FISCAL NOTE

Date Requested: February 27, 2019
Time Requested: 04:34 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2566 Comm. Sub. HB2703
CBD Subject: Taxation


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


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


The purpose of this bill is to remove the cap on the amount of tax that may be refunded to a dealer of petroleum products for gallons lost due to evaporation. According to our interpretation of this bill, the current 0.5% cap on Motor Fuel Tax refunds due to evaporation by retailers and bulk storage plants would be removed. The loss of revenue to the State Road Fund should be less than $50,000 in FY2020 and each year thereafter. Additional administrative costs incurred by the State Tax Department would be minimal in FY2020.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 500 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 500 0
2. Estimated Total Revenues 0 -50,000 -50,000


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


According to our interpretation of this bill, the current 0.5% cap on Motor Fuel Tax refunds due to evaporation by retailers and bulk storage plants would be removed. The loss of revenue to the State Road Fund should be less than $50,000 in FY2020 and each year thereafter. Additional administrative costs incurred by the State Tax Department would be minimal in FY2020.



Memorandum






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