FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 05:31 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4147 |
Introduced |
SB935 |
|
|---|
| CBD Subject: |
Energy; Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources, Decreases 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 immediately eliminate the business and occupation tax exemption for certain coal-fired merchant power plants on the generating capacity of the generating units.
According to our interpretation, this bill would eliminate the current Business and Occupation Tax exemption for certain coal-fired merchant power plants. Current law provides coal-fired power plants the ability to base their tax bill on 45 percent of nameplate capacity. Actual tax liability would also depend on the amount of capital investment tax credits available to the facility and actual operation of the facility. No tax is due if the facility is inactive or retired with 18-month advance notice requirement.
Pursuant to W. Va. Code §11-10-5d, because there are a limited number of taxpayers that would be affected by the provisions of this bill, a precise estimate of the bill’s fiscal implications cannot be released.
Additional administrative costs incurred by the State Tax Department would be $22,000 in FY2026.
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 |
22,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
22,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would eliminate the current Business and Occupation Tax exemption for certain coal-fired merchant power plants. Current law provides coal-fired power plants the ability to base their tax bill on 45 percent of nameplate capacity. Actual tax liability would also depend on the amount of capital investment tax credits available to the facility and actual operation of the facility. No tax is due if the facility is inactive or retired with 18-month advance notice requirement.
Pursuant to W. Va. Code §11-10-5d, because there are a limited number of taxpayers that would be affected by the provisions of this bill, a precise estimate of the bill’s fiscal implications cannot be released.
Additional administrative costs incurred by the State Tax Department would be $22,000 in FY2026.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov