FISCAL NOTE
Date Requested: February 13, 2025
Time Requested: 03:48 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1801 |
Introduced |
HB2374 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
State Foad Fund
Sources of Revenue:
Other Fund State Road Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt from the sales tax all-terrain vehicles and utility terrain vehicles used as farm equipment.
Based on our interpretation, the bill provides for an additional exemption to the 6 percent Motor Vehicle Sales Tax on the sales price of a motor vehicle. The exemption would only apply to all-terrain vehicles and utility terrain vehicles which receive a farm-use exemption certificate under W.Va. Code §17A-3-2. According to our interpretation, passage of this bill would have a minimal impact on State Road Fund revenue.
There would no additional administrative costs incurred by the State Tax Department. There may also be additional administrative costs incurred by the Division of Motor Vehicles.
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 |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Based on our interpretation, the bill provides for an additional exemption to the 6 percent Motor Vehicle Sales Tax on the sales price of a motor vehicle. The exemption would only apply to all-terrain vehicles and utility terrain vehicles which receive a farm-use exemption certificate under W.Va. Code §17A-3-2. According to our interpretation, passage of this bill would have a minimal impact on State Road Fund revenue.
There would no additional administrative costs incurred by the State Tax Department. There may also be additional administrative costs incurred by the Division of Motor Vehicles.
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: Mark Muchow
Email Address: radfiscal@wv.gov