FISCAL NOTE
Date Requested: February 07, 2023
Time Requested: 03:36 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2239 |
Amendment |
HB3327 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Municipalities
Sources of Revenue:
Other Fund Municipalities
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to cap the amount of moneys to which third party vendors or contractors who collect business and occupation taxes on behalf of cities or municipalities may be entitled for their services.
According to our interpretation, this bill would cap the amount charged by any third-party vendor who contracts with a city or municipality to collect business and occupation taxes on behalf of a city or municipality at a maximum of 20 percent of the amount of taxes collected for their services. The twenty percent cap is applicable for local business and occupation taxes, the 1% service tax, and for the business license of the company or contractor collecting on behalf of the city or municipality.
The Tax Department does not administer the local B&O tax collected by municipalities. We cannot estimate the amount of increase to municipalities in FY2024 and subsequent fiscal years.
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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):
According to our interpretation, this bill would cap the amount charged by any third-party vendor who contracts with a city or municipality to collect business and occupation taxes on behalf of a city or municipality at a maximum of 20 percent of the amount of taxes collected for their services. The twenty percent cap is applicable for local business and occupation taxes, the 1% service tax, and for the business license of the company or contractor collecting on behalf of the city or municipality.
The Tax Department does not administer the local B&O tax collected by municipalities. We cannot estimate the amount of increase to municipalities in FY2024 and subsequent fiscal years.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
The stated purpose of this bill is to cap the amount of moneys to which third party vendors or contractors who collect business and occupation taxes on behalf of cities or municipalities may be entitled for their services.
The proposed twenty percent cap applies to local B&O taxes, the 1% service tax, and for the vendor’s business license. It is not clear what is meant by the “1% service tax associated therein”. It is not clear whether the additional fee taxes apply to business registration.
It is also not clear why the creation of proposed W.Va. Code §11-13-32 is necessary since current
W.Va. code §11-13-1, et seq. only applies to the State B&O tax, which presently applies to only a few select utilities.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov