Date Requested:January 23, 2012
Time Requested:04:43 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1551 Introduced HB4088
CBD Subject: REPEALING TELECOMMUNICATIONS TAX 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 repeal the West Virginia Telecommunications Act.
    
    As written, the bill would repeal the 4% gross receipts tax on any business selling or furnishing telegraph, telephone, or other communications services that are subject to regulation by the West Virginia Public Service Commission. The tax is imposed on services determined to not be subject to competition. According to our interpretation, passage of this bill would result in no more than a minimal loss to the General Revenue Fund. The official FY2013 revenue estimate includes $0 in Telecommunications Tax collections.
    
    There would be no administrative costs associated with 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 0 0
3. Explanation of above estimates (including long-range effect):
    As written, the bill would repeal the 4% gross receipts tax on any business selling or furnishing telegraph, telephone, or other communications services that are subject to regulation by the West Virginia Public Service Commission. The tax is imposed on services determined to not be subject to competition. According to our interpretation, passage of this bill would result in no more than a minimal loss to the General Revenue Fund. The official FY2013 revenue estimate includes $0 in Telecommunications Tax collections. FY2011 collections totaled just $22,520, and year-to-date FY2012 collections total just $50,118 as of mid-January.
    
    There would be no administrative costs associated with passage of this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov