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; stating the amount of credit allowed in specified percentages; clarifying contradictory requirements to claim credit; clarifying language relating to use of credit and transfer process; clarifying language to protect transferees; authorizing issuance of rules by the Secretary of Commerce for administration of the film credit; and making amendments retroactively applicable to taxable years beginning after December 31, 2007. As written, this bill would make the base allowance (i.e., 27 percent of expenditures) for the credit permanent. Currently, the 27 percent allowance is only available for tax years beginning prior to January 1, 2010. The bill also makes a number of other technical changes to the West Virginia Film Industry Investment Act. Since the total amount of credit that allocated remains unchanged, it is our interpretation that passage of this bill would not have any effect on revenues. There would be no additional administrative costs to the State Tax Department associated with passage of this bill.



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 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):


As written, this bill would make the base allowance (i.e., 27 percent of expenditures) for the credit permanent. Currently, the 27 percent allowance is only available for tax years beginning prior to January 1, 2010. The bill also makes a number of other technical changes to the West Virginia Film Industry Investment Act. Since the total amount of credit that allocated remains unchanged, it is our interpretation that passage of this bill would not have any effect on revenues. There would be no additional administrative costs to the State Tax Department associated with passage of this bill.



Memorandum






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