FISCAL NOTE
Date Requested: February 10, 2026
Time Requested: 03:04 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3923 |
Introduced |
HB5388 |
|
|---|
| CBD Subject: |
Motor Vehicles |
|---|
|
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 create a tax credit for certain West Virginia businesses participating in the official motorist services logo signing program.
This bill would create a tax credit equal to one hundred percent of the eligible expenses to participate in the motorist services signage program. The eligible expenses must be paid to the West Virginia Division of Highways and are limited to those that are governmental expenses, not private advertising. Eligible businesses must maintain their principal place of business in the State; be at least 51 percent owned by individuals domiciled in the State; operate fewer than five businesses within the State; and not utilize national or regional branding standards or participate in national advertising programs. The credit is nontransferable and may not be carried forward nor backward. The credit would be effective on January 1, 2027 and is applicable to taxable years beginning on or after that date.
The cost for the design and manufacture of a business’s logo panel is negotiated between the business and the sign manufacturer. For the logo program, fees for the initial one-year term are $800 and then $600 annually. For interstate facilities, fees for the initial three-year term are $2,000 and then $600 annually for each of the three years of renewal. Furthermore, if a business requests, or the Division of Highways requires, that the business panels are not to be displayed during seasonal closures of the business, the business shall pay a fee of $200 for the removal or cover of panels and a $200 fee to reinstall or uncover the panels.
According to the West Virginia Department of Transportation, there are 602 service signs in the
State. Many of the businesses that participate in the service sign program use the logos of national brands. These businesses would be excluded from the tax credit as participating businesses must be without contractual obligations requiring national or regional branding, advertising, or operational control. Although there are over 100,000 businesses based in West Virginia, no data is readily available for the number of businesses that would be eligible for this credit. Therefore, we cannot reasonably estimate the revenue impact of this bill.
Additional administrative costs to the State Tax Division would be $33,000 in FY2027; $12,650 in FY2028; and $11,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
33,000 |
11,000 |
| Personal Services |
0 |
0 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
33,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would create a tax credit equal to one hundred percent of the eligible expenses to participate in the motorist services signage program. The eligible expenses must be paid to the West Virginia Division of Highways and are limited to those that are governmental expenses, not private advertising. Eligible businesses must maintain their principal place of business in the State; be at least 51 percent owned by individuals domiciled in the State; operate fewer than five businesses within the State; and not utilize national or regional branding standards or participate in national advertising programs. The credit is nontransferable and may not be carried forward nor backward. The credit would be effective on January 1, 2027 and is applicable to taxable years beginning on or after that date.
The cost for the design and manufacture of a business’s logo panel is negotiated between the business and the sign manufacturer. For the logo program, fees for the initial one-year term are $800 and then $600 annually. For interstate facilities, fees for the initial three-year term are $2,000 and then $600 annually for each of the three years of renewal. Furthermore, if a business requests, or the Division of Highways requires, that the business panels are not to be displayed during seasonal closures of the business, the business shall pay a fee of $200 for the removal or cover of panels and a $200 fee to reinstall or uncover the panels.
According to the West Virginia Department of Transportation, there are 602 service signs in the
State. Many of the businesses that participate in the service sign program use the logos of national brands. These businesses would be excluded from the tax credit as participating businesses must be without contractual obligations requiring national or regional branding, advertising, or operational control. Although there are over 100,000 businesses based in West Virginia, no data is readily available for the number of businesses that would be eligible for this credit. Therefore, we cannot reasonably estimate the revenue impact of this bill.
Additional administrative costs to the State Tax Division would be $33,000 in FY2027; $12,650 in FY2028; and $11,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to create a tax credit for certain West Virginia businesses participating in the official motorist services logo signing program.
While the bill grants the credit to an “eligible taxpayer that is an independent West Virginia business,” it does not specify which tax the credit is to be taken against. Businesses are subject to a variety of taxes including CNIT or potentially PIT.
The bill contains a technical error in §11-13NN-4. The bill refers to §11-13X-2 for the definition of “independent West Virginia business.” However, W. Va. Code §11-13X-2 refers to the Film Industry Investment tax credit. The correct citation is probably the proposed §11-13NN-2.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov