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 amend the West Virginia Film Industry Investment Act through clarifying definitions; restricting double use of expenditures for different credits; clarifying the application of the credits; requiring certification of eligibility by the West Virginia Film Office, providing further clarification of the information to be filed by an eligible company; authorizing the transfer or sale of credits; expanding the tax credit review information to be provided to the Legislature; and making the amendments to the article applicable to all taxable years beginning after the thirty-first day of December, two thousand seven.
As written, the bill largely makes technical and policy corrections to a bill passed during the 2007 Legislative Session. Changes proposed by this bill include: designating the West Virginia Film Office as the entity to which potential applicants are to apply for the credit; designating the Film Office as the entity determining the eligibility of projects for the credit and approving and allocating the authorized credit (up to $10 million per year); designating the Film Office as the entity to approve the sale or transfer of allocated credits; and, designating the Film Office as the entity responsible for submitting a tax credit review and accountability report on utilization of the credit.
According to our interpretation, since the proposed changes do not increase the amount of credit that would be available, passage of this bill will not have an impact on revenue.
There would be no additional administrative costs to the State Tax Department associated with this bill. However, the West Virginia Film Office may incur additional administrative costs due to passage of this bill.
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 amend the West Virginia Film Industry Investment Act through clarifying definitions; restricting double use of expenditures for different credits; clarifying the application of the credits; requiring certification of eligibility by the West Virginia Film Office, providing further clarification of the information to be filed by an eligible company; authorizing the transfer or sale of credits; expanding the tax credit review information to be provided to the Legislature; and making the amendments to the article applicable to all taxable years beginning after the thirty-first day of December, two thousand seven.
As written, the bill largely makes technical and policy corrections to a bill passed during the 2007 Legislative Session. Changes proposed by this bill include: designating the West Virginia Film Office as the entity to which potential applicants are to apply for the credit; designating the Film Office as the entity determining the eligibility of projects for the credit and approving and allocating the authorized credit (up to $10 million per year); designating the Film Office as the entity to approve the sale or transfer of allocated credits; and, designating the Film Office as the entity responsible for submitting a tax credit review and accountability report on utilization of the credit.
According to our interpretation, since the proposed changes do not increase the amount of credit that would be available, passage of this bill will not have an impact on revenue.
There would be no additional administrative costs to the State Tax Department associated with this bill. However, the West Virginia Film Office may incur additional administrative costs due to passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us