COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2758-01
Bill No.: SB 771
Subject: Boats and Watercraft; Licenses.
Type: Original
Date: February 4, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | (Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
| Total Estimated
Net Effect on All State Funds |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the Department of Revenue (DOR) states this proposal exempts boats under 24 feet with electric trolling motors from licensure requirements.
ADMINISTRATIVE IMPACT
DOR states that currently, their Motor Vehicle Bureau registers vessels based on the length. DOR states this proposal specifically addresses boats under 24 feet with the only means of propulsion being electric trolling motors. DOR cannot determine the number of vessels that this legislation would impact, and therefore assume the administrative impact to be unknown. DOR does assume they will have programming costs to the General Registration System, Field Automated System for Titling and Registration, Missouri Transportation Accounting System. DOR assumes the cost of these programming changes is unknown.
To implement this legislation, DOR will require additional funds. In the past, the programs included in this legislation have been paid for with highway funds. This year, however, highway funds may not be available for this purpose as a result of legislation enacted by the General Assembly in 2000 that limits the use of highway funds.
If highway funds are not available, then another source of funding must be identified to pay for the cost of implementing this legislation.
REVENUE IMPACT
DOR states the overall revenue impact is an unknown loss, however, the following fees would be affected:
Titling fees on these vessels will no longer be required. Current title fee is $7.50
Registration fee on these vessels will no longer be required. Current registration fees are:
Vessels under 16 ft. $10 (three year fee)
Vessels at least 16 ft but less than 26 ft. $20 (three year fee)
Sales Tax - Currently an individual is required to pay sales tax at the time of titling and registration of a vessel. If this proposal is adopted, an individual will no longer have to title or register their vessel, therefore, there would no longer be an avenue for sales tax collection when a vessel is sold from individual to individual. DOR assumes this would create an unknown loss in revenue.
ASSUMPTION (continued)
Officials from the Department of Public Safety - Missouri State Water Patrol state this proposal would not fiscally impact their agency.
Oversight assumes the Department of Revenue would not realize any costs or savings from this proposal. It would, however, realize a loss in revenue from not collecting the titling fees and registration fees from those boats 12ft. (current minimum on all vessels) to 24 ft. long with its only means of propulsion being an electric trolling motor. Currently, any watercraft having as the only means of propulsion a paddle or oars are not considered "vessels" and therefore, are not required to be registered and titled in Missouri. Oversight has no basis to make an estimate of how many such vessels currently exist in Missouri, so the loss in revenue to the General Revenue fund is assumed to be unknown.
According to the FY 2000 Comprehensive Annual Financial Report, the Department of Revenue collected $648,493 in Certification of Titling fees and $3,929,663 in Registration/Decal Fees in FY 2000. Oversight assumes the loss of revenue to the General Revenue Fund resulting from this proposal would be less than $100,000 in any given year.
Oversight assumes the owners of such vessels would adhere to the sales tax laws and would not result in a considerable reduction in sales tax revenue.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE | |||
| Loss - Department of Revenue
reduction in titling fee revenue |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
| Loss - Department of Revenue
reduction in registration fee revenue |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
| ESTIMATED NET EFFECT TO THE GENERAL REVENUE | (Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal exempts boats under 24 ft. with electric trolling motors from licensure requirements.
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 Public Safety
Missouri Water Patrol
Department of Revenue
Mickey Wilson, CPA
Acting Director
February 4, 2002