OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-484
AN ACT CONCERNING EMISSIONS AND DECIBEL LEVEL
TESTING FOR MOTOR VEHICLES AND THE TAXATION OF
CERTAIN MOTORCYCLES AND MOTORCYCLE MUFFLERS.
Primary Analyst: PM 4/22/22
Contributing Analyst(s): MR, EW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Department of Energy and
Environmental Protection
GF - Cost 162,479 162,479
State Comptroller - Fringe
Benefits
1
GF - Cost 25,323 25,323
Department of Motor Vehicles TF - Cost 2,000,000 -
2,500,000
None
Department of Motor Vehicles Auto Emissions
Inspection -
Revenue Gain
Up to
60,000
Up to
80,000
Department of Motor Vehicles GF - Revenue
Gain
3,050,000 4,100,000
Department of Motor Vehicles TF - Revenue
Gain
Up to
90,000
Up to
120,000
Resources of the General Fund GF - Revenue
Gain
Minimal Minimal
State Revenues GF&TF -
Uncertain
See Below See Below
Note: GF=General Fund; TF=Transportation Fund; GF&TF=General Fund & Transportation Fund
Municipal Impact: None
Explanation
Sections 1 & 2 eliminate the emissions test exemption for motorcycles
and establish a new noise inspection test for all motor vehicles that are
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.53% of payroll in FY 23. 2022SB-00484-R000623-FN.DOCX Page 2 of 3
subject to emissions inspection. These sections result in both upfront
costs for the Department of Energy and Environmental Protection
(DEEP) and the Department of Motor Vehicles (DMV) to establish the
program as well as ongoing inspection and late fee revenue, as
described below.
The bill requires DEEP to provide specific technical information to
DMV on 1) motorcycle emission control features and equipment and 2)
motor vehicle noise inspections, resulting in costs of up to $100,000 in
both FY 23 and FY 24 for a consultant and costs of $87,802 in both FY 23
and FY 24 for one new Environmental Analyst (inclusive of fringe
benefits). These costs are based on similar consultant services provided
to DEEP for noise impact assessments as well as on the requirement to
furnish technical standards for testing motorcycle emissions because,
unlike for light-duty vehicles, federal government regulations do not
provide these standards for motorcycles.
The bill results in a cost to DMV of between $2,000,000 and $2,500,000
in FY 23 to purchase the requisite decibel testing equipment and to
modify the department's information technology systems.
The bill permits DMV to establish two new fees, including 1) a fee of
up to $20 for each motorcycle emissions test, resulting in a revenue gain
of up to $60,000 in FY 23 and $80,000 in FY 24 for the Auto Emissions
Inspections Fund and 2) an additional fee of up to $20 for each noise
inspection, resulting in a revenue gain of approximately $1.35 million in
FY 23 and $1.8 million in FY 24.
2
The bill also requires DMV to assess a $20 late fee for both motorcycle
emissions inspections and decibel level inspections for all motor
vehicles. Collectively, and assuming that late fees are imposed at the
same rate as current emissions inspection late fees, these late fees are
anticipated to result in a revenue gain of approximately $1.7 million in
2
Most of the current $20 emissions fee is retained by DMV's emissions contractor to
cover costs of the program. The estimates shown here reflect DMV's share of the fee
and is based on registration and emissions data provided by the department. 2022SB-00484-R000623-FN.DOCX Page 3 of 3
FY 23 and $2.3 million in FY 24.
Section 3 creates new infractions for violating certain noise
provisions of the bill and, to the extent that offenders are fined, results
in potential minimal revenue.
Section 5 subjects the bill's motorcycle and noise inspection
requirements to certain civil penalties that DEEP may adopt through
regulation. Existing motor vehicle emissions statutes are currently
subject to these penalties; however, because DEEP has not adopted any
penalty schedule, this section is not expected to result in a fiscal impact.
Sections 8 & 9 increase to 50% the sales and use tax rate on
motorcycles and mufflers that exceed state noise limits. The revenue
impact of this provision is uncertain. To the extent the new rate does
not affect sales of affected items, there is a revenue gain to the GF and
STF. To the extent the increased tax rate results in lower sales volume,
there is a revenue loss to the GF and STF.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the number of vehicles
subject to testing, the terms of DMV's decibel testing contract, any civil
penalty scheduled adopted by DEEP, or as otherwise described above.