FISCAL NOTE

Date Requested: January 28, 2019
Time Requested: 01:04 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2566 Introduced HB2703
CBD Subject: Taxation


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road 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 remove the cap on the amount of tax that may be refunded to a dealer of petroleum products for gallons lost due to evaporation. Passage of this bill will result in no cost to the State Road Fund as the code reference the bill refers to was repealed in its entirety. Article 14 of Chapter 11 in the W.Va. Code referring to the Gasoline and Special Fuel Excise Tax was repealed in its entirety by W.Va. Code §11-14-31 on January 1, 2004 and replaced by the Motor Fuel Excise Tax per W.Va. Code 11-14C. Passage of this bill will result in no cost to the State Road Fund as the code reference the bill refers to was repealed in its entirety. No additional administrative costs would be incurred by the State Tax Department.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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):


Passage of this bill will result in no cost to the State Road Fund as the code reference the bill refers to was repealed in its entirety. Article 14 of Chapter 11 in the W.Va. Code referring to the Gasoline and Special Fuel Excise Tax was repealed in its entirety by W.Va. Code §11-14-31 on January 1, 2004 and replaced by the Motor Fuel Excise Tax per W.Va. Code 11-14C. Passage of this bill will result in no cost to the State Road Fund as the code reference the bill refers to was repealed in its entirety. No additional administrative costs would be incurred by the State Tax Department.



Memorandum


The stated purpose of this bill is to remove the cap on the amount of tax that may be refunded to a dealer of petroleum products for gallons lost due to evaporation. This bill does not accomplish its purpose as Article 14 in its entirety was repealed by W.Va. Code §11-14-31 on January 1, 2004. The drafters of this bill may have intended to address the cap on evaporation loss as set forth in W.Va. Code §11-14C-3(c). Even if the State has the authority to remove the Motor Fuel Excise Tax refund cap, it is not clear whether other members of the International Fuel Trade Agreement (IFTA) may object to West Virginia’s treatment of evaporation if this bill were re-written to address W.Va. Code §11-14-30 and were to pass.



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