FISCAL NOTE
Date Requested: January 19, 2016
Time Requested: 01:51 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1722 |
Introduced |
SB246 |
|
|---|
| CBD Subject: |
Counties, Municipalities, Taxation |
|---|
|
FUND(S):
Local Governments
Sources of Revenue:
Other Fund local governments
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide an option for certain governmental entities to extend the term of a tax increment financing district from a maximum of 30 years to a maximum of 40 years if tax increment financing obligations were issued for that district in the years leading up to the most recent United States economic recession.
The Tax Department cannot quantify the local or state tax revenue impact of this proposal. For tax increment financing districts that are extended, the local government entities in that county would be denied property taxes on the increment for another 10 years.
There would be no administrative costs to the Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
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):
The Tax Department cannot quantify the local or state tax revenue impact of this proposal. For tax increment financing districts that are extended, the local government entities in that county would be denied property taxes on the increment for another 10 years.
There would be no administrative costs to the Tax Department.
Memorandum
The stated purpose of this bill is to provide an option for certain governmental entities to extend the term of a tax increment financing district from a maximum of 30 years to a maximum of 40 years if tax increment financing obligations were issued for that district in the years leading up to the most recent United States economic recession.
Beyond the purview of this fiscal note, there may be some concern over the proposed provision to allow discharge of any outstanding tax increment financing obligations following the formulation of the of the district and subsequent termination date of the district.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov