FISCAL NOTE TO


[First Reprint]

ASSEMBLY, No. 789


STATE OF NEW JERSEY

 

DATED: JULY 2, 1996

 

      Assembly Bill No.789 (1R) of 1996 requires the Director of the Division of Motor Vehicles (DMV) to permit the owner of a new passenger automobile or noncommercial truck to register such new vehicle as a replacement for the unexpired term of a previously registered passenger automobile or noncommercial truck which the owner subsequently sells or transfers.

      In a previous estimate for a similar proposal, Assembly Bill No. 812 of 1994, DMV estimated that about 85,000 transactions would be affected. Assuming six months of registration remains on the vehicle which the owner sells or transfers, DMV would forgo half of the revenue attributable to vehicle weight, FAIR act, reflectorized license plate, and air ambulance fees, all of which are part of the total vehicle registration fee. These forgone fees, estimated at $3.5 million, would be offset by about $382,000 from a fee of $4.50 imposed on each vehicle replacement request. DMV also cited one-time costs of $250,000 to modify its information and data processing systems.

      The Office of Legislative Services notes that the FAIR act fee will begin to decrease on January 1, 1997. By January 1, 2000, the FAIR act fees for passenger automobiles and noncommercial trucks will be about one-half of their current amounts. Consequently, the DMV estimated annual revenue loss of about $3.1 million would gradually decrease to about $2.1 million by FY 2001.

 

This fiscal note has been prepared pursuant to P.L.1980, c.67.