Date Requested:January 18, 2011
Time Requested:01:56 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1688 Introduced HB2529
CBD Subject: HOME HEATING OIL EXEMPTION
FUND(S)
General Revenue Fund
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 stated purpose of this bill is to authorize a corporation net income tax credit for reducing charges for home heating fuel and propane gas provided to low-income residents.
    
    As written, this bill would provide for a tax credit to Corporation Net Income Tax filers that provide heating fuel or propane gas service to qualified low-income residential customers at special reduced rates. Similar to an existing program that provides a tax credit for reducing electric and natural gas rates for low-income customers, the credit proposed by this bill requires the Public Service Commission to certify the amount of the revenue deficiency incurred by the entity providing the special reduced rate. The State Tax Department does not have access to the data necessary to estimate the revenue impact of this proposed tax credit.
    
    The proposed tax credit legislation provides that a copy of the Public Service Commission certification of the revenue deficiency incurred by the taxpayer be attached to the annual return upon which the credit is claimed. However, the Public Service Commission does not generally regulate providers of home heating fuel and propane gas. If the State Tax Department is required to independently verify the amount of eligible credit, additional administrative costs to the State Tax Department could be significant. Additionally, the Public Service Commission may incur additional administrative costs due to this bill.

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 provide for a tax credit to Corporation Net Income Tax filers that provide heating fuel or propane gas service to qualified low-income residential customers at special reduced rates. Similar to an existing program that provides a tax credit for reducing electric and natural gas rates for low-income customers, the credit proposed by this bill requires the Public Service Commission to certify the amount of the revenue deficiency incurred by the entity providing the special reduced rate. The State Tax Department does not have access to the data necessary to estimate the revenue impact of this proposed tax credit.
    
    The proposed tax credit legislation provides that a copy of the Public Service Commission certification of the revenue deficiency incurred by the taxpayer be attached to the annual return upon which the credit is claimed. However, the Public Service Commission does not generally regulate providers of home heating fuel and propane gas. If the State Tax Department is required to independently verify the amount of eligible credit, additional administrative costs to the State Tax Department could be significant. Additionally, the Public Service Commission may incur additional administrative costs due to this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to authorize a corporation net income tax credit for reducing charges for home heating fuel and propane gas provided to low-income residents.
    
    As written, the proposed bill is based upon the provision of heating fuel and propane to “qualified low-income residential customers.” However, the bill does not adequately define “qualified low-income residential customers.” Also, the bill makes several references to Article 13G of the West Virginia Code. Although Article 13G of the West Virginia Code addresses a tax credit for reducing telephone utility rates for certain low-income residential customers, this may not be the appropriate reference.
    
    The proposed tax credit legislation provides that a copy of the Public Service Commission certification of the revenue deficiency incurred by the taxpayer be attached to the annual return upon which the credit is claimed. However, the Public Service Commission does not generally regulate providers of home heating fuel and propane gas.