FISCAL NOTE
FUND(S):
Local Government Funds
Sources of Revenue:
General Fund,Other Fund local government funds
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 prohibit the Tax Commissioner from issuing a new business registration certificate to any new business owned, managed, operated by or in which any person participated as a member of a board of directors, partner, manager or member director of a business that is delinquent in the payment of personal property taxes.
According to our interpretation, passage of this bill may result in a slight enhancement of revenue for local governments if some prior personal property delinquencies are resolved by persons applying for a new business registration certificate. The impact on State revenue attributable to passage of this bill would be minimal. However, new businesses may experience some delay in the receipt of their business license due to the proposed additional screening requirements.
Implementation of this bill will result in a significant increase in administrative costs for the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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 would prohibit the State Tax Commissioner from issuing a new business registration certificate to any new business owned, managed, operated by or in which any person participated as a member of a board of directors, partner, manager or member director of a business that is delinquent in the payment of personal property taxes.
According to our interpretation, passage of this bill may result in a slight enhancement of revenue for local governments if some prior personal property delinquencies are resolved by persons applying for a new business registration certificate. The impact on State revenue attributable to passage of this bill would be minimal. However, new businesses may experience some delay in the receipt of their business license due to the proposed additional screening requirements.
The bill, as written, does not provide guidance on how the State Tax Commissioner is to verify that business registration certificate applicants have delinquent personal property tax liabilities. Assuming that the verification process of comparing new business registration certificate applicants against delinquent personal property tax roles would require the development and maintenance of new databases, implementation of this bill will result in a significant increase in administrative costs for the State Tax Department. Also, additional staff may be necessary to manually review the information.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us