Date Requested: May 10, 2017
Time Requested: 03:13 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
4006 Introduced HB102
CBD Subject: Governor -- Bills Requested By


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Increases Revenue From Existing Sources, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is to increase the funding for the State Road Fund by
    Fund by increasing Division of Motor Vehicles administrative fees and motor fuel excise
    excise taxes, changing the flat rate component of the motor fuel excise tax, increas
    increase the minimum average wholesale price of motor fuels for purposes of the five pe
    five percent variable fuel tax on a certain date, increasing administrative DMV fees ve
    fees very five years on September 1 based on the US Department of Labor, Bureau of Labo
    of Labor Statistics most current Consumer Price Index, imposing annual registr
    registration fee for certain alternative fuel vehicles and specified effective dates.
    
    dates.
    
    According to our interpretation, the proposed bill would increase (1) the flat rate
    rate of motor fuel to $0.25 per invoiced gallon; (2) the minimum average whole
    wholesale price of motor fuel other than alternative fuel to $3.04 per invoiced gallo
    gallon, thereby raising the variable component of the Motor Fuel Excise Tax calcu
    calculation to no less than $0.152 per invoiced gallon; and (3) various fees impos
    imposed by the West Virginia Division of Motor Vehicles (DMV). This fiscal note addre
    addresses only those increases related to the Motor Fuel Excise Tax; the West Virgi
    Virginia DMV will provide a revenue estimate of increased fees.
    
    With respect to the increase in the flat rate to $0.25 per invoiced gallon, it is ant
    anticipated this increase would yield $44.6 million in additional revenues in FY2
    FY2018, $48.6 million in FY2019, and $48.9 million for each year thereafter. The inc
    increase in the variable rate component to $0.152 per invoiced gallon is expected to
    to yield additional revenues of $44.9 million in FY2018, $49.0 million in FY2019, and
    and $49.3 million for each year thereafter. In total, the proposed bill would inc
    increase State Road Fund collections by $89.5 million in FY2018, $97.6 million in FY2
    FY2019, and $98.2 million for each year thereafter.
    
    Additional costs incurred by the State Tax Department would be $10,000 for the r
    remainder of FY2017 and $5,000 in FY2018. No additional costs are expected t
    thereafter.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 10,000 5,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 10,000 5,000 0
2. Estimated Total Revenues 0 89,500,000 97,600,000


Explanation of above estimates (including long-range effect):


    According to our interpretation, the proposed bill would increase (1) the flat rate o
    rate of motor fuel to $0.25 per invoiced gallon; (2) the minimum average wholes
    wholesale price of motor fuel other than alternative fuel to $3.04 per invoiced gallon
    gallon, thereby raising the variable component of the Motor Fuel Excise Tax calcul
    calculation to no less than $0.152 per invoiced gallon; and (3) various fees impose
    imposed by the West Virginia Division of Motor Vehicles (DMV). This fiscal note addres
    addresses only those increases related to the Motor Fuel Excise Tax; the West Virgin
    Virginia DMV will provide a revenue estimate of increased fees.
    
    With respect to the increase in the flat rate to $0.25 per invoiced gallon, it is anti
    anticipated this increase would yield $44.6 million in additional revenues in FY20
    FY2018, $48.6 million in FY2019, and $48.9 million for each year thereafter. The incr
    increase in the variable rate component to $0.152 per invoiced gallon is expected to y
    to yield additional revenues of $44.9 million in FY2018, $49.0 million in FY2019, and
    and $49.3 million for each year thereafter. In total, the proposed bill would incr
    increase State Road Fund collections by $89.5 million in FY2018, $97.6 million in FY20
    FY2019, and $98.2 million for each year thereafter.
    
     
    Additional costs incurred by the State Tax Department would be $10,000 for the r
    remainder of FY2017 and $5,000 in FY2018. No additional costs are expected t
    thereafter.
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov