Date Requested:February 16, 2013
Time Requested:09:43 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1367 Introduced HB2150
CBD Subject: UTILITY TERRAIN VEHICLES TAXED
FUND(S)
General Revenue Fund
Sources of Revenue
General 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 eliminate the sales tax on tax utility terrain vehicles. The bill sets forth the conditions that must be met to qualify for the exclusion. The bill also defines utility terrain vehicles as motor vehicles.
    
     As written, this bill would modify the definition of motor vehicles, for purposes of the five percent consumer sales tax on motor vehicles, to include utility terrain vehicles. Additionally, the bill proposes that the five percent tax on utility terrain vehicles does not apply to such vehicles used in the commercial production of an agricultural product. Since the five percent consumer sales tax on motor vehicles is administered by the Division of Motor Vehicles, it is expected that the Division of Motor Vehicles will submit a separate Fiscal Note for this bill. This Fiscal Note only deals with the six percent Consumers Sales and Service Tax. Generally, any utility vehicle not registered with the Division of Motor Vehicles would be subject to the six percent Consumers Sales and Service Tax as administered by the State Tax Department. If the proposed exemption from tax for utility terrain vehicles used in the commercial production of an agricultural product extends to the six percent tax, there would be a minimal reduction in the General Revenue Fund due to existing statutory exemptions.
    
     There would be no additional administrative costs to the State Tax Department associated with the passage of this bill. County Assessors may incur additional administrative costs attributable to the bill’s provision that the Assessor stamp applications for the exemption for use in the production of an agricultural product.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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 0 0 0
3. Explanation of above estimates (including long-range effect):
     The purpose of this bill is to eliminate the sales tax on tax utility terrain vehicles. The bill sets forth the conditions that must be met to qualify for the exclusion. The bill also defines utility terrain vehicles as motor vehicles.
    
     As written, this bill would modify the definition of motor vehicles, for purposes of the five percent consumer sales tax on motor vehicles, to include utility terrain vehicles. Additionally, the bill proposes that the five percent tax on utility terrain vehicles does not apply to such vehicles used in the commercial production of an agricultural product. Since the five percent consumer sales tax on motor vehicles is administered by the Division of Motor Vehicles, it is expected that the Division of Motor Vehicles will submit a separate Fiscal Note for this bill. This Fiscal Note only deals with the six percent Consumers Sales and Service Tax. Generally, any utility vehicle not registered with the Division of Motor Vehicles would be subject to the six percent Consumers Sales and Service Tax as administered by the State Tax Department. If the proposed exemption from tax for utility terrain vehicles used in the commercial production of an agricultural product extends to the six percent tax, there would be a minimal reduction in the General Revenue Fund due to existing statutory exemptions.
    
     There would be no additional administrative costs to the State Tax Department associated with the passage of this bill. County Assessors may incur additional administrative costs attributable to the bill’s provision that the Assessor stamp applications for the exemption for use in the production of an agricultural product.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The purpose of this bill is to eliminate the sales tax on tax utility terrain vehicles. The bill sets forth the conditions that must be met to qualify for the exclusion. The bill also defines utility terrain vehicles as motor vehicles.
    
     Although the bill amends the definition of “motor vehicle” to include “utility terrain vehicles,” the bill does not provided a definition of “utility terrain vehicles.” The lack of a definition may broaden the proposed exemption beyond the original intent.