FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 04:40 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1986 |
Introduced |
HB4885 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
State Road Fund, Aviation Fuel Tax Fund
Sources of Revenue:
Other Fund State Road Fund, Aviation Fuel Tax 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 remove taxes on gasoline.
According to our interpretation, the bill would repeal W.Va. Code Section §11-14C-5 which levied both the flat rate and variable rate taxes on all motor fuels. This would include the taxes levied on gasoline, blended fuel, aviation fuel, any special fuel, and alternative fuel.
The Aviation Fuel Tax Fund derives revenue from the motor fuel excise tax on aviation fuel. The Aviation Fuel Tax Fund is the primary source of funds for the issuance of grants to public use airports. These grants assist airports with the local match requirement of the Federal Airport Improvement Program. In FY2025, the Aviation Fuel Tax Fund received roughly $1.4 million of aviation fuel tax revenues. Without these revenues, the ability to obtain matching federal dollars will be limited. The motor fuel tax is the largest source of revenue for the State Road Fund. These revenues provide matching funds for federal dollars to improve highways and other transportation infrastructure in West Virginia.
Per our interpretation, the bill, if passed, would decrease State Road Fund collections by up to $390 million in FY2027 and by an average of $425 million in subsequent fiscal years in addition to the $1.4 million loss to the Aviation Fuel Tax Fund.
Additional costs incurred by the State Tax Division would be $28,600 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 |
28,600 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
28,600 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-391,400,000 |
-426,400,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill would repeal W.Va. Code Section §11-14C-5 which levied both the flat rate and variable rate taxes on all motor fuels. This would include the taxes levied on gasoline, blended fuel, aviation fuel, any special fuel, and alternative fuel.
The Aviation Fuel Tax Fund derives revenue from the motor fuel excise tax on aviation fuel. The Aviation Fuel Tax Fund is the primary source of funds for the issuance of grants to public use airports. These grants assist airports with the local match requirement of the Federal Airport Improvement Program. In FY2025, the Aviation Fuel Tax Fund received roughly $1.4 million of aviation fuel tax revenues. Without these revenues, the ability to obtain matching federal dollars will be limited. The motor fuel tax is the largest source of revenue for the State Road Fund. These revenues provide matching funds for federal dollars to improve highways and other transportation infrastructure in West Virginia.
Per our interpretation, the bill, if passed, would decrease State Road Fund collections by up to $390 million in FY2027 and by an average of $425 million in subsequent fiscal years in addition to the $1.4 million loss to the Aviation Fuel Tax Fund.
Additional costs incurred by the State Tax Division would be $28,600 in FY2026.
Memorandum
The stated purpose of this bill is to remove taxes on gasoline.
The Motor Fuel Excise Tax is imposed on “motor fuel,” defined in §11-14C-2(61) as “gasoline, blended fuel, aviation fuel, any special fuel and alternative fuel.” The bill title purports to remove the tax on gasoline alone.
The bill repeals the entirety of section 5, eliminating the motor fuel tax altogether. That action would also make the remainder of Article 14C redundant.
No effective date is stated.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov