FISCAL NOTE
Date Requested: February 15, 2023
Time Requested: 08:31 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3590 |
Introduced |
HB3525 |
|
|---|
| CBD Subject: |
Utilities |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
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 tax solar panels used as energy wholesale generators or small scale utilities.
We cannot determine the revenue impact of this bill. The bill does not accurately explain how the tax is to be imposed.
Administrative costs to the State Tax Division cannot be determined because the tax is not clearly defined.
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):
We cannot determine the revenue impact of this bill. The bill does not accurately explain how the tax is to be imposed.
Administrative costs to the State Tax Division cannot be determined because the tax is not clearly defined.
Memorandum
The stated purpose of this bill is to tax solar panels used as energy wholesale generators or small scale utilities.
The bill creates a new section in Article 15A. The new provision does not appear to be a use tax and is unenforceable under Article 15A. The proposed provision also has a lot of missing information, such as definitions and method to determine salvage value of panels. Although the Tax Commissioner has rule-making authority to determine the salvage value, there is a risk of exceeding statutory authority with the result of administrative challenges and litigation.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov