Date Requested:June 01, 2009
Time Requested:10:09 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009X4015 Introduced HB113
CBD Subject: Higher Ed., Tourism & Capital Improvments
FUND(S)
Lottery and 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 reissue revenue bonds for tourism and education and to provide a procedure for the selection of projects to receive moneys resulting from such bonds.
    
    As written, this bill provides for the issuance of up to $150 million in revenue bonds for constructing, equipping, improving and maintaining capital improvement projects for higher education, state parks, the State Capitol complex or other state facilities or tourism sites. The bonds will be secured by lottery proceeds. For taxation purposes, the interest on most State and local obligations is not included in federal adjusted gross income. Since the starting point of the West Virginia Personal Income Tax is federal adjusted gross income, the interest is not included in taxable income. Therefore, passage of this bill would only have a minimal impact on State tax revenue.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal. The Lottery Commission, Higher Education Policy Commission, and certain other State agencies involved in selecting projects for funding may incur additional administrative costs due to 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):
    This bill, as written, provides for the issuance of up to $150 million in revenue bonds for constructing, equipping, improving and maintaining capital improvement projects for higher education, state parks, the State Capitol complex or other state facilities or tourism sites. The bonds will be secured by lottery proceeds. For taxation purposes, the interest on most State and local obligations is not included in federal adjusted gross income. Since the starting point of the West Virginia Personal Income Tax is federal adjusted gross income, the interest is not included in taxable income. Therefore, passage of this bill would only have a minimal impact on State tax revenue. The cost and revenue information in the table above reflects only State Tax Department costs and State Tax revenue.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal. The Lottery Commission, Higher Education Policy Commission, and certain other State agencies involved in selecting projects for funding may incur additional administrative costs due to passage of this bill.
    


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