Date Requested:February 21, 2011
Time Requested:11:35 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2806 Introduced SB559
CBD Subject: SPECIAL RAILROAD AND INTERMODAL ENHANCEMENT FUND
FUND(S)
General Revenue Fund & Special Railroad & Intermodal Enhancement 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 remove the expiration date for provisions relating to requiring the deposit of moneys in the Special Railroad and Intermodal Enhancement Fund.
    
    As written, this bill eliminates provisions in W.Va. Code §11-24-43a relating to the expiration date of requiring the deposit of money into the “Special Railroad and Intermodal Enhancement Fund” at the end of June 30, 2016. As a result, moneys that would have remained in the General Revenue Fund after the expiration of these provisions will now be transferred to the “Special Railroad and Intermodal Enhancement Fund” indefinitely. In 2016, the transfer amount is still limited to $2,150,000. With the passage of this bill, the entire annual amount of $4,300,000 will be transferred in 2017, and beyond.
    
    There would be no additional administrative costs associated with the 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 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 stated purpose of this bill is to remove the expiration date for provisions relating to requiring the deposit of moneys in the Special Railroad and Intermodal Enhancement Fund.
    
    As written, this bill eliminates provisions in W.Va. Code §11-24-43a relating to the expiration date of requiring the deposit of money into the “Special Railroad and Intermodal Enhancement Fund” at the end of June 30, 2016. As a result, moneys that would have remained in the General Revenue Fund after the expiration of these provisions will now be transferred to the “Special Railroad and Intermodal Enhancement Fund” indefinitely. In 2016, the transfer amount is still limited to $2,150,000. With the passage of this bill, the entire annual amount of $4,300,000 will be transferred in 2017, and beyond.
    
    There would be no additional administrative costs associated with the 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 remove the expiration date for provisions relating to requiring the deposit of moneys in the Special Railroad and Intermodal Enhancement Fund.
    
    West Virginia Code §11-24-43a(c) provided that the requirement to deposit moneys into the Special Railroad and Intermodal Enhancement Fund end as of June 30, 2016. This bill deletes subsection (c). Therefore, §43a no longer has a sunset provision.
    
    West Virginia Code §11-24-43a requires an annual amount of up to $4,300,000 from Corporation Net Income Tax to be deposited into the Special Railroad and Intermodal Enhancement Fund and used as set forth in §11-24-43a(a) and provided in W.V. Code §17-16B-7a. Subsection (b) of W.V. Code §11-24-43a provides for quarterly payments of at least $1,075,000. If collections are less than the amounts required, then the difference shall be paid from amounts available from collections in succeeding quarters until paid in full.
    
    The bill is silent as to the restriction in subsection (b) that the total amount to be deposited into the Fund for the year 2016 is not to exceed $2,150,000. As a result, there is an internal conflict since the deposits will not end on June 30, 2016 and the yearly requirement is $4,300,000.