FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 08:33 PM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1695 |
Introduced |
HB4280 |
|
|---|
| CBD Subject: |
Natural Resources |
|---|
|
FUND(S):
3200
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of the proposed legislation is to allow resident West Virginia Veterans with a combined disability of 50 percent or greater the ability to purchase a lifetime combination hunting and fishing license at 50% of standard adult cost. In addition, the qualifying veteran would receive a tax credit in the amount of purchase to offset the cost of $402.50.
We estimate that 2,317 Veterans would utilize this benefit resulting in a first-year loss of $81,095.00 in license sales. The second year this loss decreases to $13,015.75 due to the ability to withdraw interest on the lifetime license principal. However, it is estimated that 26 new veterans each year will avail themselves of this benefit, increasing the deficit in license sales by $907.74 per year for a total loss of $13,923.49 during the second year. After a period of 15 to 25 years, we believe the lost license revenue would start to decrease as the lifetime license holders pass age 65 and would no longer be expected to purchase an annual license.
There is also an expected cost to the General Tax Revenue of the state of WV for providing the tax credit for $402.50. The estimates of this impact to the costs and revenues of the State would best be estimated by the WV State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 |
-81,095 |
-13,923 |
Explanation of above estimates (including long-range effect):
Est. # of current WV Veterans 137,000 WV Veterans Admin 2019
Est.# of 50% or greater disabled veterans in West Virginia 21,057 WV Veterans Admin 2019
Est. WV participation rate in hunting and/or fishing 22% US Fish and Wildlife Survey 2011
Est. # of eligible veterans who hunt and/or fish 4,633
Est. # of veterans who would purchase product (50%) 2,317
Approximate # of new WV veterans each year 1,534 WV Veterans Admin. pers. com.
Percentage of veterans 50% or greater disabled 15% Based on current WV percentages
Yearly eligible veterans 236
Est. # of new eligible veterans who hunt and/or fish
(236 X 22% participation rate) 52
Est. # of new veterans who would purchase product (50%) 26
Estimated license revenue lost in first year
(2,317 X -$35) -$81,095.00
Interest earned per ½ lifetime license
($402.50X 7.3%) $29.38
Interest earned second year
(2,317 X $29.38) $68,079.25
Memorandum
For additional information concerning this fiscal note, please contact:
Zack Brown
304-352-5126
zack.j.brown@wv.gov
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov