FISCAL NOTE
Date Requested: February 17, 2020 Time Requested: 12:46 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3226 |
Introduced |
SB816 |
|
CBD Subject: |
Taxation |
---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to update the North American Industrial Code (NAIC) reference in the definition of “manufacturing” as used in W.Va. Code §11-6F-2 and 11-13S-3 from 211112 to 211130 but only to the extent the classification applies to the process of raw natural gas or oil to recover the liquid hydrocarbons, which activity is classified under 211130.
According to our interpretation, the provisions of this bill provide a technical change in response to a North American Industrial Classification System change in categorization of natural gas liquid processing plants from NAICS code 211112 to 211130. When an eligible taxpayer converts the natural gas into liquid hydrocarbons within a processing facility, this process would qualify as manufacturing. This bill has no revenue impact.
Additional administrative costs incurred by the State Tax Department would be $1,000 in FY2022. Administrative costs incurred by the State Property Tax Division and local governments would be minimal.
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 |
1,000 |
Personal Services |
0 |
0 |
1,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the provisions of this bill provide a technical change in response to a North American Industrial Classification System change in categorization of natural gas liquid processing plants from NAICS code 211112 to 211130. When an eligible taxpayer converts the natural gas into liquid hydrocarbons within a processing facility, this process would qualify as manufacturing. This bill has no revenue impact.
Additional administrative costs incurred by the State Tax Department would be $1,000 in FY2022. Administrative costs incurred by the State Property Tax Division would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov