FISCAL NOTE
Date Requested: February 11, 2026
Time Requested: 05:07 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4028 |
Introduced |
HB5432 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 establish the Distribution Center Refundable Toll Payments Tax Credit through use of RFID Tag Reader systems at qualified distribution centers to compile refundable toll payments. The bill allows the promulgation of administrative rules. Finally, the bill provides for an effective date.
This bill would allow a tax credit to every business that operates a qualified distribution center in West Virginia equal to all toll payments made above $150,000 via the West Virginia EZ Pass system. This credit would be available for tolls paid for ground transportation delivery of product or inventory and return. The bill does not specify which taxes the credit may be applied against, and is effective July 1, 2026, retroactive to the beginning of the 2026 tax year. There is no publicly available data for the number of EZ Pass transponders nor is there data for the number of qualified distribution centers that are based in the state. Therefore, we cannot reasonably estimate the revenue impact from this bill. Considering that the cost of tolls is assessed by the number of axles that are on each truck and the heavy volume of daily delivery transportation, the revenue impact could be significant.
Administrative costs to the State Tax Division would be $33,000 in FY 2026 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 |
23,650 |
22,500 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| Current Expenses |
1,650 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
22,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-5,000,000 |
-5,000,000 |
Explanation of above estimates (including long-range effect):
This bill would allow a tax credit to every business that operates a qualified distribution center in West Virginia equal to all toll payments made above $150,000 via the West Virginia EZ Pass system. This credit would be available for tolls paid for ground transportation delivery of product or inventory and return. The bill does not specify which taxes the credit may be applied against, and is effective July 1, 2026, retroactive to the beginning of the 2026 tax year. There is no publicly available data for the number of EZ Pass transponders nor is there data for the number of qualified distribution centers that are based in the state. Therefore, we cannot reasonably estimate the revenue impact from this bill. Considering that the cost of tolls is assessed by the number of axles that are on each truck and the heavy volume of daily delivery transportation, the revenue impact could be significant.
Administrative costs to the State Tax Division would be $33,000 in FY 2026 and $11,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to establish the Distribution Center Refundable Toll Payments Tax Credit through use of RFID Tag Reader systems at qualified distribution centers to compile refundable toll payments. The bill allows the promulgation of administrative rules. Finally, the bill provides for an effective date.
The amount of the credit is tied to the toll payments made via the West Virginia EZ Pass system. Specifically, the credit is “a dollar-for-dollar tax credit for all toll payments paid above $150,000.” Presumably, this means that, if a “qualified distribution center” paid tolls totaling $200,000 in a tax year, the amount of available credit for that tax year would be $50,000. The bill is silent with regard to what taxes the credit can be applied against.
The effective date language is: “The provisions of this article will be treated as effective as of July 1, 2026, but the credit shall be allowed to be claimed against all toll payments above $150,000 made within the West Virginia EZ Pass system in Tax Year 2026 and each tax year thereafter.” Retroactivity to the beginning of the 2026 tax year is uncertain, given this language.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov