Alternative energy.

09LSO-0225.L2

                                                         

CORRECTED COPY

FISCAL NOTE

 

FY 2010

FY 2011

FY 2012

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue (Decrease):

 

 

 

GENERAL FUND

(248,615)

(248,615)

0

LOCAL SOURCES FUND

(220,470)

(220,470)

0

 

Source of revenue decrease: Sales and use tax exemption on the sale or purchase of hybrid vehicles with a highway fuel consumption rating of not less than 40 miles per gallon for the period beginning July 1, 2009 and ending June 30, 2011.

 

Assumptions:

 

Only two models exceed this rating, the Honda Civic and the Toyota Prius. The average retail price of the two models is approximately $24,000 per Kelly Blue Book. Assuming a statewide average sales and use tax rate of 5.24%, the tax per vehicle is estimated at $1,257.60.

 

Based on information from a publication called “Hybridcars” there are .747 hybrid car sales per 1,000 people on a nationwide basis. With Wyoming’s population at approximately 500,000 residents, it is assumed there would be 373 hybrid car sales in Wyoming each year. 

 

The sales and use tax exemption on qualifying hybrids is estimated at $469,085 per year (373 x $1,257.60). The above decrease assumes a distribution of 53% to the General Fund and 47% to local governments.

 

This bill also creates a sales and use tax exemption on the sale or purchase of any motor vehicle powered exclusively by a “clean alternative fuel”, for the period beginning July 1, 2009 and ending June 30, 2011. The Department of Revenue has no information on the sale or purchase of vehicles fitting these criteria. Therefore, the fiscal impact of the exemption on “clean alternative fuel” vehicles is indeterminable.

 

This bill also creates a property tax exemption on any improvement to residential property to generate electricity from “renewable resources”, effective January 1, 2010. The decrease in property tax revenue from this exemption is indeterminable. However, this decrease in not expected to be significant in the next few years.

 

Prepared by:   Dean Temte, LSO    Phone: 777-7881

(Info. provided by Dan Noble/Marvin Applequist, DOR; 777-5220/5235)