Date Requested:January 12, 2012
Time Requested:02:15 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1305 Introduced SB17
CBD Subject: COMMUTER RAIL ACCESS 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 allow railroads in West Virginia which charge track access fees for daily railroad commuter service to receive a tax credit to the railroad against the corporate net income tax equal to access fees lost in lieu of payment.
    
    As written, this bill would require railroads to submit invoices for track access fees for any daily commuter trains in West Virginia to the West Virginia State Rail Authority. Upon verification by the West Virginia State Rail Authority, the railroad would be given a tax credit in an amount equal to the access fees that would have been charged. The railroad would receive the tax credit in lieu of invoicing the commuter rail line. The credit would be used as an offset to the Corporation Net Income Tax. Based upon preliminary information provided by the West Virginia State Rail Authority, the annual track access fees are nearly $700,000 per year. Since the proposed credit would be in an amount equal to the track access fees, the application of the proposed credit against the Corporation Net Income Tax would result in an annual reduction in the General Revenue Fund of nearly $700,000 per year.
    
    If all tax returns with the proposed credit are accepted as filed, additional administrative costs to the State Tax Department associated with this bill would be minimal. However, the West Virginia State Rail Authority may incur additional administrative costs due to passage of this bill.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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 -700,000 -700,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would require railroads to submit invoices for track access fees for any daily commuter trains in West Virginia to the West Virginia State Rail Authority. Upon verification by the West Virginia State Rail Authority, the railroad would be given a tax credit in an amount equal to the access fees that would have been charged. The railroad would receive the tax credit in lieu of invoicing the commuter rail line. The credit would be used as an offset to the Corporation Net Income Tax. Based upon preliminary information provided by the West Virginia State Rail Authority, the annual track access fees are nearly $700,000 per year. Since the proposed credit would be in an amount equal to the track access fees, the application of the proposed credit against the Corporation Net Income Tax would result in an annual reduction in the General Revenue Fund of nearly $700,000 per year.
    
    If all tax returns with the proposed credit are accepted as filed, additional administrative costs to the State Tax Department associated with this bill would be minimal. However, the West Virginia State Rail Authority 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 allow railroads in West Virginia which charge track access fees for daily railroad commuter service to receive a tax credit to the railroad against the corporate net income tax equal to access fees lost in lieu of payment.
    
    As written in proposed W. Va. Code §29-18A-2, the bill states “Any railroad subject to the provisions of article eighteen-a of this chapter must submit its invoice for track access fees . . .” However, there does not appear to be any definition of which railroads are subject to article eighteen-A.