Date Requested:January 13, 2011
Time Requested:03:24 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1347 Introduced HB2046
CBD Subject: AUTO DISABILITY EQUIPMENT
FUND(S)
General Revenue Fund, State Road Fund
Sources of Revenue
General Fund,Other Fund State Road Fund
Legislation creates:
Neither Program nor Fund

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 and use tax special equipment installed in a motor vehicle for the use of a person with physical disabilities and to exclude the value of the equipment when determining the value of the vehicle for imposition of the tax on the privilege of effecting the certification of the title of the vehicle.
    
    Due to the broad nature of this bill, we are unable to accurately estimate the loss in either sales tax revenue to the General Revenue Fund or sales tax revenue to the State Road Fund. The bill does not indicate what is classified as special equipment. Nor, does the bill define physical disability. Also, this bill would exempt repair and replacement parts for such equipment.
    
    Additional administrative costs to the State Tax Department would be minimal during the current fiscal year due to notifying taxpayers of the new exemption. Thereafter, there would be no additional administrative costs to the Department.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 4,000 0 0
Personal Services 0 0 0
Current Expenses 4,000 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Due to the broad nature of this bill, we are unable to accurately estimate the loss in either sales tax revenue to the General Revenue Fund or sales tax revenue to the State Road Fund. The bill does not indicate what is classified as special equipment. Nor, does the bill define physical disability. Also, this bill would exempt repair and replacement parts for such equipment.
    
    Additional administrative costs to the State Tax Department would be $4,000 during the current fiscal year due to notifying taxpayers of the new exemption. Thereafter, there would be no additional administrative costs to the Department.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to exempt from the sales and use tax special equipment installed in a motor vehicle for the use of a person with physical disabilities and to exclude the value of the equipment when determining the value of the vehicle for imposition of the tax on the privilege of effecting the certification of the title of the vehicle.
    
    The bill does not indicate what is classified as special equipment. For example, is the special equipment used to operate a motor vehicle by the person with disabilities or could it also be used by passengers? Also, the bill does not indicate what is classified as a physical disability.