COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3802-01

Bill No.: SB 1043

Subject: Licenses - Motor Vehicle; Revenue Dept.

Type: Original

Date: February 16, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Highway Fund $501,656 $601,988 $601,988
Total Estimated

Net Effect on Other

State Funds

$501,656 $601,988 $601,988



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $167,219 $200,663 $200,663




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Revenue (DOR) assume this proposal could have fiscal impact on their agency. This proposal requires all existing specialty plate applications (excluding military specialty license plates) to pay $25 (a net increase of $10 per set). Currently, there are approximately 160,530 specialty plates on the General Registration System (GRS). As approximately 50% of applicants choose biennial registration, the anticipated revenue from this increase is $802,650 per year.



FY 05 (10 months) Income

66,888 plate applications * $10 increase $668,880



FY 06 Income

80,265 plate applications * $10 increase $802,650



FY 07 Income

80,265 plate applications * $10 increase $802,650









ASSUMPTION (continued)



According to the Missouri Constitution, this revenue is to dispersed in the following manner:



State Road Fund 75%

Cities 15%

Counties 10%



This proposal would increase Total State Revenue.





FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
HIGHWAY FUND
Income-DOR
License Plate Fee $501,656 $601,988 $601,988
NET ESTIMATED EFFECT ON HIGHWAY FUND



$501,656


$601,988


$601,988




FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
Income-Cities
License Plate Fee $100,331 $120,398 $120,398
Income-Counties
License Plate Fee $66,888 $80,265 $80,265
NET ESTIMATED EFFECT ON LOCAL FUNDS



$167,219


$200,663


$200,663


FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.











DESCRIPTION



This proposal creates a review process and stated criteria for the development of specialty license plates. It also raises specialty plate fees to $25.00.



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









Mickey Wilson, CPA

Director

February 16, 2004