Date Requested:March 23, 2005
Time Requested:03:18 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1874 Intro SB730
CBD Subject: Grant Recipients Provide Healthcare
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program
Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to require that in order to be eligible to claim the Economic Opportunity Tax Credit, a taxpayer must provide certain health care benefits to its employees.
    
    According to our interpretation, passage of this bill would have a minimal impact on General Revenue Fund revenue.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill. However, the Insurance Commission may experience an increase in administrative costs in order to provide the required certification.
Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")		 2006
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 0 0
3. Explanation of above estimates (including long-range effect):
    This bill would require a taxpayer to provide certain health care benefits to its employees in order to be eligible to claim the Economic Opportunity Tax Credit.
    
    Passage of this bill would have a minimal impact on General Revenue Fund revenue.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill. However, the Insurance Commission may experience an increase in administrative costs in order to provide the required certification.

Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to require that in order to be eligible to claim the Economic Opportunity Tax Credit, a taxpayer must provide certain health care benefits to its employees.
    
    As written, the bill requires the Insurance Commissioner to certify that “the taxpayer provides to its employees in this state health care benefits at least equivalent to the benefit coverage and employer contribution in plans approved pursuant to section sixteen, article sixteen-d, chapter thirty-three of this code.” However, the bill does not provide guidance as to whether the certification is only required at the time of credit application or annually for the life of the credit (the Economic Opportunity Tax Credit is generally claimed over a ten-year period). Also, additional guidance may be necessary to clarify whether the taxpayer must provide the health care benefits to employees in the new jobs resulting from the investment or to all employees.