FISCAL NOTE



FUND(S):

General Revenue Fund

Sources of Revenue:

General 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 levy a minimum corporation income tax. As written, this bill would levy a minimum Corporation Net Income Tax of $250 on corporations doing business in West Virginia and having gross sales of goods or service in excess of $1,000,000. According to our interpretation, passage of this bill would result in an increase in the General Revenue Fund of less than $0.5 million per year. Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.



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 impose a minimum Corporation Net Income Tax of $250 on corporations doing business in West Virginia and having gross sales of goods or service in excess of $1,000,000. According to our interpretation, passage of this bill would result in an increase in the General Revenue Fund of less than $0.5 million per year. Receipts from the minimum tax would be higher during sluggish economic periods and lower during periods of economic prosperity. Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us