|Date Requested:February 15, 2013
Time Requested:10:08 AM
| FUND(S) |
Special Revenue; Road Fund
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this bill is to allow disabled veterans two motor vehicle registration plates exempt from the annual registration fee. As of June 30, 2012, there were 4,728 Disabled Veterans license plates registered in the West Virginia.
The initial fee charged for a disabled veterans license plate is $15.00 which covers only the $1.00 litter fee and $.50 insurance fee and keeps the plate active for a 10 year period, with a 10 year renewal of $15.00. Additional plates may be purchased under current law for an initial fee of $40 and renewed annually at a rate of $30 per plate.
House Bill 2103 is eliminating the $15.00 single plate fee. Under this legislation the $40 initial fee and $30 renewal will be eliminated for an additional plate.
Based on this information the annual revenue loss is $128,340. The total annualized revenue loss over the ten year comparison period is $1,397,100.
The production cost for one Disabled Veteran license plate is $6.80.
These assumptions are based on a ten-year license cycle. The calculations also assume (for calculation purposes) that all disabled veterans will purchase a second plate.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||-242,040||-128,340|
3. Explanation of above estimates (including long-range effect):
Disable Veteran Plates as of 6/30/2012 4,728
Cost of Registration
First Plate $15.00 (10-year period)
Second Plate $40.00 initial/$30 annual renewal
First Plate 4,278 x $15.00 = $ 70,920
Second Plate 4,278 x $40.00 = $ 171,120
4,278 x $30 annual renewal $ 128,340
First Year Total Revenue Loss $ 242,040
Revenue Loss Per Year
for Years 2 - 9 $1,155,060