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 tax utility terrain vehicles. The bill makes an exception for vehicles used for agricultural purposes. The bill also defines utility terrain vehicles as motor vehicles.
Since the current industry practice is to charge five percent sales tax on all ATV’s and UTV’s, there should be little or no impact on designating UTV’s as specifically taxable. The exemption for “farm use” UTV’s should affect no more than 500 vehicles according to an industry representative.
The estimated current average cost of UTV’s is around $8,500. At five percent tax, the revenue loss would be $212,500.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
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 |
-212,500 |
-212,500 |
-212,500 |
Explanation of above estimates (including long-range effect):
Revenue Loss:
Approximate Purchase Price of UTV $ 8,500
5% Sales Tax $ 425
500 (designated Farm Use UTV’s) X $425 $ 212,500
Estimated Revenue Loss $ 212,500
Memorandum
Person submitting Fiscal Note: Jerry L. Conrad
Email Address: Jerry.L.Conrad@wv.gov