FISCAL NOTE
Date Requested: January 14, 2022
Time Requested: 12:29 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1078 |
Introduced |
SB105 |
|
|---|
| CBD Subject: |
|
|---|
|
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.
SB105 will return sales tax collected from contractors for materials used on highway construction and maintenance projects back to the Division of Highways.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
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.
As a State agency, the Division of Highways is exempt from paying sales tax. However, for materials used on road construction or maintenance projects obtained through contractor agreements, there is sales tax included. In essence, when the DOH pays contract invoices, we are paying sales tax for materials used.
This bill 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 as well as the new federal infrastructure Bill, this could be anywhere from $15 million to $20 million per year.
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.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov