FISCAL NOTE
Date Requested: January 16, 2026
Time Requested: 01:58 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2229 |
Introduced |
HB4418 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, Municipal Business & Occupation or Privilege Tax Fund
Sources of Revenue:
General Fund Municipal Business and Occupation or Privilege Tax Fund
Legislation creates:
Creates New Fund: Municipal Business and Occupation or Privilege Tax Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to enact the Tax Efficiency Act of 2026, allowing municipal business and occupation or privilege taxes to be paid utilizing the statewide electronic data processing system network.
According to our interpretation of this bill, after July 1, 2026, municipal business and occupation tax payments may be remitted utilizing the statewide electronic data processing system network or an optional service that the Tax Commissioner may offer to municipalities. These payments would be deposited in a revolving fund known as the “municipal business and occupation or privilege tax fund”. The Tax Commissioner would create a process by which the statewide electronic data processing system may be utilized to facilitate administration of any municipal business and occupation tax, along with cost sharing by participating municipalities, through the timely sharing of such tax information among municipalities and the Tax Commissioner. The Tax Commissioner may offer municipalities an optional service, which would be a uniform computerized county and/or local business and occupation tax billing and accounting system using the values and taxpayer information generated through the statewide system. Each municipality using the optional service would be charged their share for use of the host computer and related services and materials, which charge would be paid by the municipality. Passage of this bill would have no impact on the General Revenue Fund.
Additional administrative costs to the State Tax Division would be $275,000 in FY2027 and $196,900 in subsequent fiscal years. All or part of this cost could be offset by fees charged to municipalities for collection of the Municipal B&O Tax depending on the number of municipalities who elected to have the State Tax Division collect the tax for them.
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 |
275,000 |
196,900 |
| Personal Services |
0 |
196,900 |
196,900 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
6,600 |
0 |
| Other |
0 |
71,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, after July 1, 2026, municipal business and occupation tax payments may be remitted utilizing the statewide electronic data processing system network or an optional service that the Tax Commissioner may offer to municipalities. These payments would be deposited in a revolving fund known as the “municipal business and occupation or privilege tax fund”. The Tax Commissioner would create a process by which the statewide electronic data processing system may be utilized to facilitate administration of any municipal business and occupation tax, along with cost sharing by participating municipalities, through the timely sharing of such tax information among municipalities and the Tax Commissioner. The Tax Commissioner may offer municipalities an optional service, which would be a uniform computerized county and/or local business and occupation tax billing and accounting system using the values and taxpayer information generated through the statewide system. Each municipality using the optional service would be charged their share for use of the host computer and related services and materials, which charge would be paid by the municipality. Passage of this bill would have no impact on the General Revenue Fund.
Additional administrative costs to the State Tax Division would be $275,000 in FY2027 and $196,900 in subsequent fiscal years. All or part of this cost could be offset by fees charged to municipalities for collection of the Municipal B&O Tax depending on the number of municipalities who elected to have the State Tax Division collect the tax for them.
Memorandum
The stated purpose of this bill is to enact the Tax Efficiency Act of 2026, allowing municipal business and occupation or privilege taxes to be paid utilizing the statewide electronic data processing system network.
The current statewide electronic data processing system is for State property taxes, which bears no relationship to municipal business and occupation taxes. It would be more practical for these taxes to be paid through our current tax processing system (GenTax) since significant programming fees would be incurred on another system.
This bill has no line numbers. Subsection (h) is amended so that timely payment is determined through postmark or remittance through the system. Recent United States Postal Service guidance on when a letter will be postmarked should be considered.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov