SB178: relative to motor vehicle registration transfer credits.

SB 178-FN - AS INTRODUCED

2017 SESSION

17-0905

08/03

SENATE BILL 178-FN

AN ACT relative to motor vehicle registration transfer credits.

SPONSORS: Sen. Fuller Clark, Dist 21; Sen. Watters, Dist 4; Rep. Burton, Straf. 6; Rep. Wall, Straf. 6; Rep. O'Brien, Hills. 36

COMMITTEE: Transportation

ANALYSIS

This bill allows a refund for a vehicle registration transfer which shortens the registration period.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0905

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT relative to motor vehicle registration transfer credits.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Vehicle Transfer Fee. Amend RSA 261:66, IV to read as follows:

IV. Any person who owns a vehicle shall be entitled to transfer the vehicle registration on that vehicle to a leased vehicle and any person who leases a vehicle shall be entitled to transfer the vehicle registration on that vehicle to an owned or leased vehicle and shall be given the same credit for this transfer as for any transfer of ownership provided under paragraphs I-III of this section. The registration shall be processed to expire according to the formula set forth in RSA 261:62. If the transfer extends the expiration of the existing registration, pro-rated fees shall be charged for the additional months in the new registration period. [If the transfer shortens the registration period from the existing registration period, no refund shall be issued.] Any person who obtains a vehicle transfer pursuant to this paragraph shall be subject to the vehicle transfer fee.

2 Vehicle Transfer Fee. Amend RSA 261:150, III to read as follows:

III. Any person who owns a vehicle and transfers the registration on that vehicle to a leased vehicle, and any person who leases a vehicle and transfers the registration on that vehicle to an owned or leased vehicle shall be entitled to a credit for the permit fee in the same manner and subject to the same fee as provided in this section. The registration shall be processed to expire according to the formula set forth in RSA 261:62. If the transfer extends the expiration of the existing registration, pro-rated fees shall be charged for the additional months in the new registration period. [If the transfer shortens the registration period from the existing registration period no refund shall be issued.]

3 Effective Date. This act shall take effect July 1, 2017.

LBAO 17-0905

1/12/17

SB 178-FN- FISCAL NOTE

as introduced

AN ACT relative to motor vehicle registration transfer credits.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

Appropriation

$0

$0

$0

$0

Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Restricted Cost of Collections*

*Pursuant to Part II, article 6-a of the New Hampshire constitution, any costs associated with the collection and administration of Highway Funds by the Department of Safety shall be deducted by the Department before such funds are credited to the Highway Fund as unrestricted revenue.

LOCAL:

Revenue

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

METHODOLOGY:

This bill allows a refund for vehicle registration and permit fees in instances in which a transfer of vehicle ownership results in a shortened registration period. Currently, additional fees are charged when the expiration date of the registration period is extended, but no refund is issued when the transfer shortens the registration period. The Department of Safety states there were approximately 132,000 registration transfers in FY 2016. While it is unknown how many resulted in a shortened registration period, the majority are straight transfers with no change in expiration date. This bill will result in an indeterminable decrease in revenue to the extent refunds are issued and pursuant to RSA 235:23, not less than 12 percent of the total motor vehicle fee revenue collected in the previous year is distributed to municipalities by the Department of Transportation as highway block grants. Therefore, this bill would also result in a decrease in state highway fund expenditures and local revenues by an indeterminable amount in FY 2019 and each year thereafter.

Additionally, the Department of Safety anticipates an indeterminable increase in State and local expenditures for software programming, testing, and training to implement legislation. The Department estimates a one-time expenditure of $88,000 in FY 2018 for State programming changes.

AGENCIES CONTACTED:

Department of Safety