Date Requested:February 25, 2008
Time Requested:02:29 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2008R2097 Comm. Sub. HB4534
CBD Subject: ONE TIME CREDIT OF $500 FOR PURCHASING A WOOD OR PELLET STOVE
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 permit a one hundred dollar credit against personal income tax for the purchase of new wood and pellet stoves that meet certain criteria.
    
    According to our interpretation, passage of this bill would result in a decrease of less than $50,000 per year to the General Revenue Fund.
    
    The State Tax Department would incur no additional administrative costs 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 -50,000 -50,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to permit a one hundred dollar credit against personal income tax for the purchase of new wood and pellet stoves that meet certain criteria. According to our interpretation, passage of this bill would result in a decrease of less than $50,000 per year to the General Revenue Fund. The wood or pellet stove industry sales are uniquely tied to the larger energy industry. As prices for home heating oil rise, wood or pellet stove sales rise and as oil prices fall so do the sales of the wood or pellet stoves. This creates a volatile market where sales can see extreme fluctuations up or down year to year.
    
    The State Tax Department would incur no additional administrative costs associated with passage of this bill.

Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to permit a one hundred dollar credit against personal income tax for the purchase of new wood and pellet stoves that meet certain criteria.
    
    The proposed bill does not define the term “residential dwelling” which could encompass numerous buildings.