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