| Date Requested:January 17, 2012 Time Requested:02:14 PM |
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| FUND(S) Division of Forestry Severance Tax Operations Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| Special Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to extend the moratorium on the regular severance tax on the privilege of severing timber until such time as the additional Workers Compensation Debt Reduction Act tax on the privilege of severing timber expires.
According to our interpretation, passage of this bill would discontinue the Severance Tax on timber levied via W. Va. Code §11-13A-3b until the sunset date of the Workers Compensation Debt Reduction Act. The bill would result in reductions in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million per year from FY2013 until the sunset date of the Workers Compensation Debt Reduction Act. Additional administrative costs to the State Tax Department associated with this bill would be minimal. |
| 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 | -1,000,000 | -1,000,000 |
|
3. Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would discontinue the Severance Tax on timber levied via W. Va. Code §11-13A-3b until the sunset date of the Workers Compensation Debt Reduction Act. The bill would result in reductions in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million per year from FY2013 until the sunset date of the Workers Compensation Debt Reduction Act.
Additional administrative costs to the State Tax Department associated with this bill would be minimal. |