Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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STATE FUND |
FY 2007* |
FY 2008 |
FUTURE YEARS |
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State Bureau of Motor
Vehicles Fund (Fund 4W4) |
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Revenues |
Potential gain, |
Potential gain, |
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Expenditures |
- 0 - |
Potential increase, |
Potential increase, |
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License Plate Contribution
Fund (Fund 5V1) |
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Revenues |
- 0 - |
Potential gain, |
Potential gain, |
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Expenditures |
- 0 - |
Potential increase, |
Potential increase, |
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Note: The state
fiscal year is July 1 through June 30.
For example, FY 2007 is July 1, 2006 – June 30, 2007.
* This analysis assumes that any fiscal effects created for
the state as a result of the bill will occur no earlier than FY 2008.
·
State Bureau of Motor Vehicles Fund (Fund 4W4). The bill requires the state's Registrar of Motor Vehicles to collect an additional fee
of $10 to compensate the Bureau of Motor Vehicles (BMV) for the additional
services required in the issuing of "Ohio's Horse" license plates,
and to deposit all such fees in the state treasury to the credit of the
existing State Bureau of Motor Vehicles Fund (Fund 4W4). As of this writing, LSC fiscal staff is unable
to estimate the demand and production costs for these license plates. This means that the potential annual
magnitude of the gain in Fund 4W4 license plate revenues and any related
increase in operating expenses is uncertain.
·
License Plate Contribution Fund (Fund 5V1). The bill requires the Registrar to collect a related contribution
in an amount not to exceed $40, and to deposit all such fees in the state
treasury to the credit of the existing License Plate Contribution Fund (Fund
5V1) for payment to the Ohio Coalition for Animals, Incorporated. As LSC fiscal staff is unable to estimate
the demand for these license plates, the amount of money that would be
collected and paid annually to the Ohio Coalition for Animals, Incorporated is
uncertain.
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LOCAL
GOVERNMENT |
FY 2007 |
FY 2008 |
FUTURE YEARS |
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Counties, Municipalities,
and Townships |
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Revenues |
Potential minimal effect |
Potential minimal effect |
Potential minimal effect |
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Expenditures |
- 0 - |
- 0 - |
- 0 - |
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Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
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Redistributed Public Safety revenues. Whenever the state's BMV Fund 4W4 cash flow changes, local
governments may also be affected in some manner. As BMV's expenses or revenue sources increase or decrease, moneys
available for redistribution to local governments may increase or
decrease. As of this writing, however,
the manner in which the bill may affect that cash flow dynamic, if at all, is
uncertain. That said, LSC fiscal staff
has not gathered any information suggesting that the potential magnitude of the
annual fiscal effect on any local government would be more than minimal, if
that. In this context,
"minimal" means an estimated annual revenue gain or loss of: (1) no more than $5,000 for any affected
county, city, or township with a population of 5,000 or more, and (2) no more
than $1,000 for any affected village or township with a population of less than
5,000.
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Overview
For the purposes of this fiscal analysis, the bill most notably:
· Permits an owner or lessee of certain cars or vehicles to apply to the state's Registrar of Motor Vehicles for issuance of "Ohio's Horse" license plates.
· Requires the Registrar to collect an additional fee of $10 to compensate the Bureau of Motor Vehicles (BMV) for the additional services required in the issuing of "Ohio's Horse" license plates, and to deposit all such fees in the state treasury to the credit of the existing State Bureau of Motor Vehicles Fund (Fund 4W4).
· Requires the Registrar to collect a related contribution in an amount not to exceed $40, and to deposit all such fees in the state treasury to the credit of the existing License Plate Contribution Fund (Fund 5V1) for payment to the Ohio Coalition for Animals, Incorporated.
State fiscal effects
The bill's fiscal effect on
the state, in particular the Department of Public Safety's Bureau of Motor
Vehicles and its Fund 4W4, as well as the License Plate Contribution Fund (Fund
5V1), will be dependent on the number of "Ohio's Horse" license
plates actually issued. As of this
writing, LSC fiscal staff is unable to estimate the demand and production costs
for these license plates. This means
that the potential annual magnitude of the gain in BMV's Fund 4W4 license plate
revenues and any related increase in operating expenses, as well as the amount
of moneys that would be collected and paid annually to the Ohio Coalition for
Animals, Incorporated, is uncertain.
Local fiscal effects
Redistributed Public Safety
revenues. Whenever the BMV Fund 4W4 cash flow changes,
local governments may also be affected in some manner. Most collected local and state motor vehicle
license taxes are deposited into a holding account within the Department of
Public Safety. Monthly, an assessment
of Fund 4W4 occurs and cash is transferred from the holding account to Fund 4W4
in order to cover BMV's monthly operating expenses. Any remaining funds in the holding account are then forwarded to
local governments (counties, municipalities, and townships) to use for
transportation related needs such as roads and bridges. As BMV's expenses or revenue sources
increase or decrease, moneys available for redistribution to local governments
may increase or decrease.
As of this writing, however,
the manner in which the bill may affect that cash flow dynamic, if at all, is
uncertain. That said, LSC fiscal staff
has not gathered any information suggesting that the potential magnitude of the
annual fiscal effect on any local government would be more than minimal, if
that. In this context, "minimal" means an
estimated annual revenue gain or loss of:
(1) no more than $5,000 for any affected county, city, or township with
a population of 5,000 or more, and (2) no more than $1,000 for any affected village
or township with a population of less than 5,000.
LSC fiscal staff: Joseph Rogers, Senior Budget Analyst