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


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


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