Fiscal Note - SB 0069 - License Plates: Korean War & WW II Plates Established; Purple Heart Plate Fee Reduced
L.R. NO. 0263-01
BILL NO. Truly Agreed To And Finally Passed SB 69
SUBJECT: Licenses-Motor Vehicles-Veterans
TYPE: Original
DATE: May 1, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Highway Fund $25,589 $143,314 $143,314
Total Estimated
Net Effect on All
State Funds $25,589 $143,314 $143,314
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
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 $38,999 $47,762 $47,762
FISCAL ANALYSIS
ASSUMPTION
Staff from the Department of Revenue (DOR) - Motor Vehicle Bureau (MVB)
anticipate the need for one half clerk typist to examine and edit the
additional application form for World War II Veteran and Korean War Veteran
plates. DOR officials indicated there would be an expense of $5.40 for
manufacturing each set of special plates with an emblem, seal or logo.
The Veterans Commission estimates 280,400 honorably discharged veterans from
the Korean and World War II currently reside in Missouri. DOR assumed that
if 5% of these veterans apply for one of these special plates in FY98 and
another 5% in FY99, the fiscal impact would be as follows:
280,400 x 5% = 14,020 veterans plates x $15 fee = $210,300 for FY98, and
$420,600 in FY99 and FY00. This increase in revenue would be distributed in
accordance with Article IV, section 30(b) of the Missouri Constitution.
Oversight assumes that a total of 5% of these applicants would be a more
conservative number. Therefore the income and costs figures have been
reduced accordingly.
Motor Vehicle Bureau further stated that this legislation would require that
the additional fee would be paid only once at the time of initial application
for the Purple Heart Medical license plate. MVB indicated they would have
expenses in the amount of $470 in FY98 for policies, postage, and forms.
Currently there are 1,281 holders of Purple Heart Medical license plates.
Loss of funds would be as follows:
1,281 plates x $15 additional fee = ($19,215)
$19,215 x 75% = ($14,411) Highway Fund
$19,215 x 15% = ($2,888) Cities Road Funds
$19,215 x 10% = ($1,925) County Aid Road Trust Funds
Oversight believes that the estimated expenses for policies, forms, and
postage is minimal and could be absorbed in the regular appropriations.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
HIGHWAY FUND
Income - Department of Revenue
Application fees 75% $131,438 $157,725 $157,725
Loss: Department of Revenue
Loss-Additional Fee ($14,411) ($14,411) ($14,411)
Cost - Department of Revenue
Personal Service (.5 FTE) ($6,806) $0 $0
Fringe Benefits ($2,091) 0 0
Expense and Equipment ($82,541) 0 0
Total Cost to Department of Revenue ($91,438) $0 $0
ESTIMATED NET EFFECT ON
HIGHWAY FUND $25,589 $143,314 $143,314
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LOCAL FUNDS
Income to:
County Aid Road Trust Fund $ 15,600 $ 29,620 $ 29,620
City Highway Funds 23,399 18,142 18,142
ESTIMATED NET EFFECT ON
LOCAL FUNDS $38,999 $47,762 $47,762
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this legislation.
DESCRIPTION
The legislation would provide for certain veterans to obtain license plates
bearing the words "World War II Veteran" or "Korean War Veteran". An
additional fee of $15 would be charged.
The legislation would also require that only the initial payment of the
additional fee for "Purple Heart Medal" license plate need be paid.
Presently, the additional fee is charged each time at registration.
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
This Fiscal Note is not an official copy and should not be quoted or cited.