FISCAL NOTE
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to change the name of the tax imposed at the time a motor vehicle is titled from a privilege tax to a sales tax.
The bill transfers the administration of the tax on motor vehicles to Chapter 11 Sales Tax Section of the State Code.
This fiscal note assumes exemptions to the tax on vehicles are limited to those exemptions currently provided for in 17A-3-4 and that none of the exemptions particular to sales tax apply to the tax imposed on the titling of vehicles except as noted in the following paragraph.
Provided in the bill is a tax exemption for new residents moving to West Virginia and transferring a vehicle they had previously titled in another state. The bill requires that effective July 1, 2008, in order for the new resident to take advantage of this exemption they must establish residency and then title their vehicle within 30 days.
This bill also requires the Commissioner of Motor Vehicles to establish an amnesty period of three months after July 1, 2007, to allow any resident who has a vehicle not titled in this state to title their vehicle without penalty.
The Division originally estimated the loss of revenue from exempting new residents from the payment of the titling tax to be $4.8 million.
The Division does not feel that allowing for a three month amnesty period and requiring residents to title their vehicle within thirty days of establishing residency will create any additional revenues or cost.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
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 |
-4,800,000 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Estimated loss of revenue $ 4,800,000.00
Memorandum
Person submitting Fiscal Note: Rick Johnston
Email Address: rjohnston@dot.state.wv.us