FISCAL NOTE

Date Requested: January 12, 2018
Time Requested: 10:55 AM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1887 Introduced HB3027
CBD Subject: Taxation


FUND(S):

Wildlife Services Fund (New)

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Creates New Program, Creates New Fund:



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    A $0.50/head tax on cattle established by HB3027 will generate Special Revenue funding used to support cooperative agreements with the USDA Animal and Plant Health Inspection Service (APHIS) Wildlife Services (WS) section for further coyote predation control efforts in WV. This tax is similar to the sheep and goat tax established under WV Code 7-7-6e for predator control programming.



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 12,300 12,300
Personal Services 0 12,300 12,300
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 123,000 123,000


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


    Annual revenue from the per-head tax established in HB3027 will vary, as it is affected by factors such as cattle population and owner participation. As with the sheep and goat tax, revenue collected by counties largely depends on willingness of owners to be forthcoming with reporting accurate property information on which the per-head assessment is calculated.
    
    Based on the language included in HB3027, any property owner who does not pay the fee will not be eligible for predator control services provided by USDA APHIS WS. In order to support this requirement, a great deal of data collection and reporting is required both at the county and state levels in order to provide USDA with up-to-date information on program participation. The expense noted above is an estimate of the cost of administering this program, with additional information provided in the 'Memorandum' section below.



Memorandum


    Due to the nature and purpose of this tax being closely related to the existing sheep and goat tax, it is recommended to incorporate the proposed cattle tax language into the same section of WV Code, and be permitted to utilize the same dedicated fund (Fund 1465 - Integrated Predation Management Fund) for ease and consistency of administration. Additionally, as with the sheep and goat assessment, the language "breeding age" should be included to set a measurable, consistent standard on cattle to be taxed.
    
    In recognition of the data tracking and reporting requirements from information submitted by counties to the WV Department of Agriculture, it is requested that an amount of not more than ten percent (10%) of annual revenue be utilized to support program administrative activities.
    
    Additionally, language should be included to compel counties to report participant information and remit assessments collected to the WV Department of Agriculture no later than ten (10) days after the end of each calendar month. This will ensure that revenue is deposited into the Wildlife Services Fund as promptly as possible and statewide information on cattle populations reported to USDA APHIS WS is up-to-date.



    Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
    Email Address: sgillispie@wvda.us