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 specify authority of the Tax Commissioner to designate Tax Division documents that may be sent by personal service, United States postal service, regular mail, certified mail or registered mail or other means; specify statutory burden of proof and presumption against tax exemptions; specify inflation adjustment for certain economic opportunity tax credit entitlement requirements; specify exclusion of sales and use of certain motor vehicles and certain trailers and classes of vehicle and vehicular apparatus from state consumers sales and use tax on certain vehicles; specify exclusion of sales and use of certain motor vehicles and certain trailers and classes of vehicle and vehicular apparatus from municipal and local consumers sales and service tax and use tax, or special downtown redevelopment district excise tax, or special district excise tax, and other sales taxes; authorize discretionary designation of per se exemptions from the consumers sales and service tax and use tax by the Tax Commissioner; specify a technical correction, correcting the reference to the licensing provision from chapter eleven to chapter seventeen-a; specify exclusion of federal alternative minimum income tax payers from eligibility for property tax payment deferment and assessor’s denial of deferment; disqualify persons who pay the federal alternative minimum income tax in specified years from qualification for the senior citizen’s tax credit under chapter eleven, article twenty-one of the West Virginia Code: disqualifying persons who pay the federal alternative minimum income tax in specified years from qualification for the low-income family tax credit; disqualify persons who pay the federal alternative minimum income tax in specified years from qualification for the refundable tax credit for real property taxes paid in excess of four percent of income; specify that senior citizen property tax relief credit is not authorized for tax years beginning on or after January 1, 2009; define terms; specify treatment of certain income and deduction items for certain regulated investment companies and real estate investment companies; authorize state income tax withholding from the individual's payment of unemployment compensation; and specify effective dates. According to our interpretation, this bill primarily makes a number of technical corrections and administrative enhancements. Passage of this bill would have a minimal impact on State and local revenue. Passage of this bill may result in an increase in administrative costs attributable to some provisions of the bill. However, the provision to authorize the State Tax Commissioner to designate the mail delivery methodology for certain State Tax Department documents may result in lower mailing costs of roughly $50,000 per year.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -50,000 -50,000
Personal Services 0 0 0
Current Expenses 0 -50,000 -50,000
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):


According to our interpretation, this bill primarily makes a number of technical corrections and administrative enhancements. Passage of this bill would have a minimal impact on State and local revenue. Passage of this bill may result in an increase in administrative costs attributable to some provisions of the bill. However, the provision to authorize the State Tax Commissioner to designate the mail delivery methodology for certain State Tax Department documents may result in lower mailing costs of roughly $50,000 per year.



Memorandum






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