Date Requested:January 24, 2011
Time Requested:04:44 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1477 Introduced HB2785
CBD Subject: TRANSFERRING REAL PROPERTY
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund local governments
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 provide that the state excise tax on the privilege of transferring real property tax be used to reimburse counties for regional jail fees.
    
    As written, the bill would require that State portion of the excise tax of the transfer of real property be expended to reimburse counties for regional jail fees. The bill would have no effect on collections for this tax, which are estimated to be $8.1 million in FY2012. However, the provisions of this bill would effectively reduce State General Revenue Fund resources by $8.1 million or more per year as proceeds of the tax would be earmarked for the benefit of county commissions.
    
    There would be no additional costs to the State Tax Department due to passage of this bill. However, other agencies could incur costs in determining the amounts to be paid to counties for regional jail fees.
    

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, the bill would require that State portion of the excise tax of the transfer of real property be expended to reimburse counties for regional jail fees. The bill would have no effect on collections for this tax, which are estimated to be $8.1 million in FY2012. However, the provisions of this bill would effectively reduce State General Revenue Fund resources by $8.1 million or more per year as proceeds of the tax would be earmarked for the benefit of county commissions.
    
    There would be no additional costs to the State Tax Department due to passage of this bill. However, other agencies could incur costs in determining the amounts to be paid to counties for regional jail fees.
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to provide that the state excise tax on the privilege of transferring real property tax be used to reimburse counties for regional jail fees.
    
    There are several problems with this bill because the language is vague and without significant direction. There are no provisions detailing how to determine the amount of the reimbursement to each county.