FISCAL NOTE
Date Requested: March 14, 2017 Time Requested: 01:30 PM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3183 |
Introduced |
HB3058 |
|
CBD Subject: |
Taxation |
---|
|
FUND(S):
1331
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.
If enacted, House Bill 3058 would increase revenues derived from insurance premium taxes under §33-3-14a for a period of two years.
An increase of 1/2 percent in the premium tax rate is estimated to yield an additional $19,543,247 annually, if the rate increase is in effect for an entire fiscal year.
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 |
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 |
19,543,247 |
39,086,494 |
Explanation of above estimates (including long-range effect):
Estimate of One-half Percent of Additional Premium Tax
Tax Year Taxable Premiums 1% Tax Proposed ½% Increase
FY18 $3,908,649,366 $39,086,494 $19,543,247
FY19 $3,908,649,366 $39,086,494 $19,543,247
Total $39,086,494
Estimates based on FY16 collections.
Memorandum
If enacted, House Bill 3058, would increase the additional premium tax revenue collected under §33-3-14a from the current level of one percent to a rate of one and one-half percent of taxable premiums. The additional revenue collected would be for the State General Revenue Fund. The additional one-half percent tax would remain in effect for two years.
HB3058 does not specify the effective date for the increased tax rate, or the fiscal years for which the increased tax rate would be in effect.
If made effective by July 1, 2017 (fiscal year 2018), the increased revenues are estimated to be as indicated above.
Person submitting Fiscal Note: Melinda Ashworth Kiss
Email Address: Melinda.A.Kiss@wv.gov