Date Requested:January 12, 2011
Time Requested:04:41 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1060 Introduced HB2288
CBD Subject: NET INCOME TAX
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 decrease the corporate income tax rate beginning in the year 2012 by eliminating the higher tax rate should the combined balance in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund - Part B not equal or exceed ten percent of the General Revenue Fund.
    
    As written, this bill would repeal language that would forestall scheduled reductions in the Corporation Net Income Tax rate for tax years beginning on or after January 1, 2012, January 1, 2013, and January 1, 2014 in the event that the combined balance in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund - Part B does not equal or exceed 10 percent of the General Revenue Fund. As of December 31, 2010, the combined balances of the two specified funds were in excess of 10 percent of projected General Revenue Fund totals presented in the State of West Virginia FY2012 Executive Budget. Absent a significant catastrophic event that would require significant depletion of these funds or policy initiatives that would significantly increase government expenditures, passage of this bill would have no additional fiscal impact upon future State revenues.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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):
    As written, this bill would repeal language that would forestall scheduled reductions in the Corporation Net Income Tax rate for tax years beginning on or after January 1, 2012, January 1, 2013, and January 1, 2014 in the event that the combined balance in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund - Part B does not equal or exceed 10 percent of the General Revenue Fund. As of December 31, 2010, the combined balances of the two specified funds were in excess of 10 percent of projected General Revenue Fund totals presented in the State of West Virginia FY2012 Executive Budget. Absent a significant catastrophic event that would require significant depletion of these funds or policy initiatives that would significantly increase government expenditures, passage of this bill would have no additional fiscal impact upon future State revenues.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov