FISCAL NOTE
Date Requested: March 17, 2025
Time Requested: 04:51 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3774 |
Introduced |
HB3458 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Racetrack Table Games Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
HB3458 will significantly reduce state revenue by $9,810,109.00 annually, starting with the 2025 licensing year from October 1, 2025, through September 30, 2026, and continuing each year thereafter.
Additionally, funds and programs that will experience funding reductions as a result of the state’s revenue loss include the Excess Lottery Fund, Local Government, Track Pension, Track Purse, Greyhound Development Fund, Thoroughbred Development Fund, and Lottery Commission Administration Fee. (See chart below).
Based on budget projections, the Lottery Commission's administration fee will be reduced by $793,458.00 for FY2026. This significant funding reduction will prevent the Commission from meeting its financial obligations, including operational costs, employee salaries, vendor payments, regulatory enforcement, and other essential expenses needed to uphold the lottery system's integrity and efficiency. Without alternative funding sources or budget adjustments, this shortfall could hinder the Commission’s ability to provide necessary services and fulfill its statutory responsibilities.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Tax Revenue Impact
Category Amount ($)
Total Taxable Revenue(2023/2024) 92,476,995.00
Total Tax Collected @ 35% 32,366,948.00
Proposed Exemption each track 7,142,857.00
Revised Taxable Revenue 64,448,113.00
Adjusted Tax Collected 22,556,839.00
Annual Revenue Reduction (9,810,109.00)
Associated Funding Reductions Due to Lost State Revenue (FY2026 Projections):
Fund / Program Reduction ($)
Excess Lottery Fund 4,541,221.00
Local Government 2,618,409.00
Track Pension 232,747.00
Track Purse 661,213.00
Greyhound Development 243,257.00
Thoroughbred Development 285,714.00
Lottery Administration Fee 793,458.00
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
N/A
Person submitting Fiscal Note: June Somerville
Email Address: jsomerville@wvlottery.com