Date Requested:January 13, 2011
Time Requested:04:10 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2011R1488 Introduced HB2236
CBD Subject: ANTIQUE CARS TAX FREE
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 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
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 -50,805 -50,805 -50,805
Personal Services -25,650 -25,650 -25,650
Current Expenses -25,155 -25,155 -25,155
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues -944,078 -944,078 -944,078
3. Explanation of above estimates (including long-range effect):
    REGISTRATION FEES:
    
    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
    
    SALES TAX:
    
    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
    
    SAVINGS:
    
    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
    
    
    


Memorandum
Person submitting Fiscal Note:
Jerry L. Conrad, Director
Email Address:
Jerry.L.Conrad@wv.gov