Date Requested:February 21, 2011
Time Requested:02:26 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2835 Introduced SB590
CBD Subject: TOURISM EXPANSION PROJECTS
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 remove the cap on the amount of annual credit that may be awarded for destination tourism expansion projects approved after June 30, 2011. It provides a rule for determining amount of allowable credit when approved project is a multiyear, multiphase project; and provides a presumption that consumers sales and service tax is collected on calendar year basis.
    
    As written, this bill proposes changes to the Tourism Development Act Credit including; eliminating the current $1.5 million cap on Tourism Development Expansion Project Tax Credits that may be approved in a calendar year; providing for the available credit to be calculated for each phase of a project that will be completed over a period or 48 months or less, and establishing that the baseline sales tax value will be the initial baseline sales tax for the first phase of the project.
    
    The State Tax Department does not possess information on the number of tourism development projects that may qualify under the revised provisions. Thus, we are unable to accurately estimate the potential revenue impact of the proposal.
    
    The State Tax Department will incur additional administrative costs attributable to passage of this bill. Unless there is a significant increase in tourism development projects, the additional costs will be minimal. The Development Office may also incur additional administrative costs.
    
    

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 proposes changes to the Tourism Development Act Credit including; eliminating the current $1.5 million cap on Tourism Development Expansion Project Tax Credits that may be approved in a calendar year; providing for the available credit to be calculated for each phase of a project that will be completed over a period or 48 months or less, and establishing that the baseline sales tax value will be the initial baseline sales tax for the first phase of the project.
    
    The State Tax Department does not possess information on the number of tourism development projects that may qualify under the revised provisions. Thus, we are unable to accurately estimate the potential revenue impact of the proposal.
    
    The State Tax Department will incur additional administrative costs attributable to passage of this bill. Unless there is a significant increase in tourism development projects, the additional costs will be minimal. The Development Office may also incur additional administrative costs.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to remove the cap on the amount of annual credit that may be awarded for destination tourism expansion projects approved after June 30, 2011. It provides a rule for determining amount of allowable credit when approved project is a multiyear, multiphase project; and provides a presumption that consumers sales and service tax is collected on calendar year basis.
    
    Although the bill proposes a new section to provide a credit for multiphase, multiyear projects, the bill does not amend the existing statute regarding forfeiture and recapture of credit (i.e., WV Code ยง5B-2E-8) to apply to the section added by the bill.