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 authorize county commissions to create a joint emergency service agency in lieu of an emergency ambulance service authority, county fire association or county fire board.
In addition to authorizing the creation of a joint emergency service agency, this bill, as written, specifies how the agency is to be managed and the composition of the management board. Additional provisions provide for the establishment of regular meetings, the fiscal year, and the designation of the joint agency as a public corporation. Also, the bill indicates the joint agency is not subject to regulation by the Public Service Commission and that the agency is exempt from taxes except for the Health Care Provider Tax on providers of emergency ambulance services. The bill provides that County commissions may impose and collect fees from users of emergency response services.
According to our interpretation, passage of this bill would have little or no impact on State revenue. Since the agencies (i.e., emergency ambulance service authority, county fire association or county fire board) that the joint emergency service agency essentially replaces are generally exempt from taxes on income and sales, the similar exemption for the joint agency will have minimal revenue consequences. The State Tax Department does not possess the necessary information to estimate the potential change in revenue for County Commissions.
Additional administrative costs to the State Tax Department associated with this bill may be roughly $60,000 per year for the audit and examination of books, records and account of the joint emergency service board by the State Tax Department. However, audits of local government entities are generally under the purview of the State Auditor’s Office.
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 |
60,000 |
60,000 |
| Personal Services |
0 |
50,000 |
50,000 |
| Current Expenses |
0 |
0 |
10,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
10,000 |
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 authorize county commissions to create a joint emergency service agency in lieu of an emergency ambulance service authority, county fire association or county fire board. This bill, as written, specifies how the agency is to be managed and the composition of the management board. Additional provisions provide for the establishment of regular meetings, the fiscal year, and the designation of the joint agency as a public corporation. Also, the bill indicates the joint agency is not subject to regulation by the Public Service Commission and that the agency is exempt from taxes except for the Health Care Provider Tax on providers of emergency ambulance services. The bill provides that County commissions may impose and collect fees from users of emergency response services.
According to our interpretation, passage of this bill would have little or no impact on State revenue. Since the agencies (i.e., emergency ambulance service authority, county fire association or county fire board) that the joint emergency service agency essentially replaces are generally exempt from taxes on income and sales, the similar exemption for the joint agency will have minimal revenue consequences. The State Tax Department does not possess the necessary information to estimate the potential change in revenue for County Commissions.
Additional administrative costs to the State Tax Department associated with this bill may be roughly $60,000 per year for the audit and examination of books, records and account of the joint emergency service board by the State Tax Department. The additional costs would be for the hiring of an additional auditor. However, audits of local government entities are generally under the purview of the State Auditor’s Office.
Memorandum
The stated purpose of this bill is to authorize county commissions to create a joint emergency service agency in lieu of an emergency ambulance service authority, county fire association or county fire board.
As written, the bill indicates the books, records and accounts of the board of the joint emergency service agency would be subject to audit by the office of the State Tax Commissioner. However, audits of local government entities are generally under the purview of the State Auditor’s Office.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us