FISCAL NOTE
Date Requested: May 10, 2017
Time Requested: 03:13 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4006 |
Introduced |
HB102 |
|
|---|
| CBD Subject: |
Governor -- Bills Requested By |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road Fund
Legislation creates:
Increases Revenue From Existing Sources, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to increase the funding for the State Road Fund by
Fund by increasing Division of Motor Vehicles administrative fees and motor fuel excise
excise taxes, changing the flat rate component of the motor fuel excise tax, increas
increase the minimum average wholesale price of motor fuels for purposes of the five pe
five percent variable fuel tax on a certain date, increasing administrative DMV fees ve
fees very five years on September 1 based on the US Department of Labor, Bureau of Labo
of Labor Statistics most current Consumer Price Index, imposing annual registr
registration fee for certain alternative fuel vehicles and specified effective dates.
dates.
According to our interpretation, the proposed bill would increase (1) the flat rate
rate of motor fuel to $0.25 per invoiced gallon; (2) the minimum average whole
wholesale price of motor fuel other than alternative fuel to $3.04 per invoiced gallo
gallon, thereby raising the variable component of the Motor Fuel Excise Tax calcu
calculation to no less than $0.152 per invoiced gallon; and (3) various fees impos
imposed by the West Virginia Division of Motor Vehicles (DMV). This fiscal note addre
addresses only those increases related to the Motor Fuel Excise Tax; the West Virgi
Virginia DMV will provide a revenue estimate of increased fees.
With respect to the increase in the flat rate to $0.25 per invoiced gallon, it is ant
anticipated this increase would yield $44.6 million in additional revenues in FY2
FY2018, $48.6 million in FY2019, and $48.9 million for each year thereafter. The inc
increase in the variable rate component to $0.152 per invoiced gallon is expected to
to yield additional revenues of $44.9 million in FY2018, $49.0 million in FY2019, and
and $49.3 million for each year thereafter. In total, the proposed bill would inc
increase State Road Fund collections by $89.5 million in FY2018, $97.6 million in FY2
FY2019, and $98.2 million for each year thereafter.
Additional costs incurred by the State Tax Department would be $10,000 for the r
remainder of FY2017 and $5,000 in FY2018. No additional costs are expected t
thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
10,000 |
5,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
10,000 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
89,500,000 |
97,600,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would increase (1) the flat rate o
rate of motor fuel to $0.25 per invoiced gallon; (2) the minimum average wholes
wholesale price of motor fuel other than alternative fuel to $3.04 per invoiced gallon
gallon, thereby raising the variable component of the Motor Fuel Excise Tax calcul
calculation to no less than $0.152 per invoiced gallon; and (3) various fees impose
imposed by the West Virginia Division of Motor Vehicles (DMV). This fiscal note addres
addresses only those increases related to the Motor Fuel Excise Tax; the West Virgin
Virginia DMV will provide a revenue estimate of increased fees.
With respect to the increase in the flat rate to $0.25 per invoiced gallon, it is anti
anticipated this increase would yield $44.6 million in additional revenues in FY20
FY2018, $48.6 million in FY2019, and $48.9 million for each year thereafter. The incr
increase in the variable rate component to $0.152 per invoiced gallon is expected to y
to yield additional revenues of $44.9 million in FY2018, $49.0 million in FY2019, and
and $49.3 million for each year thereafter. In total, the proposed bill would incr
increase State Road Fund collections by $89.5 million in FY2018, $97.6 million in FY20
FY2019, and $98.2 million for each year thereafter.
Additional costs incurred by the State Tax Department would be $10,000 for the r
remainder of FY2017 and $5,000 in FY2018. No additional costs are expected t
thereafter.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov