FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 08:27 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1731 |
Introduced |
HB4275 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General 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 eliminate the West Virginia Greyhound Breeding Development Fund, redirect all moneys from the West Virginia Greyhound Breeding Development Fund to the State Excess Lottery Revenue Fund, and to eliminate requirements that applicants for video lottery and racetrack table game licensees must hold a dog racing license.
In addition to the items listed in the stated purpose, the bill also creates a tax credit for any state resident that adopts a greyhound dog acquired from a licensed greyhound breeder in this state, either directly from the licensed breeder or from a humane society or other non-profit organization promoting the adoption of displaced greyhounds. The one-time credit is only available for TY2024 and TY2025.
If the greyhounds currently housed at the greyhound tracks in the State were adopted by State residents with tax liabilities, there would be a cumulative loss of a maximum of $1.1 million spread between FY2025 and FY2026. However, the loss of revenue will be less than the maximum amount of $1.1 million. We have no information on how many greyhounds will be adopted by State residents with tax liability.
Additional administrative costs to the Tax Department would be $5,000 in FY2025 and FY2026.
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 |
5,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-562,500 |
-562,500 |
Explanation of above estimates (including long-range effect):
The bill creates a tax credit any state resident who adopts a greyhound dog acquired from a licensed greyhound breeder in this state, either directly from the licensed breeder or from a humane society or other non-profit organization promoting the adoption of displaced greyhounds. The one-time credit is only available for TY2024 and TY2025.
If the greyhounds currently housed at the greyhound tracks in the State were adopted by State residents with tax liabilities, there would be a cumulative loss of a maximum of $1.1 million spread between FY2025 and FY2026. However, the loss of revenue will be less than the maximum amount of $1.1 million. We have no information on how many greyhounds will be adopted by State residents with tax liability.
Additional administrative costs to the Tax Department would be $5,000 in FY2025 and FY2026.
Memorandum
The stated purpose of this bill is to eliminate the West Virginia Greyhound Breeding Development Fund, redirect all moneys from the West Virginia Greyhound Breeding Development Fund to the State Excess Lottery Revenue Fund, and to eliminate requirements that applicants for video lottery and racetrack table game licensees must hold a dog racing license.
The bill create a new tax credit for the adoption of greyhound dogs under §11-21-12n. The term “licensed greyhound breeder” is not defined. It is not clear that this tax credit is limited to those that are registered or licensed by the West Virginia Racing Commission. Also, “displaced greyhounds” is not defined. The term “acquired from a licensed greyhound breeder in this state” may be up to interpretation.
The bill does not state if the tax credit is one-time per taxpayer or one-time per adoption. There is no indication whether taxpayers must keep the dog for any amount of time to keep the tax credit.
The bill does not state if the tax credit is refundable or if it may be carried forward. There are no recapture provisions.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov