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 exempt voluntary associations and nonprofit organizations from the annual fee of Secretary of State as attorney-in-fact.
As written, the proposed bill exempts every domestic and foreign corporation and limited partnership that is established as a voluntary association or nonprofit organization from the annual twenty five dollar attorney-in-fact fee. However, the annual fee will be paid by voluntary associations and nonprofit organizations if services by the Secretary of State are actually rendered. According to our interpretation, the loss to the General Revenue Fund as a result of passage of this bill would be up to $135,000 per year. The Office of Secretary of State would incur a similar loss to the service fees and collections account established by §59-1-2 W. Va. Code.
Additional administrative cost to the State Tax Department associated with passage of this bill would be approximately $30,000 in Fiscal Year 2008.
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 |
29,865 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
29,865 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-135,000 |
-135,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to exempt voluntary associations and nonprofit organizations from the annual fee of Secretary of State as attorney-in-fact.
As written, the proposed bill exempts every domestic and foreign corporation and limited partnership that is established as a voluntary association or nonprofit organization from the annual twenty five dollar attorney-in-fact fee. However, the annual fee will be paid by voluntary associations and nonprofit organizations if services by the Secretary of State are actually rendered. According to our interpretation, the loss to the General Revenue Fund as a result of passage of this bill would be up to $135,000 per year. The Office of Secretary of State would incur a similar loss to the service fees and collections account established by §59-1-2 W. Va. Code.
Additional administrative cost to the State Tax Department associated with passage of this bill would be $29,865 in Fiscal Year 2008 for printing, postage and supplies.
Memorandum
The stated purpose of this bill is to exempt voluntary associations and nonprofit organizations from the annual fee of Secretary of State as attorney-in-fact.
It may be problematic that such entities would benefit from having the Secretary of State as an attorney-in-fact without having to pay for such benefit, until the Secretary “renders services.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us