FISCAL NOTE



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


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


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