Date Requested:January 29, 2008
Time Requested:06:08 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2008R1648 Introduced SB499
CBD Subject: ELIMINATE SEVERANCE TAX ON TIMBER
FUND(S)
Division of Forestry Severance Tax Operations Fund
Sources of Revenue
Other Fund see above
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 eliminate the severance tax on timber.
    
    According to our interpretation, this bill would discontinue the Severance Tax on timber, as levied by W. Va. Code §11-13A-3b, effective for tax periods on or after January 1, 2009. Passage of this bill would result in a reduction in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million in Fiscal Year 2009 and roughly $1.7 million in each subsequent year. The decrease in the Division of Forestry’s budget may require a reduction in programs or the designation of alternative funding sources, or a combination of both.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
    

Fiscal Note Detail
Over-all effect
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
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would discontinue the Severance Tax on timber, as levied by W. Va. Code §11-13A-3b, effective for tax periods on or after January 1, 2009. The elimination of the tax would result in a reduction in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million in Fiscal Year 2009 and roughly $1.7 million in each subsequent year. The decrease in the Division of Forestry’s budget may require a reduction in programs or the designation of alternative funding sources, or a combination of both.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
    


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