FISCAL NOTE
Date Requested: March 02, 2021
Time Requested: 11:43 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2972 |
Introduced |
SB530 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
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 implement recommendations of the Legislative Auditor by establishing causes for revocation, cancellation, or suspension of a business registration certificate, directing means of notice and opportunity for cure, and specifying effective date.
According to our interpretation, the proposed legislation would create a new section of code which would expand on the Tax Commissioner’s authority to cancel, revoke, or suspend a business registration certificate. In addition, the legislation provides that individual and business entities shall file an annual business activity report with the Tax Commissioner. The requirement to file a business activity report is removed for any tax year in which the individual or business entity filed a tax return for any of the taxes, or fees, administered under the provisions of Article 10 of Chapter 11. If passed, the legislation would become effective July 1, 2021. Per our interpretation, the proposed legislation would have no impact on General Revenue Fund collections.
Additional administrative costs incurred by the Tax Department would be $60,000 in FY2022 and $45,000 in subsequent fiscal years.
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 |
60,000 |
45,000 |
| Personal Services |
0 |
45,000 |
45,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed legislation would create a new section of code which would expand on the Tax Commissioner’s authority to cancel, revoke, or suspend a business registration certificate. In addition, the legislation provides that individual and business entities shall file an annual business activity report with the Tax Commissioner. The requirement to file a business activity report is removed for any tax year in which the individual or business entity filed a tax return for any of the taxes, or fees, administered under the provisions of Article 10 of Chapter 11. If passed, the legislation would become effective July 1, 2021. Per our interpretation, the proposed legislation would have no impact on General Revenue Fund collections.
Additional administrative costs incurred by the Tax Department would be $60,000 in FY2022 and $45,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to implement recommendations of the Legislative Auditor by establishing causes for revocation, cancellation, or suspension of a business registration certificate, directing means of notice and opportunity for cure, and specifying effective date.
In sections, §11-12-5b(a)(3) and §11-12-5b(a)(4), the bill incorrectly references W.Va. Code §11-1-1 et seq. as the appropriate article of the code governing when “any tax of fee, additions to tax, penalties, or interest” becomes due and payable. That form of citation makes the reference to Article 1 of Chapter 11.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov