FISCAL NOTE
Date Requested: January 23, 2023
Time Requested: 04:33 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3138 |
Introduced |
SB446 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road Fund
Legislation creates:
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 remove methanol and methanol fuel from the definition of special fuel.
Based on our interpretation, the bill would remove methanol and methanol fuel from the definition of “special fuel” for purposes of the Motor Fuel Excise Tax. The definition of “motor fuel” includes special fuel, thus making methanol subject to the tax unless it is subject to one of the exemptions set forth in W. Va. Code §11-14C-9 or 9a. Methanol is considered an alternative fuel under the “Energy Policy Act of 1992” and was used as a fuel in the 1990’s. However, methanol is no longer in use or being developed as a commercial transportation fuel. Methanol produced for industrial use would also be exempt from tax under the provisions of this bill.
According to our interpretation, there would be no State Road Fund revenue impact if the bill is passed.
Additional administrative costs incurred by the State Tax Department would be $15,000 in FY2023.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
15,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
15,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the bill would remove methanol and methanol fuel from the definition of “special fuel” for purposes of the Motor Fuel Excise Tax. The definition of “motor fuel” includes special fuel, thus making methanol subject to the tax unless it is subject to one of the exemptions set forth in W. Va. Code §11-14C-9 or 9a. Methanol is considered an alternative fuel under the “Energy Policy Act of 1992” and was used as a fuel in the 1990’s. However, methanol is no longer in use or being developed as a commercial transportation fuel. Methanol produced for industrial use would also be exempt from tax under the provisions of this bill.
According to our interpretation, there would be no State Road Fund revenue impact if the bill is passed.
Additional administrative costs incurred by the State Tax Department would be $15,000 in FY2023.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov