FISCAL NOTE
Date Requested: March 01, 2016
Time Requested: 11:48 AM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2236 |
Introduced |
HB4209 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to extend the expiration date for the tax rate on eligible acute care hospitals.
The bill also increases the tax rate from seventy-two one hundredths of one percent to seventy-four one hundredths of one percent. The extension of the tax and the tax rate increase will result in a gain of $15.0 million in FY2017 for a total of $20.0 million. Collections would total roughly $5 million in FY2018 due to a quarterly payment due date following the expiration of the tax. The provisions of this bill would extend the sunset date of a temporary tax on acute care hospitals for an additional fiscal year with a new termination date of June 30, 2017.
Administrative costs to the Tax Department will be $1,100 in the current fiscal year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The bill also increases the tax rate from seventy-two one hundredths of one percent to seventy-four one hundredths of one percent. The extension of the tax and the tax rate increase will result in a gain of $15.0 million in FY2017 for a total of $20.0 million. Collections would total roughly $5 million in FY2018 due to a quarterly payment due date following the expiration of the tax. The provisions of this bill would extend the sunset date of a temporary tax on acute care hospitals for an additional fiscal year with a new termination date of June 30, 2017.
Administrative costs to the Tax Department will be $1,100 in the current fiscal year.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov