FISCAL NOTE
Date Requested: January 28, 2020
Time Requested: 02:42 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1389 |
Introduced |
HB4566 |
|
|---|
| CBD Subject: |
Human Services, Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to grant a tax deduction against corporate net income tax for retail food distributors that donate certain surplus food products to school “backpack programs” and school pantries. The bill requires rulemaking and defines terms. Current code provides tax credit for private, nonprofit food banks.
The proposed bill creates a decreasing modification for corporate taxpayers equal to the net value of “apparently fit grocery products” and “apparently wholesome food” donated to the “backpack programs” and school pantries of schools in the state. Based on our interpretation, passage of the proposed legislation would decrease General Revenue Fund collections by $50,000 a year beginning in FY2022. The bill has no internal effective date and would become effective 90 days from passage.
Additional administrative costs incurred by the Tax Department would be $10,000 in FY2022.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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 |
-50,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The proposed bill creates a decreasing modification for corporate taxpayers equal to the net value of “apparently fit grocery products” and “apparently wholesome food” donated to the “backpack programs” and school pantries of schools in the state. Based on our interpretation, passage of the proposed legislation would decrease General Revenue Fund collections by $50,000 a year beginning in FY2022. The bill has no internal effective date and would become effective 90 days from passage.
Additional administrative costs incurred by the Tax Department would be $10,000 in FY2022.
Memorandum
The stated purpose of this bill is to grant a tax deduction against corporate net income tax for retail food distributors that donate certain surplus food products to school “backpack programs” and school pantries. The bill requires rulemaking and defines terms. Current code provides tax credit for private, nonprofit food banks.
The West Virginia Code does not have a section designated as §11-24-6b, making the designation of the proposed new section, §11-24-6c problematic. The bill should be amended by replacing the proposed designation of “§11-24-6c” with “§11-24-6b”, or by adding a new subsection, designated §11-24-6(c)(10) to W.Va.Code 11-24-6(c).
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov