Date Requested:February 06, 2012
Time Requested:02:35 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1822 Introduced HB4431
CBD Subject: MUNICIPAL HOME RULE PILOT PROGRAM
FUND(S)
Local government
Sources of Revenue
Other Fund Local government
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 end the Municipal Home Rule Pilot Program on the date of the passage of this amendment made during the 2012 regular session of the Legislature. The bill negates the future effect of all ordinances, acts, resolutions, rules and laws enacted between July 1, 2007 and the date of passage of this amendment that are contrary to the Constitution of the United States, the Constitution of West Virginia, federal law or chapters sixty-a, sixty-one and sixty-two of this code. The bill also requires all information regarding the Municipal Home Rule Pilot Program be submitted to the Legislature by July 1, 2012.
    
     To date, the Municipal Home Rule Board has approved pilot programs in the cities of Bridgeport, Charleston, Huntington, and Wheeling. The pilot programs authorized the approved municipalities to enact any ordinances, acts, resolutions, rules, and regulations not contrary to the Constitution of the United States, the Constitution of West Virginia, federal law, or Chapters 60A, 61, and 62 of the West Virginia Code. Some of the approved programs include taxes and fees, including some that went into effect January 1, 2012. The State Tax Department does not currently have sufficient information to determine the potential impact on local revenue attributable to the proposed early termination of the program. The termination of the program should have no impact on State Revenue.
    
     Additional administrative costs to the State Tax Department due to passage of this bill would be roughly $70,000 due to the need to notify Consumers Sales and Service Tax accounts of the early termination of a local sales tax approved through the Home rule program. The four pilot program cities may incur additional administrative costs attributable 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 70,000 0 0
Personal Services 0 0 0
Current Expenses 50,000 0 0
Repairs and Alterations 0 0 0
Assets 20,000 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
     Passage of this bill would terminate the approved Home Rule pilot programs in the cities of Bridgeport, Charleston, Huntington, and Wheeling. The pilot programs authorized the approved municipalities to enact any ordinances, acts, resolutions, rules, and regulations not contrary to the Constitution of the United States, the Constitution of West Virginia, federal law, or Chapters 60A, 61, and 62 of the West Virginia Code. Some of the approved programs include taxes and fees, including some that went into effect January 1, 2012. The State Tax Department does not currently have sufficient information to determine the potential impact on local revenue attributable to the proposed early termination of the program. The termination of the program should have no impact on State Revenue.
    
     Additional administrative costs to the State Tax Department due to passage of this bill would be roughly $70,000 due to the need to notify Consumers Sales and Service Tax accounts of the early termination of a local sales tax approved through the Home rule program. The additional administrative costs would be for the printing and mailing of notices concerning the end of a local sales tax and for changes to computer programs. The four pilot program cities may incur additional administrative costs attributable 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 end the Municipal Home Rule Pilot Program on the date of the passage of this amendment made during the 2012 regular session of the Legislature. The bill negates the future effect of all ordinances, acts, resolutions, rules and laws enacted between July 1, 2007 and the date of passage of this amendment that are contrary to the Constitution of the United States, the Constitution of West Virginia, federal law or chapters sixty-a, sixty-one and sixty-two of this code. The bill also requires all information regarding the Municipal Home Rule Pilot Program be submitted to the Legislature by July 1, 2012.
    
     As indicated in the stated purpose above, the “bill negates the future effect of all ordinances, acts, resolutions, rules and laws enacted between July 1, 2007 and the date of passage of this amendment that are contrary to the Constitution of the United States, the Constitution of West Virginia, federal law or chapters sixty-a, sixty-one and sixty-two of this code.” However, the impact of passage of this bill on enacted ordinances, acts, resolutions, rules and laws that are not contrary to the listed documents is unclear.
    
     Additionally, the bill would require all information regarding the review of the Home Rule pilot program to be submitted by July 1, 2012. Absent an internal effective date, the bill, if passed, would become effective 90 days after passage. This may leave very little time between the termination of the program and the required due date of the review.
    
     As written, the bill provides for the termination of the Municipal Home Rule Pilot Program on the date of the passage of the bill. This would seem to abruptly end a local sales tax that was approved through the program. West Virginia is a member of the Streamlined Sales Tax Project and, as such, changes in the sales tax generally must be made at the beginning at the beginning of a calendar quarter and require advance notice. The abrupt end to the local sales tax may put West Virginia out of compliance with the Streamlined Sales Tax Project.