FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 01:48 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3482 |
Introduced |
SB650 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
Medicaid State Share Fund
Sources of Revenue:
Other Fund Medicaid State Share 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 establish that a psychiatric hospital with an average annual inpatient census patient mix of greater than 95 percent of court-ordered forensic and civil involuntary commitments from state custody or from a state-owned hospital qualifies as a “state-designated facility” for purposes of the statute.
Per our interpretation, the bill would add a provision specifying that a licensed psychiatric hospital with an average annual inpatient census patient mix of greater than 95 percent of court-ordered forensic and civil involuntary commitments from state custody or from a state-owned hospital shall qualify as a “state-designated facility.” “State-designated facilities” are excluded from the definition of an “eligible acute care hospital” and, therefore, exempt from the additional tax imposed under W.Va. Code §11-27-38. State-owned licensed psychiatric facilities are already exempt from the tax.
A limited number of psychiatric hospitals in the state receive these types of psychiatric patients. State-owned facilities would already be exempt from the tax. Additionally, the tax rate imposed by W. Va. Code §11-27-38 is currently scheduled to decline over the next several years due to provisions of P.L. 119-21, the FY2025 Reconciliation Law, Section 71115 Provider Taxes. Conversely, according to NRI Inc’s Behavioral Health Performance Measurement System Report, from 2017 to 2025, patients in psychiatric hospitals with Forensic status increased 23 percent while the number of civil status patients decreased by 50 percent.
Pursuant to W. Va. Code §11-10-5d, because there are a limited number of taxpayers that would be affected by the provisions of this bill, a precise estimate of the bill’s fiscal implications cannot be released.
There would be no additional costs incurred by the State Tax Division.
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 |
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):
Per our interpretation, the bill would add a provision specifying that a licensed psychiatric hospital with an average annual inpatient census patient mix of greater than 95 percent of court-ordered forensic and civil involuntary commitments from state custody or from a state-owned hospital shall qualify as a “state-designated facility.” “State-designated facilities” are excluded from the definition of an “eligible acute care hospital” and, therefore, exempt from the additional tax imposed under W.Va. Code §11-27-38. State-owned licensed psychiatric facilities are already exempt from the tax.
A limited number of psychiatric hospitals in the state receive these types of psychiatric patients. State-owned facilities would already be exempt from the tax. Additionally, the tax rate imposed by W. Va. Code §11-27-38 is currently scheduled to decline over the next several years due to provisions of P.L. 119-21, the FY2025 Reconciliation Law, Section 71115 Provider Taxes. Conversely, according to NRI Inc’s Behavioral Health Performance Measurement System Report, from 2017 to 2025, patients in psychiatric hospitals with Forensic status increased 23 percent while the number of civil status patients decreased by 50 percent.
Pursuant to W. Va. Code §11-10-5d, because there are a limited number of taxpayers that would be affected by the provisions of this bill, a precise estimate of the bill’s fiscal implications cannot be released.
There would be no additional costs incurred by the State Tax Division.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov