Date Requested:February 17, 2013
Time Requested:12:17 PM
Agency: Motor Vehicles, Division of
CBD Number: Version: Bill Number: Resolution Number:
2013R1970 Introduced HB2443
CBD Subject: ANTIQUE CARS EXEMPT
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 motor vehicles from taxes and fees. “Antique motor vehicle” means any motor vehicle which is more than twenty-five years old and is owned solely as a collector’s item.
    
     This bill exempts sales tax and all other fees charged during the titling process. Fees include titling fees, lien fees and vehicle registration fees.
    
     As of December 31, 2012, there were 1,504 classic cars titled; 3,445 antique cars and motorcycles titled using a license plate issued in the year the vehicle was manufactured; and 20,596 antique vehicles. There are 48,535 vehicles currently registered in the state over 25 years old.
    
     It is estimated that 1,000 vehicles more than twenty-five years old are titled each year; with an average of $69 in tax paid per vehicle.
    
     There would be an approximate savings of $62,826 each year by eliminating the renewal process.

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 -62,826 -62,826 -62,826
Personal Services -31,045 -31,045 -31,045
Current Expenses -31,781 -31,781 -31,781
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues -1,686,874 -1,686,874 -1,686,874
3. Explanation of above estimates (including long-range effect):
    REGISTRATION FEES:
    
    Classic Cars (AC) 1,504 x $45 $ 67,680
    Antique Cars Using
     manufactured year plate (AX & GX) 3,445 x $3.50 $ 12,058
    Registered Antique (V) 20,596 x $3.50 $ 72,086
    Vehicles over 25 years old (A) 48,535 x $30 $1,456,050
    
    TOTAL REGISTRATION FEES $1,607,874
    
    Sales Tax Generated 1,000 x $69 $ 69,000
    Title Fees 1,000 x $10 $ 10,000
    
    TOTAL TAXES AND FEES $ 79,000
    
    TOTAL LOSS IN REVENUE $1,686,874
    
    SAVINGS:
    
    Reduction in the number of
     registration renewals processed 50,039 x .120119 $ 6,011
     Postage 50,039 x .37 $ 18,514
     Equivalent of one Office Assistant $ 31,045
     Registration Decal 50,039 x .145 $ 7,256
    
    TOTAL SAVINGS $ 62,826
    


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