Date Requested:February 06, 2012
Time Requested:02:36 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1928 Introduced SB526
CBD Subject: REDISTRIBUTING EXCISE TAX
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund local governments
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The purpose of this bill is to incrementally redistribute an existing excise tax on the transfer of real property so that, over the course of five years, all moneys collected will be paid to the county where the property is situate instead of the state and to require the moneys paid to counties be exclusively dedicated to regional jails and substance abuse treatment.
    
    According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
    
     State Counties
    FY 2013 $6,800,000 $1,700,000
    FY 2014 $5,310,000 $3,540,000
    FY 2015 $3,744,000 $5,616,000
    FY 2016 $1,904,000 $7,616,000
    FY 2017 $0 $9,870,000
    
    The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $1.7 million in FY2013 to $9.9 million in FY2017. All counties are directed to use 75% of the distribution on jails and 25% to support substance abuse treatment.
    
    There would be no additional costs to the State Tax Department.

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):
    According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
    
     State Counties
    FY 2013 $6,800,000 $1,700,000
    FY 2014 $5,310,000 $3,540,000
    FY 2015 $3,744,000 $5,616,000
    FY 2016 $1,904,000 $7,616,000
    FY 2017 $0 $9,870,000
    
    The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $1.7 million in FY2013 to $9.9 million in FY2017. All counties are directed to use 75% of the distribution on jails and 25% to support substance abuse treatment.
    
    There would be no additional costs to the State Tax Department.
    


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