Sources of Revenue:
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 exempt antique cars from taxation and fees.
An antique vehicle is defined as any vehicle that is twenty-five years old and is owned solely as a collector’s item.
The Division estimates that approximately 1,000 transactions are processed each year involving vehicles that are twenty-five years old.
The bill not only exempts antique vehicles from sales tax but also all other fees that are charged during the titling of a vehicle. These fees would consist of the titling fee, lien fees and vehicle registration fees.
The Division queried the vehicle data base on March 4, 2009 and determined that there are 1,165 Classic Cars titled; 2,956 Antique Cars that are titled using a registration plate issued in the year the vehicle was manufactured; and 11,870 vehicles titled as Antique vehicles. In addition there are 23,305 Class A passenger vehicles that are twenty-five years old or older still active in the data base.
The Division estimates that approximately 1,000 vehicles twenty-five years old or more are sold and titled each year. Using the results of a 2008 Division of Motor Vehicles’ survey, the average tax paid on an antique vehicle was $69 per transaction. The Division estimates that $69,000 would be lost as sales tax and $10,000 would be lost from title fees.
Registration fees that would be eliminated would total $865,078.
Estimated reduction in title revenue would be $79,000.
Cost savings from not renewing 39,296 vehicle registrations would be $50,805.
Fiscal Note Detail
|Effect of Proposal
|1. Estmated Total Cost
|Repairs and Alterations
|2. Estimated Total Revenues
Explanation of above estimates (including long-range effect):
Class V Automobiles (10 year plate) 11,870x$3.50/yr $ 41,545
Class AX Antique (10 year plate) 631x$3.50/yr $ 2,208
Class AY (plate is same year
as manufacture) 2,325 x $30 $ 69,750
Classic Car Plate 1,165 x $45 $ 52,425
Class A Registrations
(25 years or older) 23,305 x $30 $ 699,150
TOTAL REGISTRATION FEES $ 865,078
Estimated Transactions 1,000
Average tax paid per
transaction in 2008 $ 69
Total Tax $ 69,000
Title fees per transaction $ 10
Total Title Fees $ 10,000
TOTAL REDUCTION IN ROAD FUND REVENUE $944,078
Reduction in the number of registration
renewals processed 39,296 x 180.14/1,000 $ 7,078.78
Postage 39,296 x .32 $ 12,574.72
Equivalent of one clerk $ 25,650.00
Registration Decal 39,296 x .14 $ 5,501.44
TOTAL SAVINGS $ 50,804.94
Person submitting Fiscal Note:
Jerry L. Conrad, Director
Email Address: Jerry.L.Conrad@wv.gov