Date Requested:March 29, 2005
Time Requested:02:41 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
Engrossed SB746
CBD Subject: Severing Timber
FUND(S)
Forestry Tax Fund
Sources of Revenue
Other Fund Forestry Tax 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 reduce the severance tax rate on timber from three and twenty-two hundredths percent to one and twenty-two hundredths percent on December 31, 2005.
    
    According to our interpretation and based upon available data, passage of this bill would result in a net loss to the Forestry Tax Fund of approximately $800,000 in 2006, and $2.0 million each year thereafter.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.

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 -800,000 -2,000,000
3. Explanation of above estimates (including long-range effect):
    According to our interpretation and based upon available data, passage of this bill would result in a net loss to the Forestry Tax Fund of approximately $800,000 in 2006, and $2.0 million each year thereafter.
    
    Additional administrative costs to the State Tax Department associated with this bill would be due to the printing and promotional expense of notifying taxpayers.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us