FISCAL NOTE
FUND(S):
New
Sources of Revenue:
Special Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB 319 proposes an additional 0.20% surcharge on property and casualty premiums and is projected to generate an additional $4,200,000 annual revenue.
Costs are projected at $10,000 for the initial implementation year to cover the costs of adjusting premium tax forms and instructions, providing notification of the new surcharge to insurers, and modifying the remittance processing and tax data system to incorporate the new surcharge.
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 |
10,000 |
0 |
| Personal Services |
0 |
8,000 |
0 |
| Current Expenses |
0 |
2,000 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
1,050,000 |
4,200,000 |
Explanation of above estimates (including long-range effect):
Taxable premium base for insurers and surplus lines is projected at $2,100,000,000.
$2,100,000,000 X .0020 (new surcharge) = $4,200,000 (annually)
Fiscal year 2010's additional revenue reflects one quarter of collections. Effective date of proposal is Jan 1, 2010. First quarter collections of the new surcharge will occur on April 25th. Second quarter surcharge collections are due July 25, 2010, after the close of the 2010 fiscal year.
$4,200,000 X .25 (1 quarter) = $1,050,000.
Personal Services of $8,000 to modify tax forms, data systems and remittance processing.
Current Expenses of $2,000 to notify insurers of the new surcharge.
Memorandum
Person submitting Fiscal Note: Michael D. Riley
Email Address: Michael.Riley@wvinsurance.gov