FISCAL NOTE

Date Requested: February 28, 2025
Time Requested: 03:12 PM

1304	Introduced	HB3042
Agency:	Motor Vehicles, WV Division of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:

FUND(S):

Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses

Fiscal Note Summary

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

The purpose of this bill is to exempt honorably discharged veterans of any branch of the armed services of the United States from the payment of registration fees under the provisions of this chapter, except for a special initial application fee of $10. There are approximately 120,000 citizens eligible for this program. The Division estimates that all 120,000 will take advantage of the reduced fee with an average of 1.5 vehicles per veteran for total vehicles registered of 180,000 (120,000 x 1.5). The veteran plate has a greater cost ($6.05) than the standard class A plate ($2.95) giving a greater cost per plate of $3.10 ($6.05 - $2.95). This would increase the cost of material in the first year by $558,000 ($3.10 x 180,000) Additionally, there would be programming costs for the Cash Register programming of $2,500 (20 hours at $125 per hour). This produces a total increased cost in the first year of $560,500 ($558,000 + $2,500) It is estimated that after full implementation there will be an average of 7,200 new plates issued each year at an additional cost of $22,320 (7,200 x $3.10). For each new plate issued there will be a $10.00 fee. This will generate $1,800,000 (180,000 plates X $10.00). For every registration, both new and renewed, the Division will not collect $51.50 (registration fee $50, Litter Fee $1, and $0.50 insurance fee). This will result in a loss of revenue of $9,270,000 (180,000 registrations x $51.50). These two items produce a net revenue reduction of $7,470,000 ($1,800,000 - $9,270,000). After full implementation it is estimated that the Division will issue 7,200 new plates per year for a total revenue of $72,000 (7,200 x $10.00) The Division estimates that the overall number of plates will remain constant producing a reduction of revenue of $9,270,000, as stated above. The net reduction of revenue after full implementation would be $9,198,000 ($72,000 - $9,270,000).

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2025 Increase/Decrease (use"-")	2026 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	560,500	22,320
Personal Services	0	0	0
Current Expenses	0	560,500	22,320
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	-7,470,000	-9,198,000

Explanation of above estimates (including long-range effect):

FY 2026 $2,500 Cash register programming, 20 hours at $125 per hour 2,500 Total Programming $6.05 Cost of Veterans Plate $2.95 Cost of class A plate $3.10 Increased cost per plate 180,000 New Plates $558,000 Total Increase plate cost $560,500 Total Expense 120,000 Honorable discharged veterans 1.5 Cars per Veteran 180,000 Estimated total vehicles -51.50 per item revenue reduction -9,270,000 Revenue Reduction $180,000 Estimated total vehicles $10 Plate fee $1,800,000 Revenue generated -7,470,000 Net revenue change FULL IMPLEMENTATION $6.05 Cost of Veterans Plate $2.95 Cost of class A plate $3.10 Increased cost per plate 7,200 New Plates $22,320 Total Increase plate cost $22,320 Total Expense 120,000 Honorable discharged veterans 1.5 Cars per Veteran 180,000 Estimated total vehicles -51.50 per item revenue reduction -9,270,000 Revenue Reduction 7,200 Est. of new plates sold annually $10 Plate fee $72,000 Revenue generated -9,198,000 Net revenue change

Memorandum

Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.

Person submitting Fiscal Note: Raeann Kriner
Email Address: raeann.k.kriner@wv.gov