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COMMITTEE REPORT
March 29, 2006
S. 1200
S. Printed 3/29/06--S.
Read the first time March 1, 2006.
To whom was referred a Joint Resolution (S. 1200) to provide that in 2006 and 2007, the annual fee for the automobile manufacturer standard license plate for vehicles in such manufacturer's employee benefit program, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Notwithstanding the annual fee prescribed pursuant to Section 56-3-2332 of the 1976 Code for the standard license plate issued to an automobile manufacturer for vehicles used in a benefit program for the manufacturer's employees or for testing, distribution, evaluation, and promotion, the registration fee for applications filed in 2007 and 2008 is seven hundred sixty-one dollars. In accounting for the revenue of this fee for applications filed in 2007 and 2008, twenty dollars is credited to the general fund of the State and the amount required to be remitted to a local government is seven hundred forty-one dollars. The provisions of Joint Resolution 116 of 2003 applicable for these license plate fees in 2003 and 2004 are extended retroactively through 2006.
SECTION 2. This joint resolution takes effect January 1, 2007. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This JR is expected to reduce funds allocated to certain county jurisdictions by a total of $2,450 in FY 2005-06 and a total of $14,500 in FY2006-07.
Explanation
This bill sets the annual fee to obtain a "BM" license plate in this State at $761 for calendar years 2006 and 2007. This rate is a $5 reduction from a fee of $766, which is extended retroactively to 2005. Of this new fee, $20 goes to the general fund and the balance of $741 to the applicable county. These tags primarily apply to vehicles manufactured by BMW with the bulk of proceeds going to Greenville County. Tags are issued as new and/or biennial renewals at time of purchase.
Based on info from BMW and DMV, tags are issued throughout the year and have averaged about 2,950 plates in the past, three fiscal years. That level is expected to continue in FY 2005-06 and decline slightly by 50 to 2,900 tags in FY 2006-07. Since this bill is effective upon passage, the lower rate could reasonably apply to collections for two months in FY2005-06, prorated at 490 plates. Multiplying $5 times 490 yields $2,450. Thus, we expect adoption of this bill would lower funds allocated to counties by a total of $2,450 in FY2005-06 and, based on the above estimate of 2,900 registrations, by a total of $14,500 in FY2006-07. This bill would have no impact on state revenues, since there is no change in the portion allotted thereto.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO PROVIDE THAT IN 2006 AND 2007, THE ANNUAL FEE FOR THE AUTOMOBILE MANUFACTURER STANDARD LICENSE PLATE FOR VEHICLES IN SUCH MANUFACTURER'S EMPLOYEE BENEFIT PROGRAM AND FOR THE TESTING, DISTRIBUTION, EVALUATION, AND PROMOTION OF ITS VEHICLES IS SEVEN HUNDRED SIXTY-ONE DOLLARS, AND TO PROVIDE THAT TWENTY DOLLARS OF EACH FEE IS CREDITED TO THE GENERAL FUND OF THE STATE AND THE BALANCE TO LOCAL GOVERNMENTS AND TO EXTEND RETROACTIVELY TO 2005 THESE FEES AS ESTABLISHED IN JOINT RESOLUTION 116 OF 2003.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Notwithstanding the annual fee prescribed pursuant to Section 56-3-2332 of the 1976 Code for the standard license plate issued to an automobile manufacturer for vehicles used in a benefit program for the manufacturer's employees or for testing, distribution, evaluation, and promotion, the registration fee for applications filed in 2006 and 2007 is seven hundred sixty-one dollars. In accounting for the revenue of this fee for applications filed in 2006 and 2007, twenty dollars is credited to the general fund of the State and the amount required to be remitted to a local government is seven hundred forty-one dollars. The provisions of Joint Resolution 116 of 2003 applicable for these license plate fees in 2003 and 2004 are extended retroactively through 2005.
SECTION 2. This joint resolution takes effect upon approval by the Governor.
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