FISCAL NOTE
FUND(S):
General Revenue Fund, Local Government Funds
Sources of Revenue:
General Fund,Other Fund Local Government Funds
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to assess all classic motor vehicles at a flat rate of $1,000.
As written, this bill proposes that beginning July 1, 2014 all classic motor vehicles would have an assessed value of $1,000. The bill provides that “classic motor vehicle” has the same meaning as expressed in W. Va. Code §17A-10-3a (i.e., “a motor vehicle which is more than twenty-five years old and is registered pursuant to section 3 of this article [W. Va. Code §17-10-3] and is used for general transportation”).
According to our interpretation and based upon available information, passage of this bill would result in a net increase in local government revenue of roughly $600,000 per year. While there would be a net increase in additional revenue Statewide, eight counties would experience a reduction in revenue. State General Revenue Fund revenue would increase by a minimal amount.
Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $20,000. Local government may also incur some minimal additional administrative costs due to passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
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):
Passage of this bill would require that beginning July 1, 2014 all classic motor vehicles would have an assessed value of $1,000. The bill provides that “classic motor vehicle” has the same meaning as expressed in W. Va. Code §17A-10-3a (i.e., “a motor vehicle which is more than twenty-five years old and is registered pursuant to section 3 of this article [W. Va. Code §17-10-3] and is used for general transportation”).
According to our interpretation and based upon available information, passage of this bill would result in a net increase in local government revenue of roughly $600,000 per year. While there would be a net increase in additional revenue Statewide, eight counties would experience a reduction in revenue. State General Revenue Fund revenue would increase by a minimal amount. Roughly 80,000 vehicles would be assessed at $1,000 under the provision of this bill.
Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $20,000. Local government may also incur some minimal additional administrative costs due to passage of this bill.
Memorandum
The stated purpose of this bill is to assess all classic motor vehicles at a flat rate of $1,000.
The bill’s proposal to assess all classic motor vehicles at a flat rate disregards the actual values of such vehicles. This appears to conflict with Article X, Section 1 of the West Virginia Constitution which mandates that “all property, both real and personal, shall be taxed in proportion to its value ...”
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov