FISCAL NOTE
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 enhance the operational efficiency and investigative scope of the Tax Department Criminal Investigation Division and Special Audits Division by authorizing Criminal Investigation Division and Special Audits Division to perform investigations, audits and examinations pertaining to taxes, fees or credits administered under chapter 11, article ten of the West Virginia Code, including personal income tax audits and investigations.
As written, this bill would remove the prohibition of including the Personal Income Tax in the review of tax compliance conducted by the State Tax Department Criminal Investigation Division and Special Audits Division. In recent years, many businesses have chosen a pass-through organizational type as opposed to a C-corporation. The growth of partnerships and limited liability companies makes the Personal Income Tax more important in the context of general investigation of tax evasion, tax fraud and tax crimes. In promoting greater compliance with tax laws, passage of this bill will result in an increase in revenue. However, the increase in revenue cannot be accurately estimated.
There would be no additional administrative costs to the State Tax Department associated with this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
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 |
Explanation of above estimates (including long-range effect):
Passage of this bill will enhance the operational efficiency and investigative scope of the State Tax Department Criminal Investigation and Special Audits Divisions by authorizing the Divisions to perform investigations, audits and examinations pertaining to taxes, fees or credits administered under chapter 11, article ten of the West Virginia Code, including personal income tax audits and investigations.
As written, this bill would remove the prohibition of including the Personal Income Tax in the review of tax compliance conducted by the State Tax Department Criminal Investigation Division and Special Audits Division. In recent years, many businesses have chosen a pass-through organizational type as opposed to a C-corporation. The growth of partnerships and limited liability companies makes the Personal Income Tax more important in the context of general investigation of tax evasion, tax fraud and tax crimes. In promoting greater compliance with tax laws, passage of this bill will result in an increase in revenue. However, the increase in revenue cannot be accurately estimated.
There would be no additional administrative costs to the State Tax Department associated with this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us