FISCAL NOTE
Date Requested: February 12, 2021
Time Requested: 02:21 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1990 |
Introduced |
HB2355 |
|
|---|
| CBD Subject: |
|
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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 grant a tax deduction against corporate net income tax for retail food distributors that donate certain surplus food products to school “backpack programs” and school pantries. The bill requires rulemaking and defines terms. Current code provides tax credit for private, nonprofit food banks.
The proposed bill creates a decreasing modification for corporate taxpayers equal to the net value of “apparently fit grocery products” and “apparently wholesome food” donated to the “backpack programs” and school pantries of schools in the state. Based on our interpretation, passage of the proposed legislation would decrease General Revenue Fund collections by $50,000 during the first full year of enactment. The bill has no internal effective date and would become effective 90 days from passage.
Additional administrative costs incurred by the Tax Department would be $10,000 in FY2023.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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 |
-50,000 |
Explanation of above estimates (including long-range effect):
The proposed bill creates a decreasing modification for corporate taxpayers equal to the net value of “apparently fit grocery products” and “apparently wholesome food” donated to the “backpack programs” and school pantries of schools in the state. Based on our interpretation, passage of the proposed legislation would decrease General Revenue Fund collections by $50,000 during the first full year of enactment. The bill has no internal effective date and would become effective 90 days from passage.
Additional administrative costs incurred by the Tax Department would be $10,000 in FY2023.
Memorandum
The stated purpose of this bill is to grant a tax deduction against corporate net income tax for retail food distributors that donate certain surplus food products to school “backpack programs” and school pantries. The bill requires rulemaking and defines terms. Current code provides tax credit for private, nonprofit food banks.
The bill has no internal effective date and would become effective 90 days from passage. This bill should also define the terms “backpack programs” and “net value”.
The deduction equals the net value of the specified types of food donated. Language fleshing out the determination of the value of the deduction might be helpful. This might be accomplished by the promulgation of legislative rules by the Tax Commissioner as authorized in the bill.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov