FISCAL NOTE
Date Requested: February 21, 2017
Time Requested: 01:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2618 |
Introduced |
SB375 |
|
|---|
| 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 change the severance tax on limestone, sandstone and other mined stone products from a percentage of the sales price to a flat rate.
According to the provisions of this bill, for tax years beginning after December 31, 2016, the severance tax for limestone, sandstone, mined aggregate products and crushed stone shall be 9¢ per ton of product sold by the producer of the natural resource material. Based on recent State Severance Tax data, the current tax rate of five percent of the sales prices of these mined aggregate products is equivalent to 10¢ per ton. Passage of this bill would result in a loss of $120,000 per fiscal year to the General Revenue Fund in FY2018 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $14,000 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 |
14,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
14,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-120,000 |
-120,000 |
Explanation of above estimates (including long-range effect):
According to the provisions of this bill, for tax years beginning after December 31, 2016, the severance tax for limestone, sandstone, mined aggregate products and crushed stone shall be 9¢ per ton of product sold by the producer of the natural resource material. Based on recent State Severance Tax data, the current tax rate of five percent of the sales prices of these mined aggregate products is equivalent to 10¢ per ton. Passage of this bill would result in a loss of $120,000 per fiscal year to the General Revenue Fund in FY2018 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $14,000 in FY2018.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov