FISCAL NOTE
Date Requested: January 27, 2016
Time Requested: 11:30 AM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1800 |
Introduced |
SB351 |
|
|---|
| CBD Subject: |
Labor |
|---|
|
FUND(S):
General Revenue Fund, Infrastructure General Obligation Debt Service Fund
Sources of Revenue:
General Fund,Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to specify reduction of the amount of severance tax proceeds dedicated to the West Virginia Infrastructure General Obligation Debt Service Fund.
Based on our interpretation of the proposed bill, the annual amount of Severance Tax proceeds dedicated to the West Virginia Infrastructure General Obligation Debt Service Fund would vary dependent on the aggregate debt service each fiscal year. Under current law, the amount of Severance Tax dedicated annually to the Infrastructure General Obligation Debt Service Fund is set at $22.5 million. For FY2017, the amount of aggregate debt service is estimated to be slightly less than $22.1 million. The net gain to the State General Revenue Fund in FY2017 would be $444,387, an amount included in the Governor’s official revenue estimates. Given the year-to-year fluctuation, a table of annual aggregate debt services is provided on the following page. As of the current amortization chart, no year is expected to exceed the maximum amount of $22.25 million per the proposed legislation.
Fiscal Year Aggregate Debt Service
2017 $22,055,613
2018 $21,807,900
2019 $21,804,031
2020 $21,949,563
2021 $21,939,188
2022 $21,956,206
2023 $21,940,200
2024 $22,201,950
2025 $22,214,275
2026 $22,206,313
2027 $22,201,825
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Based on our interpretation of the proposed bill, the annual amount of Severance Tax proceeds dedicated to the West Virginia Infrastructure General Obligation Debt Service Fund would vary dependent on the aggregate debt service each fiscal year. Under current law, the amount of Severance Tax dedicated annually to the Infrastructure General Obligation Debt Service Fund is set at $22.5 million. For FY2017, the amount of aggregate debt service is estimated to be slightly less than $22.1 million. The net gain to the State General Revenue Fund in FY2017 would be $444,387, an amount included in the Governor’s official revenue estimates. Given the year-to-year fluctuation, a table of annual aggregate debt services is provided on the following page. As of the current amortization chart, no year is expected to exceed the maximum amount of $22.25 million per the proposed legislation.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov