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SPONSOR: |
Heaton |
DATE TYPED: |
3/3/03 |
HB |
25/aHTRC |
||
SHORT TITLE: |
Tire Recycling Fees |
SB |
|
||||
|
ANALYST: |
Reynolds-Forte |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
** |
$750.0-850.0** |
$750.0-$850.0 |
Recurring |
Tire
Recycling Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
The Taxation and Revenue Department notes
that approximately 1.5 to 1.7 million vehicle registration transactions per
year include imposition of the tire recycling fee. There are some minor discrepancies between MVD reported
transaction counts and the revenue currently being distributed to the Highway
Infrastructure Fund, so a range estimate has been presented. Only about 3,300 of the transactions involve
buses (subject to a 25 cent per wheel fee increase), so virtually all of the
estimated 1.5 to 1.7 million transactions would be subject to a 50 cent
increase in the tire recycling fee.
** The FY03 revenue impact would depend
on the effective date of the fee increase (see Technical Issues).
Responses
Received From
Taxation
and Revenue Department
Environment
Department
SUMMARY
Synopsis
of HTRC Amendment
Synopsis
of Original Bill
HB
25 increases
the annual tire recycling fee imposed in conjunction with motor vehicle registrations
by $0.50 per year. For buses the fee is
increased by $0.25 per wheel. The
revenue attributable to the increase in the tire recycling fee is directed to
the Tire Recycling Fund and the existing fee amount would continue to go the
Highway Infrastructure fund. The fees
would be increased as follows:
Type
of Vehicle |
Current Tire Recycling
Fee |
Proposed Tire Recycling
Fee |
Motorcycles |
$0.50 |
$1.00 |
Passenger Vehicles |
$1.00 |
$1.50 |
Trucks, Truck, Tractors |
$1.00 |
$1.50 |
Buses |
$0.25 |
$0.50 |
|
|
|
Significant
Issues
The Environment Department notes that HB 25
would re-establish funding for implementing and administering provisions of the
Tire Recycling Act.
FISCAL IMPLICATIONS
HB25 would increase
the tire recycling fees, which will generate $750.0 to $850.0 additional
revenues annually to the Tire Recycling Fund.
The Tire Recycling Fund has had no source of revenue since the tire
recycling fee was redirected to the Highway Infrastructure Fund in 1999.
HB25 contains no
effective date; therefore, the revenues for FY03 and FY04 will be dependant
upon the date the bill becomes effective.
The current revenue
stream to the Highway Infrastructure Fund will be maintained. These fees are currently pledged for
repayment of highway improvement bonds.
ADMINISTRATIVE IMPLICATIONS
The
Environment Department says that this will allow personnel and activities
associated with implementation of the Tire Recycling Act to be funded using
tire recycling fees thus freeing general fund dollars to fill long-term
vacancies in the solid waste program .
Passage of the HB25 would have a positive impact on local
governments by providing a means of handling scrap tires and tire dumps where
no means currently exist. It would also
enhance tire recycling operations and extend the lives of municipal landfills.
TECHNICAL ISSUES
Taxation and Revenue
Department notes that the bill should include an effective date provision relating
to the fee increase. An effective date
of July 1, 2003 is suggested for all sections of the bill, but particularly for
Sections 1 through 5. An effective date
provision for Section 6 may be unnecessary since revenue can be distributed
only after being collected, but a July 1, 2003 effective date for Section 6
would serve to indicate the bill’s intent.
OTHER SUBSTANTIVE ISSUES
The Environment Department believes that passage of HB25 would provide the funds necessary to adequately implement and administer provision of the tire recycling regulations.