Date Requested:February 09, 2011
Time Requested:11:47 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2171 Introduced HB2762
CBD Subject: CO. ECONOMIC OPPORTUNITY DEVLOPMENT DISTRICT ACT
FUND(S)
General Revenue Fund, Economic Opportunity Development District Fund
Sources of Revenue
General Fund,Special 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 revise the County Economic Opportunity Development District Act. The bill defines remediation and includes remediation of landfills, former coal mining sites, solid waste facilities or hazardous waste sites as permissible development expenditures for approved projects. The bill changes the standard by which the maximum amounts of reserves that may be established in the financing of a project are measured. The bill provides that the development office cannot approve a project involving remediation unless all development expenditures proposed within a certain timeframe result in more than $50 million in capital investment in the district. The bill also changes the term ordinance to order and corrects other language by changing municipality to county. The bill provides that the development office may not approve a project involving remediation unless the county commission submits clear and convincing information that the proposed remediation expenditures to be financed with bonds or notes do not constitute more than twenty-five percent of a project’s total development expenditures.
    
    The State Tax Department does not possess the necessary information to determine how many new Districts would be created upon passage of this bill. However, since no project may be approved unless the amount of all proposed development expenditures must result in capital investment of more than $50 million, the number of qualifying projects may be small. The Consumers Sales and Service Tax and Use Tax currently collected within a District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from base year activity. Remaining incremental sales tax collections would be available for the development projects. Therefore, any potential revenue impact on the State General Revenue Fund should be minimal.
    
    Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the Development Office, and the State Treasurer’s Office. However, absent information on the number and size of any new Economic Opportunity Development Districts that would be created, the additional administrative costs cannot be accurately determined.
    

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):
    The State Tax Department does not possess the necessary information to determine how many new Districts would be created upon passage of this bill. However, since no project may be approved unless the amount of all proposed development expenditures must result in capital investment of more than $50 million, the number of qualifying projects may be small. The Consumers Sales and Service Tax and Use Tax currently collected within a District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from base year activity. Remaining incremental sales tax collections would be available for the development projects. Therefore, any potential revenue impact on the State General Revenue Fund should be minimal.
    
    Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the Development Office, and the State Treasurer’s Office. However, absent information on the number and size of any new Economic Opportunity Development Districts that would be created, the additional administrative costs cannot be accurately determined.


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