Vehicle registration fees.

12LSO-0231.L2

                                                         

FISCAL NOTE

This bill contains an appropriation of $39,500,000 from the GENERAL FUND to the State Auditor.  This appropriation is effective immediately.

 

DETAIL OF APPROPRIATION

Agency #:  003     Agency Name:  State Auditor

Unit:  New

 

EXPENDITURE BY SERIES AND YEAR       FY 2012         FY 2013         FY 2014

0600  Grant & Aid Payments                                           $39,500,000

 

Total Expenditure Per Year:                                          $39,500,000

 

Grand Total Expenditure:           $39,500,000

Total Appropriated to Agency:      $39,500,000

Total Appropriated by Fund

GENERAL FUND             :         $39,500,000

 

Description of Appropriation:

The proposed legislation appropriates $39,500,000 from the GENERAL FUND to the State Auditor to reimburse counties for estimated decrease in revenue due to lowering annual county-based motor vehicle registration fees.

 

Assumption:

Payments to counties for decreased revenue in calendar year (CY) 2013 will be made by the State Auditor upon receiving and verifying county-submitted applications for reimbursement on or before February 1, 2014.  Reimbursement will be made subject to rates changed and decreased revenue occurring in (CY) 2013.

 

 

FY 2013

FY 2014

FY 2015

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue (Decrease):

 

 

 

COUNTY REGISTRATION FEES             

 

(6,500,000)

(13,000,000)

SCHOOL FOUNDATION FUND

 

(3,000,000)

(6,000,000)

 

 

 

 

Anticipated Expenditure Increase:

 

 

 

SCHOOL FOUNDATION FUND            

 

8,000,000

16,000,000

 

Source of Revenue (Decrease) and Expenditure Increase:

Motor vehicle owners will be required to pay lower county-based motor vehicle annual registration fees for vehicles seven (7) years and older.  This decrease in revenue by counties and the School Foundation Program in second half of FY 2013 and the first half of FY 2014 would be reimbursed by the State Auditor from appropriated GENERAL FUND monies. The revenue decrease shown for FY 2014 above is the decrease in registration fees in the last six months of FY 2014.  The School Foundation Program indicates a revenue decrease from recapture school districts, and the 12 mill county levy to the program, and expenditure increase for entitlement school districts.

Assumptions:

 

The estimated decrease in registration fee revenue, and requirements for reimbursement by the State Auditor into the future, is based on the following:

 

  1. Registration fees will be reduced by applying a decreasing 3% of vehicle factory price for motor vehicles 7 years and older (i.e. – vehicle age 6 years = 15% factory price percentage; age 7 years = 12%; age 8 years = 9%; age 9 years = 6%; and age 10 years or older = 3%);
  2. Though this bill would be effective immediately upon passage to allow the State Auditor and counties to prepare for the fee rate changes, the effective date of fee changes will be January 1, 2013 (middle of FY 2013);
  3. Estimates do not factor in when any vehicle meets the $5.00 minimum county fee;
  4. Counties will submit applications for reimbursement to the State Auditor on or before February 1, 2014 for CY 2013 revenue reimbursement.
  5. The State Auditor will make a biennial budget request prior to each budget session for the purpose of funding the payments anticipated under this bill and shall submit the request to the Governor.
  6. Does not include any county administrative or other costs to maintain records and submit applications to the State Auditor for reimbursement.

 

The estimated revenue decrease and required reimbursement will fluctuate from year to year depending on how many motor vehicles are registered age seven (7) years and older.  The proposed fee changes will apply to all vehicles registered at the county-level under W.S. 31-3-101(a)(i) as amended by this legislation, to include passenger vehicles, private trucks, etc.  This bill does not modify required state fees for motor vehicle registration.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:  Michael Swank, LSO           Phone:  777-7881

(Information provided by Mike Rowe, Wyoming State Auditor's Office, phone 777-6650; Kevin Hibbard and Debbie Lopez, Wyoming Department of Transportation, phone 777-4026 and 777-4714, respectively)