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


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


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


    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.
    



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