FISCAL NOTE
Date Requested: January 20, 2026
Time Requested: 02:57 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1328 |
Introduced |
HB4560 |
|
|---|
| CBD Subject: |
Natural Resources |
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|
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road 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 have the proceeds of fuel purchased at marinas and boat docks in this state be directed to the West Virginia Division of Natural Resources Law Enforcement Division.
According to our interpretation, the bill would divert fuel tax collections attributable to fuel purchased at marinas and boat docks in this state, which are intended for either commercial or personal use, to the West Virginia Division of Natural Resources Law Enforcement Division. No effective date is given in the bill; therefore, if passed, the legislation would become effective 90 days from passage.
Per our interpretation, based on available data, the legislation, if passed would reduce State Road Fund collections by up to $3.9 million per fiscal year beginning in FY2027.
Additional administrative costs incurred by the State Tax Department would be $78,700 in FY2027 and $49,550 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
78,700 |
49,550 |
| Personal Services |
0 |
49,550 |
49,550 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
27,500 |
0 |
| 2. Estimated Total Revenues |
0 |
-3,900,000 |
-3,900,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill would divert fuel tax collections attributable to fuel purchased at marinas and boat docks in this state, which are intended for either commercial or personal use, to the West Virginia Division of Natural Resources Law Enforcement Division. No effective date is given in the bill; therefore, if passed, the legislation would become effective 90 days from passage.
Per our interpretation, based on available data, the legislation, if passed would reduce State Road Fund collections by up to $3.9 million per fiscal year beginning in FY2027.
Additional administrative costs incurred by the State Tax Department would be $78,700 in FY2027 and $49,550 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to have the proceeds of fuel purchased at marinas and boat docks in this state be directed to the West Virginia Division of Natural Resources Law Enforcement Division.
W. Va. Code §11-14C-9(c) sets forth a refundable exemption for “(13) All gallons of motor fuel sold for use or used as a motor fuel for commercial watercraft.” Given that this is a refundable exemption, the new distribution is in direct conflict since the flat rate component of motor fuel excise tax this is collected for commercial watercraft is refundable to the consumer.
Further, the tax collected pursuant to Article 14C is already distributed to the State Road Fund in §11-14C-47; it would be helpful if the bill cross-referenced §11-14C-47(b) to resolve conflict.
Additionally, there is no designated fund for the collected moneys to be distributed to.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov