FISCAL NOTE

Date Requested: March 06, 2017
Time Requested: 10:40 AM
Agency: Budget Office, WV State
CBD Number: Version: Bill Number: Resolution Number:
1014 Introduced SJR5
CBD Subject: Constitutional Amendments, Roads and Transportation


FUND(S):

General Revenue Fund

Sources of Revenue:

General 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 resolution is to offer to the voters the opportunity to authorize the Legislature to issue and sell state bonds not exceeding the aggregate amount of $2 billion to be used for improvement and construction of state roads and bridges. If ratified the amendment provides a mechanism to repay the debt created through a levy on real property and public utility property in the state, not to exceed 20¢ per $100 of assessed value. If this amendment were approved by voters, the Legislature would be authorized to issue and sell state bonds not exceeding an aggregate amount of $2 billion for roads and bridges. The debt would be repaid by a levy on real property and public utility property in an amount not to exceed 20¢ per $100 of assessed value. At the maximum rate, this levy would result in $135.0 million for per year to repay the road bonds. Additional administrative costs would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 0 135,000,000


Explanation of above estimates (including long-range effect):


If this amendment were approved by voters, the Legislature would be authorized to issue and sell state bonds not exceeding an aggregate amount of $2 billion for roads and bridges. The debt would be repaid by a levy on real property and public utility property in an amount not to exceed 20¢ per $100 of assessed value. At the maximum rate, this levy would result in $135.0 million for per year to repay the road bonds. Additional administrative costs would be minimal.



Memorandum


The stated purpose of this resolution is to offer to the voters the opportunity to authorize the Legislature to issue and sell state bonds not exceeding the aggregate amount of $2 billion to be used for improvement and construction of state roads and bridges. If ratified the amendment provides a mechanism to repay the debt created through a levy on real property and public utility property in the state, not to exceed 20¢ per $100 of assessed value. Applying this additional tax to utility personal property but not to other personal property could lead to 4-R and other utility litigation.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov