FISCAL NOTE
Date Requested: January 09, 2019
Time Requested: 05:20 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1761 |
Introduced |
SB147 |
|
|---|
| CBD Subject: |
County Officials |
|---|
|
FUND(S):
Closure Cost Assistance Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to shift funding from the Landfill Closure Assistance Fund, which was set up in 1991 to properly close old landfills across the state, to local solid waste authorities.
According to the 2017 West Virginia Solid Waste Management Plan, 28 of the 35 old landfills have been properly remediated by the fund. Given the progress made towards closure of the old landfills, the portion of the solid waste fee assessed on landfill deposits, which is currently sent to the fund, is being reduced in order to accommodate an in-kind increase in the portion of the solid waste fee charged by county or regional solid waste authorities to fund various recycling, litter control, and other locally important solid waste program. Additionally, this bill would allow for a reduction in the use of county commission/county tax dollars currently utilized to support various recycling, litter control, and other locally important solid waste programs.
According to our interpretation, the proposed bill would decrease the State solid waste assessment fee from $3.50 per ton to $2.50 per ton and would allow counties or regional solid waste authorities to raise county solid waste assessment fee rates up to $1.50 per ton from the current rate of $0.50 per ton. As written, the decrease in the State rate would result in a loss to the Closure Cost Assistance Fund of approximately $2.1 million per year for a full year at the new rate. Absent an internal effective date, provisions of this bill would be effective ninety days from passage. This provision would result in a State revenue loss of roughly $2.1 million in FY2020 and thereafter.
In the aggregate, county and regional solid waste authorities could realize increased revenues of roughly $2.1 million per year on an annualized basis. The amount of annual revenues would depend on current rates, some of which may be less than the $0.50 per ton cap allowed by statute, and the amount each entity chooses to increase up to the new proposed cap. Further, timing of revenue increases would depend on the dates upon which such rate increases would be made effective.
Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2020.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
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 |
-2,100,000 |
-2,100,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would decrease the State solid waste assessment fee from $3.50 per ton to $2.50 per ton and would allow counties or regional solid waste authorities to raise county solid waste assessment fee rates up to $1.50 per ton from the current rate of $0.50 per ton. As written, the decrease in the State rate would result in a loss to the Closure Cost Assistance Fund of approximately $2.1 million per year for a full year at the new rate. Absent an internal effective date, provisions of this bill would be effective ninety days from passage. This provision would result in a State revenue loss of roughly $2.1 million in FY2020 and thereafter.
In the aggregate, county and regional solid waste authorities could realize increased revenues of roughly $2.1 million per year on an annualized basis. The amount of annual revenues would depend on current rates, some of which may be less than the $0.50 per ton cap allowed by statute, and the amount each entity chooses to increase up to the new proposed cap. Further, timing of revenue increases would depend on the dates upon which such rate increases would be made effective.
Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2020.
Memorandum
The stated purpose of this bill is to shift funding from the Landfill Closure Assistance Fund, which was set up in 1991 to properly close old landfills across the state, to local solid waste authorities.
According to the 2017 West Virginia Solid Waste Management Plan, 28 of the 35 old landfills have been properly remediated by the fund. Given the progress made towards closure of the old landfills, the portion of the solid waste fee assessed on landfill deposits, which is currently sent to the fund, is being reduced in order to accommodate an in-kind increase in the portion of the solid waste fee charged by county or regional solid waste authorities to fund various recycling, litter control, and other locally important solid waste program. Additionally, this bill would allow for a reduction in the use of county commission/county tax dollars currently utilized to support various recycling, litter control, and other locally important solid waste programs.
The bill accomplishes its purpose, but there are concerns and a title defect. The bill states that changes related “to shift funding from the Landfill Closure Assistance Fund to local sold waste authorities.” This language is ambiguous. The bill title does not specifically mention the decrease in the solid waste assessment fee under W.Va. Code §22-16-4, or the increase in the count solid waste assessment fees authorized under W.Va. Code §7-5-22.
Second, the bill refers to the “Landfill Closure Assistance Fund”, but there does not appear to be a fund with such a name. W.Va. Code §22-16-4 is dedicated to the “Closure Cost Assistance Fund,” and it helps to fund the Solid Waste Landfill Closure Assistance Program.
Furthermore, W.Va. Code §22-16-4, dedicates the solid waste assessment fee to more than just the Closure Cost Assistance Fund, but those other dedications are not addressed in the bill title.
There is no internal effective date in this bill.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov