| Date Requested:February 26, 2013 Time Requested:03:08 PM |
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| FUND(S) Road Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| Special Fund | |||
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 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. |
| 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 | -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 |