FISCAL NOTE
Date Requested: January 12, 2018 Time Requested: 12:31 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1692 |
Introduced |
SB263 |
|
CBD Subject: |
Governor -- Bills Requested By |
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|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide a date after which no further Film Tax Credits will be issued, while allowing tax credits issued prior to a certain date to be grandfathered, and winding up the operations of the WV Film Office.
According to our interpretation, passage of this bill would result in all operations of the West Virginia Film Office to cease effective July 1, 2018. The Division of Tourism would settle, finalize and conclude business related to outstanding film credits issued prior to this date.
Based on recent trends, passage of this bill will result in a minimal increase to the General Revenue Fund in FY2019 and gradually rising to a peak of roughly $3 million to $4 million by FY2021 at the latest. Current law allocates up to $5 million per year in tax credits for qualified film production. The total amount allotted in most years tends to fall below the cap. In addition, there is significant delay between the allotment of tax credits and their utilization on tax returns given that most of these tax credits are sold to third parties.
No additional administrative costs would be incurred by the State Tax Department.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2018 Increase/Decrease (use"-") |
2019 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):
According to our interpretation, passage of this bill would result in all operations of the West Virginia Film Office to cease effective July 1, 2018. The Division of Tourism would settle, finalize and conclude business related to outstanding film credits issued prior to this date.
Based on recent trends, passage of this bill will result in a minimal increase to the General Revenue Fund in FY2019 and gradually rising to a peak of roughly $3 million to $4 million by FY2021 at the latest. Current law allocates up to $5 million per year in tax credits for qualified film production. The total amount allotted in most years tends to fall below the cap. In addition, there is significant delay between the allotment of tax credits and their utilization on tax returns given that most of these tax credits are sold to third parties.
No additional administrative costs would be incurred by the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov