FISCAL NOTE
Date Requested: February 11, 2019
Time Requested: 11:43 AM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2980 |
Introduced |
HB2984 |
|
|---|
| CBD Subject: |
Natural Resources |
|---|
|
FUND(S):
3200
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed bill will increase hunting license prices and modify harvest privileges associated with white-tailed deer.
We estimate this bill would result in the loss of more than $1.76 million annually in hunting license sales. In addition, $806,840 in Federal Aid in Wildlife Restoration funds would be lost.
Revenue collections from sales tax are estimated to decrease by over $3.7 million per year, as 53,789 hunters no longer generate more than $63 million in economic activity through their failure to purchase food, lodging, transportation, and equipment associated with hunting.
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 |
-6,362,575 |
-6,362,575 |
Explanation of above estimates (including long-range effect):
Lost License sales of $1,763,590.
Estimated loss of 34-48% of current resident hunting license buyers due to the 110% to 153% increase in price of hunting licenses. This is extrapolated from base resident hunting license purchases decreasing 20% due to a 64% price increase in 2006.
Estimated loss of 55% of current non-resident hunting license buyers due to the 110% to 213% increase in price of hunting licenses. This is extrapolated from base non-resident hunting license purchases decreasing 5% due to a 10% price increase in 2006.
Lost Federal Aid in Wildlife Restoration funds of $806,835
From the above extrapolations, it is estimated that 53,789 individuals will no longer buy West Virginia hunting licenses.
The loss of Federal Aid in Wildlife Restoration funds is estimated to be $15 for every hunter that chooses not to purchase a license in West Virginia.
$15 X 53,789 = $806,835
Lost sales tax revenue of $3,792,150
Average annual expenditure per big game hunter in West Virginia = $1,175(Source: Table 18 of the 2011 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation)
$1,175 X 53,789 = $63,202,498 economic activity X 6% sales tax = $3,792,150
Memorandum
The anticipated reduction in revenue will result in the need to reduce the number of Natural Resource Police Officers by at least 11 full time officers. Services including trout stockings and maintenance of Wildlife Management Areas and public boat ramps would necessarily be reduced.
For additional information concerning this fiscal note, please contact: Zack Brown zack.j.brown@wv.gov
Person submitting Fiscal Note: Jennifer Snow
Email Address: jennifer.l.snow@wv.gov