Date Requested:January 09, 2014
Time Requested:03:22 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1227 Introduced SB222
CBD Subject: REINTRO2013-49VEHICLES 25YRS EXEMPT
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund Local Governments
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     This bill’s stated purpose is to exempt motor vehicles, including automobiles, motorcycles, airplanes, trucks and tractors, that are older than twenty-five years from taxable personal property. The bill also requires automobiles and motorcycles that are older than twenty-five years to display valid current antique licenses and provides that they may not be used for daily transportation.
    
     As written, the bill proposes that motor vehicles older than twenty-five calendar years are not required to be listed for Personal Property Tax purposes. Additionally, the bill requires said vehicles to display valid current antique licenses and provides that they may not be used for daily transportation. A previous comparison of Personal Property Tax information with Division of Motor Vehicles antique vehicle registrations indicates there may be up to 70,000 vehicles older than twenty-five calendar years not currently registered as antique vehicles. Requiring these vehicles to be registered as antique vehicles and prohibiting their use for daily transportation may pose a hardship on many residents who actually use older vehicles for day to day transportation. If the bill passes removing vehicles older than twenty-five calendar years from Personal Property Tax rolls, it would result in an annual decrease of roughly $1.3 million in local property tax revenues and a minimal loss in State revenue. The change in registration of many vehicles could impact the State Road Fund if there is a difference in registration costs for a regular vehicle versus an antique vehicle.
    
     Additional administrative costs associated with this bill would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
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 -1,300,000
3. Explanation of above estimates (including long-range effect):
     As written, the bill proposes that motor vehicles older than twenty-five calendar years are not required to be listed for Personal Property Tax purposes. Additionally, the bill requires said vehicles to display valid current antique licenses and provides that they may not be used for daily transportation. A previous comparison of Personal Property Tax information with Division of Motor Vehicles antique vehicle registrations indicates there may be up to 70,000 vehicles older than twenty-five calendar years not currently registered as antique vehicles. Requiring these vehicles to be registered as antique vehicles and prohibiting their use for daily transportation may pose a hardship on many residents who actually use older vehicles for day to day transportation. If the bill passes removing vehicles older than twenty-five calendar years from Personal Property Tax rolls, it would result in an annual decrease of roughly $1.3 million in local property tax revenues and a minimal loss in State revenue. The change in registration of many vehicles could impact the State Road Fund if there is a difference in registration costs for a regular vehicle versus an antique vehicle.
    
     Additional administrative costs associated with this bill would be minimal.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     This bill’s stated purpose is to exempt motor vehicles, including automobiles, motorcycles, airplanes, trucks and tractors, that are older than twenty-five years from taxable personal property. The bill also requires automobiles and motorcycles that are older than twenty-five years to display valid current antique licenses and provides that they may not be used for daily transportation.
    
     Passage of this bill may result in some State Constitutional concerns. Property Tax exemptions in the State Constitution are only for property used for certain activities (i.e., educational, literary, scientific, religious or charitable purposes). Since this proposed bill would exempt some vehicles but not all vehicles, the bill would appear to be in conflict with the Constitutional requirement for equal and uniform taxation.