FISCAL NOTE

Date Requested: January 11, 2023
Time Requested: 10:07 PM
Agency: Natural Resources, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
1148 Introduced HB2450
CBD Subject: Taxation


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 with a combined disability of 50 percent or greater the ability to purchase a lifetime combination hunting and fishing license at 50% of standard adult cost. In addition, the qualifying veteran would receive a tax credit in the amount of purchase to offset the cost of $402.50. We estimate that 2,317 Veterans would utilize this benefit resulting in a first-year loss of $81,095.00 in license sales. The second year this loss decreases to $13,015.75 due to the ability to withdraw interest on the lifetime license principal. However, it is estimated that 26 new veterans each year will avail themselves of this benefit, increasing the deficit in license sales by $907.74 per year for a total loss of $13,923.49 during the second year. After a period of 15 to 25 years, we believe the lost license revenue would start to decrease as the lifetime license holders pass age 65 and would no longer be expected to purchase an annual license. There is also an expected cost to the General Tax Revenue of the state of WV for providing the tax credit for $402.50. 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
2023
Increase/Decrease
(use"-")
2024
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 -81,095 -13,923


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


Est. # of current WV Veterans 137,000 WV Veterans Admin 2019 Est.# of 50% or greater disabled veterans in West Virginia 21,057 WV Veterans Admin 2019 Est. WV participation rate in hunting and/or fishing 22% US Fish and Wildlife Survey 2011 Est. # of eligible veterans who hunt and/or fish 4,633 Est. # of veterans who would purchase product (50%) 2,317 Approximate # of new WV veterans each year 1,534 WV Veterans Admin. pers. com. Based on current WV percentages Percentage of veterans 50% or greater disabled 15% Yearly eligible veterans 236 Est. # of new eligible veterans who hunt and/or fish (236 X 22% participation rate) 52 Est. # of new veterans who would purchase product (50%) 26 Estimated license revenue lost in first year (2,317 X -$35) -$81,095.00 Interest earned per ½ lifetime license ($402.50X 7.3%) $29.38 Interest earned second year (2,317 X $29.38) $68,073.46 The same process as above was used to estimate the yearly increase in lost revenue for the estimated 26 new 50% disabled veterans who would utilize this benefit each year.



Memorandum


For additional information concerning this fiscal note, please contact: Zack Brown 304-352-5126 Zack.J.Brown@wv.gov



    Person submitting Fiscal Note: Amanda Morris
    Email Address: amanda.l.morris@wv.gov