FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 01:30 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
3183 Introduced HB3058
CBD Subject: Taxation


FUND(S):

1331

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.


If enacted, House Bill 3058 would increase revenues derived from insurance premium taxes under §33-3-14a for a period of two years. An increase of 1/2 percent in the premium tax rate is estimated to yield an additional $19,543,247 annually, if the rate increase is in effect for an entire fiscal year.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 19,543,247 39,086,494


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


Estimate of One-half Percent of Additional Premium Tax Tax Year Taxable Premiums 1% Tax Proposed ½% Increase FY18 $3,908,649,366 $39,086,494 $19,543,247 FY19 $3,908,649,366 $39,086,494 $19,543,247 Total $39,086,494 Estimates based on FY16 collections.



Memorandum


If enacted, House Bill 3058, would increase the additional premium tax revenue collected under §33-3-14a from the current level of one percent to a rate of one and one-half percent of taxable premiums. The additional revenue collected would be for the State General Revenue Fund. The additional one-half percent tax would remain in effect for two years. HB3058 does not specify the effective date for the increased tax rate, or the fiscal years for which the increased tax rate would be in effect. If made effective by July 1, 2017 (fiscal year 2018), the increased revenues are estimated to be as indicated above.



    Person submitting Fiscal Note: Melinda Ashworth Kiss
    Email Address: Melinda.A.Kiss@wv.gov