Fiscal Note - SB 0077 - Redefines Salvage Motor Vehicles and the Titling Process For Them
L.R. NO. 0169-01
BILL NO. SB 77
SUBJECT: Motor Vehicles: Department of Revenue
TYPE: Original
DATE: February 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Highway Fund $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
No fiscal impact would be expected on the Department of Insurance (INS) or
the Missouri Highway Patrol (MHP).
Officials from the Department of Revenue (DOR), Motor Vehicle Bureau (MVB)
stated they would need one additional Branch Office Clerk and one additional
Telephone Operator I to examine and process approximately 25,000 stolen
vehicle titles each year. They would also be needed to assist applicants in
obtaining titles under the provisions of the proposal, provide information as
directed in the damage disclosure statement required under section 301.570.4
of the proposal, to assist applicants that do not complete the "type of
damage" portion of the title application and to perform the additional duties
required when insurance companies apply for titles. The MVB anticipates the
need to process over 11,000 applications in a special manner due to changes
in this proposal the first year following implementation, as well as
approximately 4,500 such applications in subsequent years.
DOR noted that as currently drafted, it would appear a separate notarized
statement would be necessary, resulting in a large number of rejected title
applications where the application is not accompanied by a properly notarized
statement. This increase in the number of rejected title applications would
result in additional administrative impact to the Department that has not
been requested in this fiscal response.
The MVB anticipates, based on information received from the Missouri Highway
Patrol, that the increased salvage title transactions would be offset by the
fact that vehicles over 7 years old would not have to obtain salvage titles.
Sales tax is not currently due from insurers that obtain title to vehicles
that have been stolen when the insurance company is obtaining title due to
payment of a total loss claim; therefore, the sales tax exemption of such
transactions contained in this proposal would not affect total state
revenues.
The Information Systems Division (ISD) would utilize existing personnel to
perform the necessary system modifications. State Data Center costs would
also be absorbed.
The MVB, after consulting with the MHP, anticipates this proposal will be
revenue neutral.
For purposes of this fiscal note, Oversight assumes any additional workload,
spread statewide, could be processed with existing resources.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
HIGHWAY FUND
Income-Department of Revenue (DOR) Unknown Unknown Unknown
Cost-Department of Revenue (DOR) (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
HIGHWAY FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would revise the definition of salvage vehicles and
the method for titling vehicles which were previously salvage vehicles.
Insurance companies would be required to provide information to Department of
Revenue when title to a vehicle is acquired under a claim of insurance.
Numerous other provisions relating to "salvage vehicles" are included.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Revenue
Department of Insurance
Department of Public Safety
Missouri Highway Patrol
This Fiscal Note is not an official copy and should not be quoted or cited.