FISCAL NOTE
Date Requested: March 08, 2021
Time Requested: 11:57 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2922 |
Introduced |
SB596 |
|
|---|
| CBD Subject: |
Corporations |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to create the Corporate Anti-Subsidy Act. The bill permits West Virginia to enter into the “Interstate Compact Agreement Prohibiting Company-Specific Subsidies.” The bill sets a level playing field that would abolish the nation-wide practice of company-specific subsidies that pits states against one another. The bill provides that member states to the compact agree not to offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. The bill excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce from abolition under the compact. The bill provides for withdrawal of a member state with six-months’ written notice.
This bill would permit West Virginia to enter into interstate agreements relating to company-specific subsidies. This compact is intended to provide a self-binding agreement that the member states will not engage in “company-specific tax incentives” or “company-specific grants” intended to entice the relocation of companies to or prevent the relocation of companies out of their respective state. Existing company-specific subsidies and grants are not impacted by this agreement, as this bill is not retroactive. We are not able to accurately estimate the impact on General Revenue Fund.
There would be no additional administrative costs to the State Tax Department.
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):
This bill would permit West Virginia to enter into interstate agreements relating to company-specific subsidies. This compact is intended to provide a self-binding agreement that the member states will not engage in “company-specific tax incentives” or “company-specific grants” intended to entice the relocation of companies to or prevent the relocation of companies out of their respective state. Existing company-specific subsidies and grants are not impacted by this agreement, as this bill is not retroactive. We are not able to accurately estimate the impact on General Revenue Fund.
There would be no additional administrative costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov