Date Requested:February 09, 2011
Time Requested:01:52 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2470 Introduced HB3086
CBD Subject: GOOD JOBS INTERNET REPORTING ACT
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 create the Good Jobs Internet Reporting Act. The bill authorizes state departments and agencies to provide developmental assistance to qualified recipients. The bill defines developmental assistance to include, tax credits, tax exemptions, grants and loans and sets forth the requirements for applications for developmental assistance. The bill sets forth the requirements of developmental assistance agreements and the requirements for annual progress reports by recipients of developmental assistance. The bill also requires all state departments and agencies to annually submit copies of all developmental assistance agreements to the Department of Revenue. The bill requires the Department of Revenue to submit an annual unified economic development budget to the Legislature and sets forth what that budget must contain. The bill also defines additional terms.
    
    As written, this bill would provide for additional reporting on certain tax credits, tax exemptions, grants and loans for development assistance. The bill defines “development assistance” to include: tax credits and tax exemptions including tax increment financing given as an incentive to a recipient business organization pursuant to an initial certification or an initial designation made by the Department of Revenue for the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit; grants or loans given to a recipient as an incentive to a business organization; the West Virginia Economic Development Authority; and, all successor and subsequent programs and tax credits designed to promote large business relocations and expansions. The bill also requires the preparation of a Unified Economic Development Budget and the standardization of applications for State development assistance. The bill also contains recapture provisions,
    
    According to our interpretation that this bill provides for changes in reporting development assistance and since the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit have existing recapture provisions, this bill will not directly impact revenue.
    
    The State Tax Department will incur additional administrative costs associated with passage of this bill of roughly $80,000 in the year following passage of the bill and roughly $50,000 per year thereafter. The Department of Commerce and some other State agencies may incur additional administrative costs due to passage of 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 80,000 50,000
Personal Services 0 50,000 50,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 10,000 0
Other 0 20,000 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    As written, this bill would provide for additional reporting on certain tax credits, tax exemptions, grants and loans for development assistance. The bill defines “development assistance” to include: tax credits and tax exemptions including tax increment financing given as an incentive to a recipient business organization pursuant to an initial certification or an initial designation made by the Department of Revenue for the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit; grants or loans given to a recipient as an incentive to a business organization; the West Virginia Economic Development Authority; and, all successor and subsequent programs and tax credits designed to promote large business relocations and expansions. The bill also requires the preparation of a Unified Economic Development Budget and the standardization of applications for State development assistance. The bill also contains recapture provisions.
    
    According to our interpretation that this bill provides for changes in reporting development assistance and since the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit have existing recapture provisions, this bill will not directly impact revenue.
    
     The State Tax Department will incur additional administrative costs associated with passage of this bill of roughly $80,000 in the year following passage of the bill and roughly $50,000 per year thereafter. The costs include the salary and benefits for an additional employee to properly track the cited development assistance and to provide for the revision of existing forms and computer programs. The Department of Commerce and some other State agencies may incur additional administrative costs due to passage of this bill.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to create the Good Jobs Internet Reporting Act. The bill authorizes state departments and agencies to provide developmental assistance to qualified recipients. The bill defines developmental assistance to include, tax credits, tax exemptions, grants and loans and sets forth the requirements for applications for developmental assistance. The bill sets forth the requirements of developmental assistance agreements and the requirements for annual progress reports by recipients of developmental assistance. The bill also requires all state departments and agencies to annually submit copies of all developmental assistance agreements to the Department of Revenue. The bill requires the Department of Revenue to submit an annual unified economic development budget to the Legislature and sets forth what that budget must contain. The bill also defines additional terms.
    
    Proposed WV Code §5B-2H-3 requires a Unified Economic Development Budget. However, multiple references to the Department of Revenue and department (defined as the Department of Commerce) make it unclear as to which agency is responsible for preparing the required document.