FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 01:22 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3181 Introduced HB3043
CBD Subject: Taxation


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 bill is to increase the corporation net income tax by 0.8% for two years. According to the provisions of this bill, for taxable periods beginning on or after July 1, 2017 and ending on June 30, 2019, the Corporation Net Income Tax rate would increase from the current rate of 6.5% to the proposed rate of 7.3%. Passage of this bill would result in a gain of roughly $13.4 million FY2018 and $15.7 million in FY2019. Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2018 and FY2019.



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 5,000 5,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,000 5,000
2. Estimated Total Revenues 0 13,400,000 15,700,000


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


According to the provisions of this bill, for taxable periods beginning on or after July 1, 2017 and ending on June 30, 2019, the Corporation Net Income Tax rate would increase from the current rate of 6.5% to the proposed rate of 7.3%. Passage of this bill would result in a gain of roughly $13.4 million FY2018 and $15.7 million in FY2019. Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2018 and FY2019.



Memorandum






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