Compendium of Budget Information for the 2012 General Session
| Business, Economic Development, & Labor Appropriations Subcommittee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subcommittee Table of Contents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line Item: License Plates Production Function This line item accounts for materials and labor for the State Prison license plate production operation. Statutory Authority Utah Code 41-1a-1211 specifies the authority the Tax Commission possesses to impose a fee on the issuance and renewal of license plates. Intent Language Under Section 63J-1-603 of the Utah Code the Legislature intends that $4,562,000 appropriations provided for the Utah State Tax Commission in Item 72 Chapter 2, Laws of Utah not lapse at the close of Fiscal Year 2011. The use of any nonlapsing funds is limited to license plate production. Funding Detail Funding for this line item is generated soley through license plate fees. The fee per new license plate is $5, of which $1 goes to the Transportation Fund and $4 to cover the costs of producing the license plates. The largest expenditure in the License Plate Production line item stems from license plates & tags ($1,881,300 in FY 2011), with freight & drayage ($20,600), and postage & mailing ($12,600) Since September 2009, this line item has been running a structural deficit; In the 2010 General Session, and beginning in FY2011, an ongoing transfer of $258,000 of the revenues from License Plate Fund to the Motor Vehicle Division was made. This explains the larger than normal dip in License Plate revenues beginning on FY 2011. Expenses are greater than revenues going into the fund, and the existing balance will be drawn down at a more rapid pace than indicated in last year's report.  
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