FISCAL NOTE
Date Requested: March 14, 2017 Time Requested: 01:31 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3184 |
Introduced |
HB3060 |
|
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 business and occupation tax on the production of electricity for two years.
According to the provisions of this bill, the tax imposed on Taxpayers who generate or produce electricity for sale, profit, or commercial use will increase from $22.78 per Kilowatt hour (kWh) to $24.33 per kWh for a two-year period. In the case of generation units, the flue gas desulfurization technology tax rate will increase from $20.70 per kWh to $22.10 per kWh. Passage of this bill is expected to result in an increase of roughly $8.0 million to the General Revenue Fund per year for a two-year period beginning after the effective date of this bill.
Additional administrative costs incurred by the State Tax Department would be $9,000 in FY2018.
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 |
9,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
9,000 |
0 |
2. Estimated Total Revenues |
0 |
8,000,000 |
8,000,000 |
Explanation of above estimates (including long-range effect):
According to the provisions of this bill, the tax imposed on Taxpayers who generate or produce electricity for sale, profit, or commercial use will increase from $22.78 per Kilowatt hour (kWh) to $24.33 per kWh for a two-year period. In the case of generation units, the flue gas desulfurization technology tax rate will increase from $20.70 per kWh to $22.10 per kWh. Passage of this bill is expected to result in an increase of roughly $8.0 million to the General Revenue Fund per year for a two-year period beginning after the effective date of this bill.
Additional administrative costs incurred by the State Tax Department would be $9,000 in FY2018.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov