COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0321-01
Bill No.: SB 117
Subject: Motor Vehicles; Licenses-Motor Vehicles; Revenue Dept.
Type: Original
Date: January 24, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
(Unknown)* | (Unknown)* | (Unknown)* |
* Unknown could exceed $100,000
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Highway Fund | (Unknown)* | (Unknown)* | (Unknown)* |
| Total Estimated
Net Effect on Other State Funds |
(Unknown)* | (Unknown)* | (Unknown)* |
*Unknown could exceed $100,000
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | (Unknown)* | (Unknown)* | (Unknown)* |
*Unknown could exceed $100,000
ASSUMPTION
Officials with the Department of Public Safety- Missouri State Highway Patrol assume this proposal would not have fiscal impact on their agency.
Officials with the Department of Revenue (DOR) assume this proposal could have fiscal impact on their agency; however, the effect is difficult to estimate. DOR assumes that this proposal broadens the definition of a driveaway operation to include "for the purpose of transporting vehicles from one place to another." This new definition could have unknown fiscal impact for the following reasons:
- Commercial Motor Vehicles could operate by paying the driveaway fee rather than the normal registration fee.
- Driveaway plates are not issued to a specific vehicle, therefore any vehicle could go from one location to another without requiring registration thereby not paying sales tax and registration fees.
-Towing vehicles could operate by paying the driveaway fee rather than the normal registration fees
ASSUMPTION (continued)
DOR assumes that any of the above examples could potentially cause a significant decrease in registration fees and sales tax. DOR further assumes that there could be an increase in cost for the additional driveaway plates and permits.
Oversight assumes there would not be additional cost associated with a different type of plate being issued.
Officials with the Department of Transportation (MoDOT) assume the fiscal impact of the proposal cannot be easily quantified, since it is difficult to determine how many people would realize that the legislation might permit them to license their vehicles at a reduced rate. The annual license fee for driveaway operation is $44.50. MoDOT assumes the broad language of the new provision could be interpreted to include almost any movement of a motor vehicle or trailer by a person other than a dealer over a public highway, as long as the vehicle is transported from one place to another. Therefore, under the proposed legislation, almost anyone could obtain a vehicle license for an annual fee of $44.50. MoDOT anticipates that this proposed statutory change could have a significant negative impact on its revenue, although the amount cannot be easily quantified.
This proposal could decrease total state revenue.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Income (Loss) | |||
| Decrease in Sales Tax* | (Unknown) | (Unknown) | (Unknown) |
| EFFECT ON GENERAL REVENUE | (Unknown) | (Unknown) | (Unknown) |
| *Unknown could exceed $100,000 | |||
| HIGHWAY FUND | |||
| Income (Loss) | |||
| Decrease in plate fees* | (Unknown) | (Unknown) | (Unknown) |
| EFFECT ON HIGHWAY FUND | (Unknown) | (Unknown) | (Unknown) |
*Unknown could exceed $100,000
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| Income-(Loss)- Cities | |||
| Decrease in plate fees** | (Unknown) | (Unknown) | (Unknown) |
| Decrease in sales tax* | (Unknown) | (Unknown) | (Unknown) |
| Total Income (Loss)-Cities | (Unknown) | (Unknown) | (Unknown) |
| Income (Loss)- Counties | |||
| Decrease in plate fees** | (Unknown) | (Unknown) | (Unknown) |
| Decrease in sales tax* | (Unknown) | (Unknown) | (Unknown) |
| Total Income (Loss)-Counties | (Unknown) | (Unknown) | (Unknown) |
| NET ESTIMATED EFFECT ON LOCAL FUNDS | (Unknown) | (Unknown) | (Unknown) |
| *Unknown could exceed $100,000 | |||
| ** Unknown not expected to exceed $100,000 | |||
FISCAL IMPACT - Small Business
This proposal could have direct fiscal impact to small businesses. A business which is dependent on vehicles could have reduced registration fees and sales tax.
DESCRIPTION
This proposal could expand the definition of a driveaway operation. This definition could allow driveaway plates or permits to be used for the purpose of transporting vehicles from one place or another.
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 State Highway Patrol
Mickey Wilson, CPA
Director
January 24, 2003