Colorado Legislative Council Staff
STATE and LOCAL
REVISED FISCAL IMPACT
(replaces fiscal impact dated January 8, 1999)
Drafting Number: Prime Sponsor(s): |
LLS 99-0236 Sen. Dyer |
Date: Bill Status: Fiscal Analyst: |
April 1, 1999 Senate Appropriations Scott Nachtrieb (303-866-4752) |
TITLE: CONCERNING PRORATED REGISTRATION FOR SPECIAL MOBILE MACHINERY.
Fiscal Impact Summary |
FY 1999/2000 |
FY 2000/2001 |
State Revenues Cash Fund |
Potential HUTF Fee Decrease |
Potential HUTF Fee Decrease |
State Expenditures Cash Fund |
$156,400 |
|
FTE Position Change |
0.0 FTE |
0.0 FTE |
Other State Impact: TABOR |
||
Effective Date: July 1 , 1999 |
||
Appropriation Summary for FY 1999-2000 Department of Revenue - Distributive Data Processing Fund - $156,400 |
||
Local Government Impact: Special registration fees - additional HUTF distributions. |
||
Summary of Legislation
The bill, as amended by the Senate Transportation Committee February 16, 1999, would allow a resident that owns special mobile machinery to receive a credit for machinery that is used out of state for a portion of a year. Non-resident special mobile machinery owners could receive a refund for the portion of the year that the machinery is not used in this state.
State Revenues
It is assumed that there is currently some tax avoidance for persons that may operate special mobile machinery in this state and do not register under current law. The credits and refunds for these motor vehicle registration fees may encourage those individuals to register the machinery in this state. This would increase registration fee collections. However, the amount of any increase revenue from increased compliance has not been estimated for this fiscal note.
In FY 1998-99, there was an estimated $797,247 generated from the registration of special mobile machinery to the HUTF. The amount of credits and refunds that may be requested is not known. It is estimated that the HUTF revenues generated from registration fees for special mobile machinery would be reduced.
State Expenditures
The Department of Revenue would be required to modify the computer programs used to calculate registration fees. It is estimated that changing the programs would require 2,300 hours. The changes that would be necessary include; modify renewal programs to calculate proper prorated fee, change fee distribution accounting system, add new fee field and distribution accounting system, allow county to county verification, and allow remote access to history file for more than 12 months. This would require $156,400 (2,300 hours X $68) in Distributive Data Processing Funds.
Local Government Impact
County Clerks have indicated that the amount of increased workload would be minimal and would not appear to require additional personal service resources. Cities and counties would lose revenue from the loss of registration fee revenue. Of the total revenue reduction, counties would lose 26 percent and cities would lose 9 percent.
State Appropriations
This fiscal note implies that the Department of Revenue would require a Distributive Data Processing Fund spending authority of $156,400 in FY 1999-00 to implement this bill.
Departments Contacted
Revenue
Omissions and Technical or Mechanical Defects
The bill amends registration fees. Partial year registrations would imply that the specific ownership tax (SO) would also be reduced. However, the bill does not address SO taxes. Allowing for proportional registration on registration fees and not SO taxes may result in legal actions by special mobile machinery owners. The registration fee would be prorated but the tax would not. SO taxes on special mobile machinery have generated approximately $9.3 million this fiscal year.