COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2546-01
BILL NO.: SB 607
SUBJECT: Licenses - Driver's, Military Personnel
TYPE: Original
DATE: January 14, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Highway Fund | ($15,134,693) | ($12,117,068) | ($12,117,068) |
| Railroad Grade Crossing Fund | ($156,375) | ($125,100) | ($125,100) |
| Total Estimated
Net Effect on All State Funds |
($15,291,068) to (Unknown) | ($12,242,168) to (Unknown) | ($12,242,168) to (Unknown) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | ($1,753,808) to (Unknown) | ($1,403,047) to (Unknown) | ($1,403,047) to (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Department of Revenue (DOR), Motor Vehicle Division (MVD) assumes this proposal exempts owners of vehicles who have been honorably discharged or are currently serving in the military from paying annual or biennial registration fees on any one non-commercial vehicle. DOR assumes that any resulting tasks from this proposal could be handled with existing resources.
However, in order to notify all individuals about this legislation, a flyer needs to be included with each renewal notice informing the applicant that if he or she submits proof of retirement, or proof of active status, from any branch of the military, the registration fee will be eliminated. The Motor Vehicle Bureau will require $10,775 for forms revisions and postage in FY01 and $9,315 in FY02 and 03. The proposed legislation also requires modifications to the FASTR system. These programming modifications include edits to the fee subsystem for "free" registrations, edits to ensure registrants who own multiple vehicles only receive one "free" registration each year, and testing documentation. The current FASTR vendor, Revenue Systems, Incorporated, anticipates it will take approximately 903 hours of programming to complete these modifications. The current contracted hourly programming cost is $150 per hour, for a total cost of $135,450.
Revenue Impact
Special note: the below calculations include the loss in revenue for veteran registrations only. The motor vehicle bureau could not determine the number of active military personnel that this would affect. Therefore, the revenue loss shown is the very minimum impact this proposal will have.
The Veteran's Commission indicated there are approximately 556,000 veterans in Missouri. DOR assume that 90% of these individuals would own a registered vehicle and be eligible for a free registration, resulting in approximately 500,400 free registrations. DOR also assumes that of these, 4% will also be exempt from the $15 personalized plate or special plate fee, equaling about 20,016 additional personalized plate exemptions.
The average registration fee for a passenger registration is $25.75, while the average registration fee for a truck is $28.25. These averages excludes the $.25 Railroad Grade Crossing fee. The personalized plate or special plate fee is $15 each year in addition to regular registration fees.
ASSUMPTION (continued)
Based on the number of passenger and truck registrations statewide, DOR assumes that 74% of the free registrations will be passenger and 26% will be trucks. Because these are "free" registrations, and Senate Bill 19 from last year provides the option of biennial registration, the MVB assumes that all individuals offered the biennial registration would take advantage of that option the first year. Accordingly, 50% of the applicants will be offered biennial registration in FY01 and 50% in FY02. The calculated loss in registration fees is as follows:
FY 01
Highway Fund ($15,134,693)
Cities ($ 1,028,447)
Counties ($ 725,361)
RR Grade Crossing ($ 156,375)
FY 02 & 03
Highway Fund ($12,107,753)
Cities ($ 822,758)
Counties ($ 580,289)
RR Grade Crossing ($ 125,100)
Official of the Department of Transportation (MoDOT) concur with the Department of Revenue's response to this legislation.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(10 Mo.)
HIGHWAY FUND
Cost - Department of Revenue (DOR)
Forms and postage ($10,775) ($9,315) ($9,315)
FASTR programming by RSI ($135,450) $0 $0
Total Costs - DOR ($146,225) ($9,315) ($9,315)
Loss - registration fees - retired military ($15,134,693) ($12,107,753) ($12,107,753)
Loss - registration fees - active military (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
HIGHWAY FUND ($15,280,918) ($12,117,068) ($12,117,068)
to to to
(Unknown) (Unknown) (Unknown)
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(Continued) (10 Mo.)
RAILROAD GRADE CROSSING
FUND
Loss - registration fees - retired military ($156,375) ($125,100) ($125,100)
Loss - registration fees - active military (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
RAILROAD GRADE CROSSING ($156,375) ($125,100) ($125,100)
FUND to to to
(Unknown) (Unknown) (Unknown)
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
(10 Mo.)
POLITICAL SUBDIVISIONS
Loss - Cities ($1,028,447) ($822,758) ($822,758)
Loss - Counties ($725,361) ($580,289) ($580,289)
ESTIMATED NET EFFECT ON
CITIES AND COUNTIES ($1,753,808) ($1,403,047) ($1,403,047)
to to to
(Unknown) (Unknown) (Unknown)
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The proposal exempts members (either currently serving or honorably discharged) of the U.S. armed forces, Coast Guard, Merchant Marine, and Missouri National Guard from paying the annual or biennial registration fees on one non-commercial vehicle owned by such person. The person must still pay all other fees and present other documents required for registering the motor vehicle.
DESCRIPTION (continued)
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
This proposal would affect Total State Revenues.
SOURCES OF INFORMATION
Department of Revenue
Department of Transportation
Jeanne Jarrett, CPA
Director
January 14, 2000