FISCAL NOTE

Date Requested: March 02, 2021
Time Requested: 11:32 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2372 Introduced HB2825
CBD Subject:


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Creates New Revenue, Increases Revenue From Existing Sources, Decreases Existing Revenue, Creates New Expense, 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 shift funding from the Landfill Closure Assistance Fund, which was set up in 1991 to properly close old landfills across the state, to local solid waste authorities. According to the 2017 West Virginia Solid Waste Management Plan, 28 of the 35 old landfills have been properly remediated by the fund. Given the progress made towards closure of the old landfills, the portion of the solid waste fee assessed on landfill deposits, which is currently sent to the fund, is being reduced in order to accommodate an in-kind increase in the portion of the solid waste fee charged by county or regional solid waste authorities to fund various recycling, litter control, and other locally important solid waste program. Additionally, this bill would allow for a reduction in the use of county commission/county tax dollars currently utilized to support various recycling, litter control, and other locally important solid waste programs. According to our interpretation, this proposed bill would reduce the State Solid Waste Assessment Fee for the Solid Waste Landfill Closure Assistance Program from $3.50 per ton to $2.50 per ton. In addition, the bill would impose an additional Solid Waste Assessment Fee of $1.00 per ton. The additional fee would be distributed on a per capita basis to each county or regional solid authority based on most recent population projections by the Census Bureau. As written, effective July 1, 2023, there would be an annual loss of $2.2 million to the Landfill Closure Assistance Fund. County and regional solid waste authorities would receive additional revenue based on their relative population in the amount of $2.2 million for reasonable expenses and other expenses incurred for refuse cleanup, recycling programs, litter control programs and other associated needs. Additional administrative costs incurred by the State Tax Department would be $15,000 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 0


Explanation of above estimates (including long-range effect):


According to our interpretation, this proposed bill would reduce the State Solid Waste Assessment Fee for the Solid Waste Landfill Closure Assistance Program from $3.50 per ton to $2.50 per ton. In addition, the bill would impose an additional Solid Waste Assessment Fee of $1.00 per ton. The additional fee would be distributed on a per capita basis to each county or regional solid authority based on most recent population projections by the Census Bureau. As written, effective July 1, 2023, there would be an annual loss of $2.2 million to the Landfill Closure Assistance Fund. County and regional solid waste authorities would receive additional revenue based on their relative population in the amount of $2.2 million for reasonable expenses and other expenses incurred for refuse cleanup, recycling programs, litter control programs and other associated needs. Additional administrative costs incurred by the State Tax Department would be $15,000 in FY2023.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov