FISCAL NOTE

Date Requested: March 01, 2021
Time Requested: 11:39 AM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2908 Introduced SB489
CBD Subject: Roads and Transportation


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. Senate Bill 489 will return sales tax collected from contractors for materials used on highway construction and maintenance projects back to the West Virginia Division of Highways (DOH).



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
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 15,000,000 20,000,000


Explanation of above estimates (including long-range effect):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. No additional costs to the Agency should this bill pass. The revenue generated would refund DOH for sales taxes DOH are paying through current agreements with contractors.



Memorandum


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. As a State agency, we are exempt paying sales tax. However, for materials used on road construction or maintenance projects obtained through contractor agreements, there is sales tax included. SB 489 allows for the reimbursement of this tax to be deposited back into the State Road Fund. The amount will vary from year to year based on the amount of work contracted. The last reimbursement in 2017 was $11.3 million with the increase in expenditures due to the "Roads to Prosperity Program". DOH best estimate is $15 million to $20 million per year.



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov