FISCAL NOTE
Date Requested: January 13, 2020
Time Requested: 12:36 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1370 |
Introduced |
HB4113 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Rod 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 provide exemption for fuel used in power take off unit of a fuel delivery truck and allow refunds of all motor fuel taxes if fuel is lost through casualty.
Per our interpretation, the bill increases motor fuel tax exemptions or refunds in three areas. The bill exempts fuel used in power take-off units in fuel delivery trucks. The bill also expands the refund of taxes for loss through evaporation or casualty to include the variable rate. As there is no internal effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease State Road Fund collections by at least $150,000 in FY2021 and subsequent fiscal years.
Additional administrative costs incurred by the Tax Department would be $20,000 in FY2021 and in subsequent fiscal years.
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 |
20,000 |
20,000 |
| Personal Services |
0 |
20,000 |
20,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-150,000 |
-150,000 |
Explanation of above estimates (including long-range effect):
Per our interpretation, the bill increases motor fuel tax exemptions or refunds in three areas. The bill exempts fuel used in power take-off units in fuel delivery trucks. The bill also expands the refund of taxes for loss through evaporation or casualty to include the variable rate. As there is no internal effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease State Road Fund collections by at least $150,000 in FY2021 and subsequent fiscal years.
Additional administrative costs incurred by the Tax Department would be $20,000 in FY2021 and in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov