FISCAL NOTE
Date Requested: January 31, 2023
Time Requested: 12:32 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3156 |
Introduced |
HB3169 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Unknown
Sources of Revenue:
Other Fund Unknown
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 establish the Distribution Center Refundable Toll Payments Tax Credit through use of RFID Tag Reader Systems at qualified distribution and manufacturing centers to compile refundable toll payments. The bill allows the promulgation of administrative rules. Finally, the bill provides for an effective date.
The vagueness of this bill prevents the Tax Department from reasonably estimating the revenue impact of this rebate. Typically, tax credits provided under the W. Va. Code would be applied against a taxpayer’s payment obligations, though the bill does not directly address this issue. The bill is unclear as to how the rebate would be applied.
Administrative costs incurred by the Tax Department would be $15,000 in FY2023.
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 |
15,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
15,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The vagueness of this bill prevents the Tax Department from reasonably estimating the revenue impact of this rebate. Typically, tax credits provided under the W. Va. Code would be applied against a taxpayer’s payment obligations, though the bill does not directly address this issue. The bill is unclear as to how the rebate would be applied.
Administrative costs incurred by the Tax Department would be $15,000 in FY2023.
Memorandum
The stated purpose of this bill is to establish the Distribution Center Refundable Toll Payments Tax Credit through use of RFID Tag Reader systems at qualified distribution and manufacturing center to compile refundable toll payments. The bill allows the promulgation of administrative rules. Finally, the bill provides for an effective date.
Several of the terms used in this bill are undefined or may otherwise prove problematic. The term “100 percent tax credit” is unclear in the tax portion of the bill although the Parkways Authority portion of the bill appears to clarify that it means that the amount of the credit is “100 percent of the … tolls paid.”
The bill does not identify the tax against which the credit may be applied. The bill provides that the credit will be “effective as of July 1, 2023, but apply to all toll payments made within the West Virginia EZ Pass system in Tax Year 2023, as defined in this article.”
The bill allows the State Tax Department and the West Virginia Parkways Authority to promulgate rules “to carry out the policy and purposes of this article, to provide any necessary clarification of the provisions of this article and to efficiently provide for the general administration of this article.” Rules will be necessary because the credit is so poorly defined.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov