FISCAL NOTE
Date Requested: February 19, 2016
Time Requested: 02:46 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1213 |
Introduced |
HB4615 |
|
|---|
| CBD Subject: |
Municipalities |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
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 permit municipalities to collect unpaid utility bills, trash, refuse, demolition, landfill fees or other fees. The bill establishes a procedure. The bill sets forth a fee structure. The bill creates the Municipal Fines and Fees Collection Fund. The bill grants rule-making authority.
As written, the bill requires refunds from Personal Income Tax to be withheld to pay any unpaid utility bills, trash, refuse, demolition, landfill fees or other fees. According to our interpretation, there would be no impact on General Revenue Fund. The bill establishes a revolving fund into which the amounts collected minus the administrative fees are to be deposited. Municipalities would receive some additional money from the collection of these bills and fees by the State Tax Department.
This is an expansion of the current municipal offset program. Additional administrative costs for the State Tax Department attributable of this bill would be $20,000 per year beginning in FY2017.
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 |
20,000 |
20,000 |
| Personal Services |
0 |
20,000 |
20,000 |
| 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):
As written, the bill requires refunds from Personal Income Tax to be withheld to pay any unpaid utility bills, trash, refuse, demolition, landfill fees or other fees. According to our interpretation, there would be no impact on General Revenue Fund. The bill establishes a revolving fund into which the amounts collected minus the administrative fees are to be deposited. Municipalities would receive some additional money from the collection of these bills and fees by the State Tax Department.
This is an expansion of the current municipal offset program. Additional administrative costs for the State Tax Department attributable of this bill would be $20,000 per year beginning in FY2017.
Memorandum
The stated purpose of this bill is to permit municipalities to collect unpaid utility bills, trash, refuse, demolition, landfill fees or other fees. The bill establishes a procedure. The bill sets forth a fee structure. The bill creates the Municipal Fines and Fees Collection Fund. The bill grants rule-making authority.
The bill attempts to make certain municipal charges which are overdue by at least ninety days subject to an offset payment from any state personal income tax refund. The procedure for doing so is not clearly set out. The bill does not define key terms.
The bill may have a title defect. The title does not state that an effective date is established and that the Tax Commissioner collects the fees. The title does not state the fees are collected by a tax refund offset.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov