FISCAL NOTE

Date Requested: January 26, 2023
Time Requested: 03:24 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3170 Introduced HB3036
CBD Subject: Governor -- Bills Requested By


FUND(S):

General Revenue Fund

Sources of Revenue:

General 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 increase the number of districts and the limit on approved costs under the BUILD WV Act. This bill would expand upon the BUILD WV Act, which passed during the 2022 legislative session. It would increase the number of BUILD WV districts that may exist at any given time from 3 to 12. Further, the limit on the aggregate sum of approved costs for all projects for any fiscal year would be increased from $40 million to $150 million. We cannot estimate the revenue impact of this bill because no information is available on the number of projects or contractors that would be eligible for participation in the BUILD WV program as administered by the Department of Economic Development. We also cannot accurately estimate the demand for housing applicable to the BUILD WV project. Under the assumption that these certified housing development projects would not have occurred absent the proposed tax incentives, tax revenue gains from additional residential households could offset a sizable portion of the value of the proposed tax incentives. There would be no additional administrative costs incurred by the State Tax Department as the purpose of the bill is to increase the number of districts and the limit on approved costs under the BUILD WV Act.



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 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):


This bill would expand upon the BUILD WV Act, which passed during the 2022 legislative session. It would increase the number of BUILD WV districts that may exist at any given time from 3 to 12. Further, the limit on the aggregate sum of approved costs for all projects for any fiscal year would be increased from $40 million to $150 million. We cannot estimate the revenue impact of this bill because no information is available on the number of projects or contractors that would be eligible for participation in the BUILD WV program as administered by the Department of Economic Development. We also cannot accurately estimate the demand for housing applicable to the BUILD WV project. Under the assumption that these certified housing development projects would not have occurred absent the proposed tax incentives, tax revenue gains from additional residential households could offset a sizable portion of the value of the proposed tax incentives. There would be no additional administrative costs incurred by the State Tax Department as the purpose of the bill is to increase the number of districts and the limit on approved costs under the BUILD WV Act.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov