FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 06:32 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1026 Introduced SB16
CBD Subject: Natural Resources


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund,Other Fund local property tax

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 a section of the code related to wind power projects. There would be an increase of roughly $8.0 million in revenue beginning in FY2019. The estimated revenue gain would be more than $3.4 million to the State General Revenue Fund, $1.8 million to local county school boards, and $2.8 million to county commissions. The distribution of estimated increase is based on information from taxes levied in affected counties and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula. Additional administrative costs would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 8,000,000


Explanation of above estimates (including long-range effect):


There would be an increase of roughly $8.0 million in revenue beginning in FY2019. The estimated revenue gain would be more than $3.4 million to the State General Revenue Fund, $1.8 million to local county school boards, and $2.8 million to county commissions. The distribution of estimated increase is based on information from taxes levied in affected counties and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula. Additional administrative costs would be minimal. 



Memorandum


The stated purpose of this bill is to a section of the code related to wind power projects. The purpose of this bill is to repeal West Virginia Code §11-6A-5a, which specifically made wind power projects subject to the valuation of pollution control facilities under this Article. This permitted wind turbines and towers of wind power projects to be valued at salvage value for the purposes of ad valorem property taxes. Without Section 5a, it appears to be unlikely that wind power projects would fit under the definition of pollution control facilities found under West Virginia Code §11-6A-2 and, therefore, wind power projects would not be allowed this special property valuation.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov