Fiscal Note - SB 0334 - Licensing of Vehicles: Fee Agents; Commercial Registration
L.R. NO. 1175-02
BILL NO. SB 334 with HCA #1 and HA #4
SUBJECT: Motor Vehicles: Fees-Licenses
TYPE: Original
DATE: May 7, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Highway Fund ($119,861) ($37,229) ($25,303)
Total Estimated
Net Effect on All
State Funds ($119,861) ($37,229) ($25,303)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
ASSUMPTION
Staff from the Department of Corrections (DOC) would not expect any fiscal
impact as a result of this proposal.
Officials from the Department of Revenue (DOR), Motor Vehicle Bureau (MVB )
stated that in FY96 the MVB Central Office processed 607,157 transactions.
DOR estimates a rejection rate of 25% of these applications for FY98 for the
additional fee, rejects are expected to reduce to 15% in FY99 and 10% in
FY2000. To handle the additional rejects DOR requested 5 FTE examiner clerks
in FY98, 3 FTE in FY99 and 2 FTE in FY2000.
The provisions of this proposal provide the fees for commercial motor
vehicles, trailers, semitrailers, and driveway vehicles, other than those
operated under the Highway Reciprocity Agreement, be payable not later than
the last day of February of each year. Currently, the fee is due the last
day of December of each year. With the redesign of the new Missouri license
plate, the plate advisory committee decided to print the month of December on
these plate types. The Department of Revenue has 608,680 license plates
already printed with the expiration month on it. DOR will be required to
place a February tab over the month of December on the plate resulting in a
license plate tab cost in FY98 of $85,215.
Oversight assumes that DOR's estimate of the percentage of registrations
which would be rejected annually is high based on the assumption that
instructions, forms, etc., are mailed to applicants explaining what documents
and fees are required prior to making application for registration.
Oversight would not anticipate an appreciable increase in rejections due to
this legislation, therefore five (5) examiner clerks and related expense and
equipment have not been included in the note.
For purposes of this fiscal note, Oversight has reduced DOR's request to the
following: License Plate Tabs $85,215, policies, forms, and postage at
$34,646 for FY98, $37,229 for FY99, and $25,303 for FY2000. Should workloads
increase more than Oversight anticipates, DOR could request additional
resources through decision items in the normal budget process.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(6 Mo.)
HIGHWAY FUND
Cost: Department of Revenue (DOR)
Expense and Equipment ($119,861) ($37,229) ($25,303)
ESTIMATED NET EFFECT ON
HIGHWAY FUND ($119,861) ($37,229) ($25,303)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(6 Mo.)
0 0 0
FISCAL IMPACT - Small Business
Small businesses would pay increased fees for registering motor vehicles as a
result of this proposal.
DESCRIPTION
The proposed legislation would increase the fees charged by the Department of
Revenue (DOR) fee offices for motor vehicle, driver's license and marine
transactions. All fee agent offices would be required to display a sign
which states that "the increased fees approved by the Missouri Legislature
and charged by this fee office were requested by the fee agents." DOR
indicated the fee offices would be responsible for expenses incurred for
signs required by this legislation. The fee schedule would be as follows:
Until 01/01/98 After
01/01/98 01/01/00 01/01/00
Motor Vehicle & Trailer Licenses $1.50 $2.00 $2.50
Title Application $1.50 $2.00 $2.50
Driver's License $2.00 $2.00 $2.50
Electronic Telephone
Transmission/Reception $2.00 $2.00 $2.00
The fees for Commercial Motor Vehicles, Trailers, semitrailers, and driveway
vehicles would be payable no later than the last day of February of each
year. (Currently, these fees are due the last day of December of each year).
Fee agents would be given an insurable interest in the stock of license
plates, license tabs, forms, and other documents held on behalf of the
Department of Revenue.
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
This Fiscal Note is not an official copy and should not be quoted or cited.