FISCAL NOTE
Date Requested: February 06, 2020 Time Requested: 02:09 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1856 |
Introduced |
HB4733 |
|
CBD Subject: |
Economic Development |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
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 extend tax credits for certain tourism development and expansion projects authorized under the West Virginia Tourism Development Act. The bill also limits eligibility.
According to our interpretation, use of the Tourism Development Credit would be subject to additional eligibility requirements. Under the provisions of the bill, a credit applicant cannot receive further tax credits until all annual reports have been submitted. A company applying for the Tourism Credit that owns or is owned by a controlling interest in another company operating in West Virginia that is not in compliance with state and federal laws is prohibited from being an eligible taxpayer for this credit. Further, to avoid the appearance of a conflict of interest and undue influence over receipt of tax credits, no company owned by a state-wide elected or appointed official that oversees, directs or supervises the State Development Office would be eligible for a tax credit. Passage of this bill would have no significant impact on revenues.
Additional administrative costs incurred by the State Tax Department would be $25,000 in FY2021 and thereafter.
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 |
25,000 |
25,000 |
Personal Services |
0 |
25,000 |
25,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, use of the Tourism Development Credit would be subject to additional eligibility requirements. Under the provisions of the bill, a credit applicant cannot receive further tax credits until all annual reports have been submitted. A company applying for the Tourism Credit that owns or is owned by a controlling interest in another company operating in West Virginia that is not in compliance with state and federal laws is prohibited from being an eligible taxpayer for this credit. Further, to avoid the appearance of a conflict of interest and undue influence over receipt of tax credits, no company owned by a state-wide elected or appointed official that oversees, directs or supervises the State Development Office would be eligible for a tax credit. Passage of this bill would have no significant impact on revenues.
Additional administrative costs incurred by the State Tax Department would be $25,000 in FY2021 and thereafter.
Memorandum
The stated purpose of this bill is to extend tax credits for certain tourism development and expansion projects authorized under the West Virginia Tourism Development Act. The bill also limits eligibility.
Pursuant to passage of SB 2001 in the 2019 Second Special Session, effective December 16, 2019, W. Va. Code ยง5B-2E-11 was amended to include language that the State Development Office would not accept any new project application after December 31, 2025 and that all applications submitted prior to January 1, 2026, that have been previously approved or not approved would be considered not approved and would be null and void as of January 1, 2026. This bill uses the pre-SB 2001 language which made the application deadline December 31, 2019 and the null and void date January 1, 2020.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov