FISCAL NOTE

Date Requested: January 10, 2020
Time Requested: 04:09 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1459 Introduced SB214
CBD Subject: Counties


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Increases Revenue From Existing Sources, Decreases Existing Revenue, Increases Existing Expenses



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, this 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 fees up to $1.50 per ton from the current rate of $0.50 per ton. Additionally, the revenues raised by counties and regional solid waste authorities would be distributed per capital to each county or regional solid waste authority based on the most recent population projections from the United States Census Bureau for the costs of administration of the county or regional solid waste authority including the necessary and reasonable expenses of its members, and any other expenses incurred from refuse cleanup, litter control programs, or any solid waste programs considered necessary to fulfill its duties. As written, the decrease in the State rate would result in a loss to the Closure Cost Assistance Fund of approximately $2.3 million per year for a full year at the new rate. Absent an internal effective date, the provisions of this bill would be effective ninety days from passage. This reduction in State revenue could potentially be replaced by up to $2.3 million in local revenues if all counties elect to raise their fee to $1.50 per ton. Under current law, county governments collect their local solid waste fees. The provisions of this bill fail to provide a mechanism for all counties to pool their individual collections for redistribution on a per capita basis. Proper execution of the proposed revenue distribution formula may require transfer of local responsibilities to the State Tax Department. Additional State Tax Department administrative costs listed below contemplate such change in administration. Additional administrative costs incurred by the State Tax Department would be $35,000 in FY2021 and $10,000 in subsequent fiscal years. There would be additional costs to some counties to redistribute monies to other counties.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 35,000 10,000
Personal Services 0 10,000 10,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 25,000 0
2. Estimated Total Revenues 0 -2,300,000 -2,300,000


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


According to our interpretation, this 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 fees up to $1.50 per ton from the current rate of $0.50 per ton. Additionally, the revenues raised by counties and regional solid waste authorities would be distributed per capital to each county or regional solid waste authority based on the most recent population projections from the United States Census Bureau for the costs of administration of the county or regional solid waste authority including the necessary and reasonable expenses of its members, and any other expenses incurred from refuse cleanup, litter control programs, or any solid waste programs considered necessary to fulfill its duties. As written, the decrease in the State rate would result in a loss to the Closure Cost Assistance Fund of approximately $2.3 million per year for a full year at the new rate. Absent an internal effective date, the provisions of this bill would be effective ninety days from passage. This reduction in State revenue could potentially be replaced by up to $2.3 million in local revenues if all counties elect to raise their fee to $1.50 per ton. Under current law, county governments collect their local solid waste fees. The provisions of this bill fail to provide a mechanism for all counties to pool their individual collections for redistribution on a per capita basis. Proper execution of the proposed revenue distribution formula may require transfer of local responsibilities to the State Tax Department. Additional State Tax Department administrative costs listed below contemplate such change in administration. Additional administrative costs incurred by the State Tax Department would be $35,000 in FY2021 and $10,000 in subsequent fiscal years. There would be additional costs to some counties to redistribute monies to other counties.



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 fees under W.Va. Code ยง7-5-22 are collected and administered by the county. It is unclear how county and regional authorities are managed and the determination of population on such authorities may be difficult. This bill does not have an internal effective date. Therefore, it will be effective ninety days after passage.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov