FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 01:31 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3184 Introduced HB3060
CBD Subject: Taxation


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 increase the business and occupation tax on the production of electricity for two years. According to the provisions of this bill, the tax imposed on Taxpayers who generate or produce electricity for sale, profit, or commercial use will increase from $22.78 per Kilowatt hour (kWh) to $24.33 per kWh for a two-year period. In the case of generation units, the flue gas desulfurization technology tax rate will increase from $20.70 per kWh to $22.10 per kWh. Passage of this bill is expected to result in an increase of roughly $8.0 million to the General Revenue Fund per year for a two-year period beginning after the effective date of this bill. Additional administrative costs incurred by the State Tax Department would be $9,000 in FY2018.



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 9,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 9,000 0
2. Estimated Total Revenues 0 8,000,000 8,000,000


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


According to the provisions of this bill, the tax imposed on Taxpayers who generate or produce electricity for sale, profit, or commercial use will increase from $22.78 per Kilowatt hour (kWh) to $24.33 per kWh for a two-year period. In the case of generation units, the flue gas desulfurization technology tax rate will increase from $20.70 per kWh to $22.10 per kWh. Passage of this bill is expected to result in an increase of roughly $8.0 million to the General Revenue Fund per year for a two-year period beginning after the effective date of this bill. Additional administrative costs incurred by the State Tax Department would be $9,000 in FY2018.



Memorandum






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