FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The pupose of this legislation is to allow for the creation of Arts,Entertainment and Enterprise Districts within municipslties or political subdivision. These districts are to designated by the Secretary of Commerce.This bill also provides for tax breaks for qualifying artists, property tax credits, and exemptions from admissions or amusement tax within these districts. It also calls for state funds to be made available to these designated districts for recruitment in and out state of creators of artistic work. No funds currently exist in the Development Office or the Commerce Secretary's to support this program.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
252,000 |
252,000 |
| Personal Services |
0 |
202,500 |
202,500 |
| Current Expenses |
0 |
50,000 |
50,000 |
| 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):
This legislation as written makes it extremely difficult to estimate an annual cost to administer this program. It is not clear on what kind of due diligence will be required to determine if a certain area of a political subdivision meets the intent of this legislation.We are also not sure what amount or kind of state grant and/or loans will be available to these districts. The above cost estimate are based on the cost of hiring and supporting three additional staff to administer this program.
Memorandum
Currently there are very few financial incentives available to bring arts and entertainment enterprises into communities within West Virginia. These enterprises increase the use of buildings for residential and retail purposes, as well as improve the quality of life and attract tourism . Some areas of the country have been very successful with this type of incentive. One of the major problems we see with this legislation is that landowners who have buildings in these districts who do not want to participate in the activities advocated by this legislation will be subject to the highest possible property tax rate avaiable to the political subdivision. A better tool would be to provide incentives to target vacant or unused buildings.
Person submitting Fiscal Note: Carl D Smith
Email Address: carl.d.smith@wv.gov