FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 08:42 PM |
| Agency: |
Motor Vehicles, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1746 |
Introduced |
HB2185 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to make the collection and payment by the seller of sales tax on seller-financed sales of motor vehicles to be completed as the seller receives the proceeds of the sale from the buyer equal to the applicable percent sales tax of the amount of the monthly payment, applied to each payment, and continuing for the entire term of the loan period
To operate this program the Division will need two Accounting Technicians to maintain the accounts receivable program, and three Accountant/Auditors stationed around the state to ensure the accuracy of the data being reported. The Division will also need to add an attorney and paralegal for the purpose of pursuing collection of defaulted tax payments. Total annual salary and benefits for these six positions is $501,420.
The Division can not represent itself in court and therefore would need to pay for an attorney through the Attorney General’s office to fill this role. All the employees will need to be equipped with appropriate equipment required to perform their duties. The list of items needed include various computer equipment and vehicles for the individuals who will be traveling. Total first year current expense is projected to be $234,538. Those current expenses continuing from year to year will total $104,326 per year.
The Division estimates that there are currently $32,712,480 in seller financed car sales each year producing $1,962,749 ($32,712,480 X 6%) in tax revenue. The Division projects that 40% of this total will be uncollectible for an annual reduction of revenue of $785,100($1,962,749 X 40%)
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
735,958 |
605,746 |
| Personal Services |
0 |
501,420 |
501,420 |
| Current Expenses |
0 |
234,538 |
104,326 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-785,100 |
-785,100 |
Explanation of above estimates (including long-range effect):
Personnel Costs
FY 2025
Position Descriptions Salary/Per Positions
Accounting Tech $39,000 2 $78,000
Accountant/Auditor $54,000 3 $162,000
Attorney $83,000 1 $83,000
Paralegal $43,000 1 $43,000
Total $366,000
Benefits $135,420
Total Salary and Benefits $501,420
Current Expenses
FY 2025
Cost/per Quantity Total
Attorney General $89,000 1 $89,000
Cell service $624 4 $2,496
Office supplies
/person $80 7 $560
Vehicle Fuel $1,943 3 $5,829
Vehicle Maintenance $2,147 3 $6,441
Vehicles $40,000 3 $120,000
Laptop $1,059 4 $4,236
Scanner $537 4 $2,148
Printer $217 4 $868
Cell phone equip.$80 4 $320
Desktop computer $880 3 $2,640
Total Current Expense $234,538
Personnel Costs
Upon Full Implementation
Accounting Tech $39,000 2 $78,000
Account/Auditor $54,000 3 $162,000
Attorney $83,000 1 $83,000
Paralegal $43,000 1 $43,000
$366,000
Benefits $135,420
Total Salary and Benefits $501,420
Current Expenses
Upon Full Implementation
Cost/per Quantity Total
Attorney General $89,000 1 $89,000
Cell service $624 4 $2,496
Office supplies
/person $80 7 $560
Vehicle Fuel $1,943 3 $5,829
Vehicle Maintenance $2,147 3 $6,441
Current Expense $104,326
Estimated Revenue Reduction
Projected Seller Financed Deals 5,452
Estimated Average Sales Value $6,000
Estimated total Sales value $32,712,480
Tax Rate 6.00%
Total Tax $1,962,749
Estimated Loss Rate 40.00%
Estimated Revenue Reduction $785,100
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