Date Requested:March 24, 2009
Time Requested:11:27 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009R2982 Introduced SB680
CBD Subject: MOTOR FUEL EXCISE TAX
FUND(S)
State Road Fund
Sources of Revenue
Other Fund State Road 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 freeze the variable rate component of the motor fuel excise tax for the 2010 calendar year at the current rate and to eliminate the article which created a funding mechanism to offset revenue shortfalls in the State Road Fund.
    
    As written, the passage of this bill would have no impact upon the official estimate of Motor Fuel Tax revenue. The official Motor Fuel Tax estimate for FY2010 is based upon an assumption of no change in prices. The provisions of this bill would effectively eliminate any risk of either an upward adjustment based upon higher fuel prices or a downward adjustment based upon lower fuel prices. Also, the bill removes W.Va. Code §11-14C-48, which provided a funding mechanism to offset revenue shortfalls in the State Road Fund. As of March 1, 2009, a remaining balance of $27,319,224.03 remained in this account.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    

Fiscal Note Detail
Over-all effect
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
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to freeze the variable rate component of the motor fuel excise tax for the 2010 calendar year at the current rate and to eliminate the article which created a funding mechanism to offset revenue shortfalls in the State Road Fund.
    
    As written, the passage of this bill would have no impact upon the official estimate of Motor Fuel Tax revenue. The official Motor Fuel Tax estimate for FY2010 is based upon an assumption of no change in prices. The provisions of this bill would effectively eliminate any risk of either an upward adjustment based upon higher fuel prices or a downward adjustment based upon lower fuel prices. Also, the bill removes W.Va. Code §11-14C-48, which provided a funding mechanism to offset revenue shortfalls in the State Road Fund. As of March 1, 2009, a remaining balance of $27,319,224.03 remained in this account.
    
    The current wholesale price of fuel for the purposes of this tax is $2.34.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    


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