FISCAL NOTE

Date Requested: January 26, 2023
Time Requested: 10:31 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3102 Introduced HB3013
CBD Subject: Boards and Commissions


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 authorize the creation of an EODD within Jefferson County and to authorize Jefferson County to levy a special district excise tax for the benefit of the development district. According to our interpretation, this bill would levy a special district tax for the benefit of the Hill Top House Hotel Economic Opportunity District which consists of eleven acres of land. The projected cost of the Hill Top House project is $150.0 million. According to various news reports, this construction project is expecting to employ 239 people. When the hotel is fully operational it is expected to have 135 full time employees. We cannot determine the amount of revenue generated for the proposed Jefferson County Economic Opportunity District due to passage of this bill. Additional administrative costs incurred by the State Tax Department would be $35,000 in FY2024.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2023
Increase/Decrease
(use"-")
2024
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 35,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 35,000 0
2. Estimated Total Revenues 0 0 0


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


According to our interpretation, this bill would levy a special district tax for the benefit of the Hill Top House Hotel Economic Opportunity District which consists of eleven acres of land. The projected cost of the Hill Top House project is $150.0 million. According to various news reports, this construction project is expecting to employ 239 people. When the hotel is fully operational it is expected to have 135 full time employees. We cannot determine the amount of revenue generated for the proposed Jefferson County Economic Opportunity District due to passage of this bill. As a tourism destination facility, this project likely qualifies for the Tourism Development Tax Credit, a program allowing a business to retain sales tax revenue increases to offset qualified development costs. The provision of this bill would permit the project to issue development bonds to finance construction that would be financed through future incremental sales tax collections. Additional administrative costs incurred by the State Tax Department would be $35,000 in FY2024.



Memorandum






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