FISCAL NOTE
Date Requested: January 25, 2022
Time Requested: 04:10 PM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1894 |
Introduced |
HB4387 |
|
|---|
| CBD Subject: |
Military and Veterans |
|---|
|
FUND(S):
3200, 8707
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of the proposed legislation is to allow resident West Virginia Veterans a tax credit after purchasing a lifetime hunting and fishing license to offset the cost of $805.
We estimate that 13,067 Veterans would utilize this benefit resulting in an initial first-year loss as they transition from an annual license to a lifetime license. In the second year the WVDNR could have a net gain of an estimated $310,529 due to the ability to withdraw interest on the lifetime license principal. Additionally it is estimated that 169 new veterans each year will take advantage of this benefit, decreasing $5,906 per year, but by the end of the second year, interest will accrue, for an estimated net gain to the WVDNR of $314,539.
There is an expected cost to the General Tax Revenue of the state of WV for providing the tax credit for $805. The estimates of this impact to the costs and revenues of the State would best be estimated by the WV State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
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 |
-457,333 |
310,529 |
314,539 |
Explanation of above estimates (including long-range effect):
Est. # of current WV Veterans 130,536 US Census ACS (2019)
Est.# of Honorably Discharged Veterans (WV) 118,788
Est. WV participation rate in hunting and/or fishing 22% US Fish and Wildlife Survey 2011
Est. # of eligible veterans who hunt and/or fishing 26,133
Est. # of veterans who would purchase product (50%) 13,067
Approximate # of new WV veterans each year 1,534 WV Veterans Admin. pers. com.
Est. # of new eligible veterans who hunt and/or fish
(1,536 X 22% participation rate) 337
Est. # of new veterans who would purchase product (50%) 169
Estimated annual license revenue lost in first year
(13,067 X -$35) -$457,333
Interest earned per lifetime license
($805 X 7.3%) $58.77
Interest earned at end of first year
(13,067 X $58.77) $767,862
Second year total $310,529
Estimated license revenue lost in second year -$5,906
Total during second year $304,623
Interest earned in second year $9,916
Total at end of second year $314,539
Memorandum
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov