FISCAL NOTE, 2007 LEGISLATIVE SESSION

FISCAL NOTE 2007-HB1174A

HB 1174 increase the maximum amount for which used motor vehicles may be sold or transferred to be exempt from excise tax.
    

The fiscal impact of HB 1174 is estimated based on data provided by the Division of Motor Vehicles. The division used actual data from the past twelve months to calculate the estimate (December 2005 through December 2006). Any transactions that were issued a title between $1,500 and $3,000 and were over 11 years old were counted (9,869 total transactions) and the dollar amounts were totaled for these transactions ($21,815,696). Thus an average price of $2,211 per vehicle was arrived at from these two numbers and the average tax paid per vehicle would be $66.32 when factoring a 3% tax rate. As a result, a total of $654,471 of revenue to the state would be lost if HB 1174 were to pass in the current form.

HB 1174

# of Transactions (12/05-12/06)     9,869

Total Dollar Amount of Sales $21,815,696

Average Sale Price per Vehicle     $2,211

Average Tax Paid (3% Tax)         $66.32

Total Revenue Lost             ($654,471)

(# of Transactions x Average Tax Paid)

Note: The system does not pick up a transaction if the same vehicle was transferred twice during the past 12 months. So, if a vehicle was transferred twice over the past year in the $1,500 to $3,000 range, the system would only pick it up once.