COMMONWEALTH OF KENTUCKY LEGISLATIVE RESEARCH COMMISSION GENERAL ASSEMBLY LOCAL MANDATE FISCAL IMPACT ESTIMATE 2006 REGULAR SESSION 2005 INTERIM
MEASURE
2006 RS BR 1579 Amendment: Committee Floor
Bill #: HB 444 Amendment #
SUBJECT/TITLE AN ACT relating to foster families.
SPONSOR Rep Steve Nunn
MANDATE SUMMARY
Unit of Government: City; x County; x Urban-County
x Charter County x Consolidated Local
Program/ Office(s) Impacted: County Clerk
Requirement: x Mandatory Optional
Effect on Powers & Duties x Modifies Existing Adds New Eliminates Existing
PURPOSE/MECHANICS
HB 444 amends KRS 138.470 to exempt from the motor vehicle usage tax transfers of vehicle ownership between foster parents and foster children when the motor vehicle has been previously registered in Kentucky.
Under current law, the following entities are exempt from the motor vehicle usage tax upon transfer of ownership: (1) husbands and wives; (2) parent and child; (3) stepparent and stepchild; and (4) grandparent and grandchild. HB 444 would add another exemption to the list.
The motor vehicle usage tax is collected by the county clerk who receives three percent of the tax collected. A 6% usage tax is levied on the retail price of the motor vehicle.
FISCAL EXPLANATION/BILL PROVISIONS ESTIMATED COST
The fiscal impact of HB 444 on local governments is expected to be minimal. County Clerks would lose the three percent fee currently payable on the transfer of ownership of a motor vehicle between a foster parent and foster child.
It is not possible to identify how many foster parents would be likely to transfer ownership of a
Page 1 motor vehicle to a foster child. According to the Kentucky Cabinet for Health and Family Services, more than 6,800 children are in Cabinet for Health and Family Services foster care now. These children are in all age groups, and are in foster care placements in all Kentucky counties.
DATA SOURCE(S) Ky Cabinet for Families and Children, Department for Community Based Services web site.
PREPARER Dianna McClure REVIEW DATE
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