FISCAL NOTE
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road 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 establish a flat-rate excise tax on motor fuels at $.205.
The passage of this bill would keep the current flat rate component of the Motor Fuel Excise Tax at 20.5 cents per gallon until August 1, 2013. Otherwise, the scheduled tax rate decrease would result in a loss of roughly $45 million in FY2008 and $55 million thereafter.
Additional administrative costs to the State Tax Department would be minimal during the current fiscal year. Thereafter, there would be no additional administrative costs.
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 |
2,873 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
2,873 |
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):
The stated purpose of this bill is to establish a flat-rate excise tax on motor fuels at $.205.
The passage of this bill would keep the current flat rate component of the Motor Fuel Excise Tax at 20.5 cents per gallon until August 1, 2013. Otherwise, the scheduled tax rate decrease would result in a loss of roughly $45 million in FY2008 and $55 million thereafter.
Additional administrative costs to the State Tax Department would be minimal during the current fiscal year. Thereafter, there would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us