FISCAL NOTE
FUND(S):
County Coal Revenue Fund, All Counties and Municipalities Fund, County Severance Revenue Fund
Sources of Revenue:
Other Fund see above
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 defray the costs to counties and municipalities for the expense of transporting citizens to Washington, D.C. for a procoal rally held on May 9, 2009.
According to our interpretation, the bill appears to redirect one percent of the “additional tax on coal” for Fiscal Year 2010 from the County Coal Revenue Fund and All Counties and Municipalities Fund to the newly created County Severance Revenue Fund. The money in the County Severance Revenue Fund would be distributed to counties and municipalities at the direction of the Legislature for the purpose of reimbursing counties and municipalities for the costs of transporting citizens to the procoal rally held in Washington, D.C. on May 9, 2009. Although there would be no change in total collections of the “additional tax on coal,” it is estimated that for Fiscal Year 2010 the County Severance Revenue Fund would receive roughly $200,000 to $300,000, while a reduction of the same magnitude would occur in the County Coal Revenue Fund and All Counties and Municipalities Fund.
Additional administrative costs to the State Tax Department associated with this bill would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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):
According to our interpretation, the bill appears to redirect one percent of the “additional tax on coal” for Fiscal Year 2010 from the County Coal Revenue Fund and All Counties and Municipalities Fund to the newly created County Severance Revenue Fund. The money in the County Severance Revenue Fund would be distributed to counties and municipalities at the direction of the Legislature for the purpose of reimbursing counties and municipalities for the costs of transporting citizens to the procoal rally held in Washington, D.C. on May 9, 2009. Although there would be no change in total collections of the “additional tax on coal,” it is estimated that for Fiscal Year 2010 the County Severance Revenue Fund would receive roughly $200,000 to $300,000, while a reduction of the same magnitude would occur in the County Coal Revenue Fund and All Counties and Municipalities Fund.
Additional administrative costs to the State Tax Department associated with this bill would be minimal.
Memorandum
The stated purpose of this bill is to defray the costs to counties and municipalities for the expense of transporting citizens to Washington, D.C. for a procoal rally held on May 9, 2009.
As written, the bill appears to make changes other than those denoted by strike-through and underlining. The additional changes could lead to a different interpretation of the bill than what was intended. Also, proposed W. Va. Code §11-13A-6(d) reads in part “In order to provide a procedure for the distribution of the one percent of every $1 million of the tax annually generated from the tax imposed under this section for fiscal year 2010, . . .” The reference to “annually” and to a specific fiscal year (i.e., fiscal year 2010) may lead to some confusion as to whether or not the provision pertains to a single year or is an ongoing provision.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov