FISCAL NOTE
FUND(S):
Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to exempt from sales tax and from the privilege tax the value of special equipment that is added to a vehicle for the use of a person with physical disabilities.
The Division of Motor Vehicles currently charges the 5% privilege tax on special equipment for persons with physical disabilities if the equipment is installed at the time the vehicle is purchased. If the equipment is installed after the vehicle is purchased, the owner will pay sales tax.
Although records are not kept of titles issued for vehicles with special equipment, the Division does estimate that approximately 150 titles are issued each year for vehicles with special equipment.
The Division estimates that the special equipment added to a vehicle is valued at $5,000. The loss of the 5% privilege tax would be $250 per vehicle, or approximately $37,500 per year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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 |
-37,500 |
-37,500 |
Explanation of above estimates (including long-range effect):
Privilege Tax Loss
Number of Vehicles Titled
w/Specialized Equipment Per Year 150
Estimated Value of Special Equipment $ 5,000
Privilege Tax 5%
Total Privilege Tax Lost Per Year $ 37,500
Memorandum
Person submitting Fiscal Note: Rick Johnston
Email Address: rjohnston@dot.state.wv.us