FISCAL NOTE
Date Requested: January 18, 2024
Time Requested: 05:01 PM |
| Agency: |
Municipal League, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2574 |
Introduced |
HB4626 |
|
|---|
| CBD Subject: |
Municipalities |
|---|
|
FUND(S):
Municipal Business & Occupation Tax
Sources of Revenue:
Other Fund Municipal fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to repeal W. Va. Code §8-13-5 relating to the eliminating the municipal business and occupation tax. The total budgeted amount for all cities for budget line “305 Business and Occupation Tax” for the 2023-2024 fiscal year is $225,060,919. Actual collection numbers are not available. Repeal of §8-13-5 would decrease existing municipal revenues by at least this budgeted amount.
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Memorandum
The repeal of W. Va. Code §8-13-5 would result in a decrease to municipal revenues. Budgeted revenue from business and occupation tax is the largest municipal revenue source constituting 25% of budgeted revenue for all cities. For 54 cities, the business and occupation tax revenue accounts for 25% or more of their individual city budgets. 33 of those 54 are Class IV cities with populations of fewer than 2,000 people.
Person submitting Fiscal Note: Susan Economou
Email Address: seconomou@wvml.org