FISCAL NOTE
FUND(S):
General Revenue Fund
Sources of Revenue:
General 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.
As written, this bill would modify the definition of motor vehicles, for purposes of the five percent consumer sales tax on motor vehicles, to include utility terrain vehicles. Additionally, the bill proposes that the five percent tax on utility terrain vehicles does not apply to such vehicles used in the commercial production of an agricultural product. Since the five percent consumer sales tax on motor vehicles is administered by the Division of Motor Vehicles, it is expected that the Division of Motor Vehicles will submit a separate Fiscal Note for this bill. This Fiscal Note only deals with the six percent Consumers Sales and Service Tax. Generally, any utility vehicle not registered with the Division of Motor Vehicles would be subject to the six percent Consumers Sales and Service Tax as administered by the State Tax Department. If the proposed exemption from tax for utility terrain vehicles used in the commercial production of an agricultural product extends to the six percent tax, there would be a minimal reduction in the General Revenue Fund due to existing statutory exemptions.
There would be no additional administrative costs to the State Tax Department associated with the passage of this bill. County Assessors may incur additional administrative costs attributable to the bill’s provision that the Assessor stamp applications for the exemption for use in the production of an agricultural product.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
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.
As written, this bill would modify the definition of motor vehicles, for purposes of the five percent consumer sales tax on motor vehicles, to include utility terrain vehicles. Additionally, the bill proposes that the five percent tax on utility terrain vehicles does not apply to such vehicles used in the commercial production of an agricultural product. Since the five percent consumer sales tax on motor vehicles is administered by the Division of Motor Vehicles, it is expected that the Division of Motor Vehicles will submit a separate Fiscal Note for this bill. This Fiscal Note only deals with the six percent Consumers Sales and Service Tax. Generally, any utility vehicle not registered with the Division of Motor Vehicles would be subject to the six percent Consumers Sales and Service Tax as administered by the State Tax Department. If the proposed exemption from tax for utility terrain vehicles used in the commercial production of an agricultural product extends to the six percent tax, there would be a minimal reduction in the General Revenue Fund due to existing statutory exemptions.
There would be no additional administrative costs to the State Tax Department associated with the passage of this bill. County Assessors may incur additional administrative costs attributable to the bill’s provision that the Assessor stamp applications for the exemption for use in the production of an agricultural product.
Memorandum
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.
Although the bill amends the definition of “motor vehicle” to include “utility terrain vehicles,” the bill does not provided a definition of “utility terrain vehicles.” The lack of a definition may broaden the proposed exemption beyond the original intent.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov