FISCAL NOTE
Date Requested: February 09, 2017
Time Requested: 08:07 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2110 |
Introduced |
SB179 |
|
|---|
| CBD Subject: |
Banking and Finance, 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 assess a fee on wire transfers with an equivalent tax credit in order to capture transfers more likely to contain the proceeds of drug trafficking sent from nonresidents.
According to our interpretation, the proposed bill would place a 1 percent fee on any wireless or electronic transfer that originates in West Virginia. Further, West Virginia residents are allowed a credit against the Personal Income Tax for fees paid in such a transaction. Due to data limitations, the revenue impact of this proposed bill cannot be determined. However, it is anticipated that the revenue increase of imposing such fees and the offsetting revenue decrease of refunding fees paid would be minimal and may be essentially revenue neutral given that West Virginia residents are allowed to recoup fees via the proposed tax credit.
Additional administrative costs to the State Tax Department would be $10,000 in FY2018.
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 |
10,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
10,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would place a 1 percent fee on any wireless or electronic transfer that originates in West Virginia. Further, West Virginia residents are allowed a credit against the Personal Income Tax for fees paid in such a transaction. Due to data limitations, the revenue impact of this proposed bill cannot be determined. However, it is anticipated that the revenue increase of imposing such fees and the offsetting revenue decrease of refunding fees paid would be minimal and may be essentially revenue neutral given that West Virginia residents are allowed to recoup fees via the proposed tax credit.
Additional administrative costs to the State Tax Department would be $10,000 in FY2018.
Memorandum
The stated purpose of this bill is to assess a fee on wire transfers with an equivalent tax credit in order to capture transfers more likely to contain the proceeds of drug trafficking sent from nonresidents.
The proposed bill declares entitlement to an income tax credit but does not provide any other guidance and does not amend Chapter 11. Further, the bill does not capitalize “commissioner,” which is a defined term in West Virginia Code §32A-2. As proposed, there could be concern of equal protection under the law as non-residents would pay the fee but would not be provided the option to utilize the credit.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov