FISCAL NOTE

Date Requested: January 13, 2020
Time Requested: 12:36 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1370 Introduced HB4113
CBD Subject: Taxation


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Rod 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 stated purpose of this bill is to provide exemption for fuel used in power take off unit of a fuel delivery truck and allow refunds of all motor fuel taxes if fuel is lost through casualty.
    
    Per our interpretation, the bill increases motor fuel tax exemptions or refunds in three areas. The bill exempts fuel used in power take-off units in fuel delivery trucks. The bill also expands the refund of taxes for loss through evaporation or casualty to include the variable rate. As there is no internal effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease State Road Fund collections by at least $150,000 in FY2021 and subsequent fiscal years.
    
    Additional administrative costs incurred by the Tax Department would be $20,000 in FY2021 and in subsequent fiscal years.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 20,000 20,000
Personal Services 0 20,000 20,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -150,000 -150,000


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


    Per our interpretation, the bill increases motor fuel tax exemptions or refunds in three areas. The bill exempts fuel used in power take-off units in fuel delivery trucks. The bill also expands the refund of taxes for loss through evaporation or casualty to include the variable rate. As there is no internal effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease State Road Fund collections by at least $150,000 in FY2021 and subsequent fiscal years.
    
    Additional administrative costs incurred by the Tax Department would be $20,000 in FY2021 and in subsequent fiscal years.
    



Memorandum


    



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