FISCAL NOTE

Date Requested: March 01, 2021
Time Requested: 11:30 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1498 Introduced HB2808
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:





Fiscal Note Summary


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


The stated purpose of this bill is to exempt salt produced for human consumption from severance taxation. This bill would modify the definition of natural resources by excluding salt produced solely for human consumption as food from the classification of a mineral subject to the severance tax. According to tax return data, severance tax collections from salt production associated with use as a food additive have been $0 in recent years. The provisions of this bill would preclude imposition of Severance Tax on such activity. Administrative costs incurred by the Tax Department would be minimal in FY2022. 



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
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):


This bill would modify the definition of natural resources by excluding salt produced solely for human consumption as food from the classification of a mineral subject to the severance tax. According to tax return data, severance tax collections from salt production associated with use as a food additive have been $0 in recent years. The provisions of this bill would preclude imposition of Severance Tax on such activity. Administrative costs incurred by the Tax Department would be minimal in FY2022.



Memorandum






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