SB 0174 - Fiscal Note

Fiscal Note - SB 0174 - Requires motor vehicle license renewal tabs to be placed inside the vehicle

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0560-02

BILL NO.: SB 174

SUBJECT: Motor Vehicle License and Registrations

TYPE: Original

DATE: January 25, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Highway Fund	($328,179)	($321,300)	($327,726)
Total Estimated Net Effect on All State Funds	($328,179)	($321,300)	($327,726)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Revenue (DOR) contacted the Missouri Department of Corrections (DOC) to determine the cost for an inside front and rear window set of "tabs." The DOC estimated that 1" by 1" inside tabs (the size of the current outside plate tabs) would cost approximately $.20 per set. Since this proposal is not specific to the size of the tab that would be required for inside tabs, this fiscal estimate is based on the current size. Currently, the cost of the outside plate tabs is $.13 per set. The Motor Vehicle Bureau (MVB) would incur and additional $.07 per set of inside window tabs. According to the DOC the cost difference is based on the different type of adhesive that would have to used for inside window stickers. The DOR assumes if larger tabs were required, the cost for tabs would increase accordingly.

The MVB assumes they will order 4,500,000 sets of tabs in FY 2000 to be placed on motor vehicle license plates for FY 2001. The MVB assumes a 2% growth rate per year based on previous year statistics. Therefore, the MVB estimates increased costs due to purchasing inside tabs would be $315,000 in FY 2000, $321,300 in FY 2001, and $327,726 in FY 2002. In addition, the MVB would incur costs of $13,179 in FY 2000 for procedures, forms, and postage.

The MVB assumes the intent of this legislation is to decrease the number of stolen tabs in Missouri. Statistics from the state of Texas, indicates that stolen tabs will decrease by approximately 50%. The DOR assumes the savings is minimal and would not offset the cost increase for the new tabs.

The Department of Transportation and the Department of Public Safety - Missouri Highway Patrol assume they would not be fiscally impacted by this proposal.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
HIGHWAY FUND
Cost - DOR
Forms - printing and postage	($13,179)	$0	$0
Plates and tabs	($315,000)	($321,300)	($327,726)
Estimated Net Effect on
HIGHWAY FUND	($328,179)	($321,300)	($327,726)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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

This act requires that after January 1, 2000, Motor Vehicle License plate renewal stickers shall be placed in the windshield and rear window.

The act also combines two different previously enacted versions of Section 301.130, RSMo.

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 Transportation

Department of Public Safety - Missouri Highway Patrol

Jeanne Jarrett, CPA

Director

January 25, 1999