FISCAL NOTE

Date Requested: January 14, 2022
Time Requested: 10:32 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1327 Introduced HB4092
CBD Subject: Natural Resources


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local property tax revenue

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 property tax relief to rare earth industries. The bill is to be titled “Rare Earth Property Tax Industrial Development Act.” The bill provides for definitions. The bill creates valuation of certain rare earth business personal property. The bill creates an initial determination with a process for protest and appeal. Finally, the bill creates an effective date. The State Tax Department cannot quantify the revenue loss associated with this proposal. Currently, there is no rare earth industry in the State. However, at least one rare earth business is planned for development at this time. Rare earth elements are recovered as an incidental part of the mining and use of coal. The provisions of this bill would provide for valuation of qualified property at salvage value for purposes of taxation. It is unclear how the allocation of mining equipment will be treated under the provisions of this bill. Additional administrative costs to the State Tax Department and local governments cannot be readily determined.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
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):


The State Tax Department cannot quantify the revenue loss associated with this proposal. Currently, there is no rare earth industry in the State. However, at least one rare earth business is planned for development at this time. Rare earth elements are recovered as an incidental part of the mining and use of coal. The provisions of this bill would provide for valuation of qualified property at salvage value for purposes of taxation. It is unclear how the allocation of mining equipment will be treated under the provisions of this bill. Additional administrative costs to the State Tax Department and local governments cannot be readily determined.



Memorandum






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