FISCAL NOTE
Date Requested: January 14, 2022 Time Requested: 10:32 AM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1327 |
Introduced |
HB4092 |
|
CBD Subject: |
Natural Resources |
---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
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 property tax relief to rare earth industries. The bill is to be titled “Rare Earth Property Tax Industrial Development Act.” The bill provides for definitions. The bill creates valuation of certain rare earth business personal property. The bill creates an initial determination with a process for protest and appeal. Finally, the bill creates an effective date.
The State Tax Department cannot quantify the revenue loss associated with this proposal. Currently, there is no rare earth industry in the State. However, at least one rare earth business is planned for development at this time. Rare earth elements are recovered as an incidental part of the mining and use of coal. The provisions of this bill would provide for valuation of qualified property at salvage value for purposes of taxation. It is unclear how the allocation of mining equipment will be treated under the provisions of this bill.
Additional administrative costs to the State Tax Department and local governments cannot be readily determined.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2022 Increase/Decrease (use"-") |
2023 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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The State Tax Department cannot quantify the revenue loss associated with this proposal. Currently, there is no rare earth industry in the State. However, at least one rare earth business is planned for development at this time. Rare earth elements are recovered as an incidental part of the mining and use of coal. The provisions of this bill would provide for valuation of qualified property at salvage value for purposes of taxation. It is unclear how the allocation of mining equipment will be treated under the provisions of this bill.
Additional administrative costs to the State Tax Department and local governments cannot be readily determined.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov