HB1641: relative to vessel registration fees.

HB 1641-FN - AS INTRODUCED

2022 SESSION

22-2347

08/10

HOUSE BILL 1641-FN

AN ACT relative to vessel registration fees.

SPONSORS: Rep. Trottier, Belk. 6

COMMITTEE: Resources, Recreation and Development

ANALYSIS

This bill changes the way vessel registration fees are computed.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2347

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to vessel registration fees.

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

1 Registration Fees; Boats RSA 270-E:5, I is repealed and reenacted to read as follows:

I. The registration fees for commercial, private, and pleasure vessels, including rentals and airboats shall be as follows:

(a) On each vessel offered for registration a sum equal to 18 mills on each dollar of the maker's list price for a current model year vessel,

(b) 15 mills on each dollar of the maker's list price for the first preceding model year vessel;

(c) 12 mills on each dollar of the maker's list price for the second preceding model year vessel;

(d) 9 mills on each dollar of the maker's list price for the third preceding model year vessel;

(e) 6 mills on each dollar of the maker's list price for the fourth preceding model year vessel; and

(f) 3 mills on each dollar of the maker's list price for the fifth preceding model year vessel and any model year prior thereto. In no event, however, shall the fee be less than $24.

2 Effective Date. This act shall take effect July 1, 2022.

LBA

22-2347

12/21/21

HB 1641-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to vessel registration fees.

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

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

Appropriation

$0

$0

$0

$0

Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Expenditures

$119,000

$0

$0

$0

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Other - Navigation Safety Fund

LOCAL:

Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Expenditures

Indeterminable

$0

$0

$0

METHODOLOGY:

This bill would change the boat registration fee structure from length based (length of boat) to value based (mills per maker’s list price, depending on year):

Current Fee Structure

Up to 16 Feet

$24

16.1 to 21 Feet

$34

21.0 to 30 Feet

$52

30.0 to 45 Feet

$72

45.1 Feet and Over

$92

Proposed Fee Structure*

Current Model Year Vessel

18 mills / Dollar of the Maker's List Price

First Preceding Year Model Vessel

15 mills / Dollar of the Maker's List Price

Second Preceding Year Model Vessel

12 mills / Dollar of the Maker's List Price

Third Preceding Year Model Vessel

9 mills / Dollar of the Maker's List Price

Fourth Preceding Year Model Vessel

6 mills / Dollar of the Maker's List Price

Fifth Preceding Year (and older) Model Vessel

3 mills / Dollar of the Maker's List Price

*Cannot be less than $24

This change would affect both the state process and boat agents. As the registration system is reprogrammed to accommodate this change, vendors who support the municipalities would need to update their system as well. The Department of Safety anticipates it would take 4-6 months to reprogram and roll this program out to all boat agents (however the bill’s effective date is July 1, 2022). The Department states this bill’s impact on revenue to the navigation safety fund in FY 2023 and each year thereafter is indeterminable as there is no mechanism for determining the difference in collections between the current and proposed fee structures, as currently the manufacturer’s list price is not captured for vessels registered. The Department states expenditures from the navigation safety fund would increase in the first year to accommodate system changes required for the new fee structure and data fields, along with testing and implementation. The Department estimates this to be a one-time cost of approximately $119,000, incurred in FY 2022. Lastly, some municipalities may see a reduction in revenue collected if off-line boat agents do not transfer to the on-line system. Also, municipalities who use vendor software may incur an expense for reprogramming to reflect this bill’s changes.

AGENCIES CONTACTED:

Department of Safety