Date Requested:February 17, 2012
Time Requested:02:21 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2012R2174 Revised HB4528
CBD Subject: TAXING OF UTILITY TERRAIN VEHICLES
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 certain utility terrain vehicles (UTV’s) from motor vehicle sales tax. The tax exemption applies to UTV’s used for agricultural purposes by individuals with a farm use certificate issued by the assessor. The bill also defines utility terrain vehicles as motor vehicles.
    
     UTV’s have only been subject to motor vehicle tax since 2010. The previous sales tax exemption available to farmers was not addressed in 2010 legislation. According to an industry representative, the tax exemption would apply to no more than 500 vehicles.
    
     The estimated current average cost of UTV’s is around $8,500. At five percent tax, the revenue loss would be $212,500.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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 -212,500 -212,500 -212,500
3. Explanation of above estimates (including long-range effect):
    Revenue Loss:
    
     Approximate Purchase Price of UTV $ 8,500
     5% Sales Tax $ 425
    
     500 (designated Farm Use UTV’s) X $425 $ 212,500
    
     Estimated Revenue Loss $ 212,500
    


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