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| CBD Subject: |
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FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense, 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 honorably discharged veterans of any branch of the armed services of the United States from the payment of registration fees under the provisions of this chapter, except for a special initial application fee of $10.
There are approximately 144,000 citizens eligible for this program. The Division estimates that all 144,000 will take advantage of the reduced fee with an average of 1.5 vehicles per veteran for total vehicles registered of 216,000 (144,000 x 1.5). There are currently 4,500 veteran plates issued resulting in the expected issuance of 211,500 (216,000 – 4,500). The veteran plate has a greater cost ($6.05) than the standard class A plate ($2.95) giving a greater cost per plate of $3.10 ($6.05 - $2.95). This would increase the cost of material in the first year by $655,650 ($3.10 x 211,500)
Additionally, there would be programming costs for the Cash Register programming of $2,300 (20 hours at $115 per hour).
This produces a total increased cost in the first year of $722,300 ($719,000 + $3,200)
It is estimated that after full implementation there will be an average of 7,200 new plates issued each year at an additional cost of $24,480 (7,200 x $3.40).
For each new plate issued there will be a $10.00 fee. This will generate $2,115,000 (211,500 plates X $10.00). For every registration, both new and renewed, the Division will not collect $51.50 (registration fee $50, Litter Fee $1, and $0.50 insurance fee). This will result in a loss of revenue of $11,124,000 (216,000 registrations x $51.50). These two items produce a net revenue reduction of $9,009,000 ($2,115,000 - $11,124,000).
After full implementation it is estimated that the Division will 7,200 new plates per year for a total revenue of $72,000 (7,200 x $10.00) The Division estimates that the overall number of plates will remain constant producing a reduction of revenue of $11,124,000, as stated above. The net reduction of revenue after full implementation would be $11,052,000 ($72,000 - $11,124,000).
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 |
657,950 |
22,320 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
657,950 |
22,320 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-9,009,000 |
-11,052,000 |
Explanation of above estimates (including long-range effect):
$2,300
Cash register programming
$3.10
Increased cost per plate
211,500
New Plate
$655,650
Total Increase plate cost
$657,950
Total Expense
216,000
Estimated total vehicles
-$51.50
per item revenue reduction
-$11,124,000
Revenue Reduction
$211,500
New Plate
$10
Plate fee
$2,115,000
revenue generated
-$9,009,000
Net revenue change
$3.10
Increased cost per plate
7,200
New Plate
$22,320
Total Increase plate cost
$22,320
Total Expense
216,000
estimated total vehicles
-$51.50
per item revenue reduction
-$11,124,000
Revenue Reduction
7,200
Est. of new plates sold annually
$10
Plate fee
$72,000
revenue generated
-$11,052,000
Net revenue change
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