Date Requested:February 09, 2012
Time Requested:11:13 AM
Agency: Forestry, Division of
CBD Number: Version: Bill Number: Resolution Number:
2012R1550 Introduced SB207
CBD Subject: TIMBER SEVERANCE AND BUSINESS PRIVILEGE TAX
FUND(S)
Division of Forestry Severance Tax Operations Fund
Sources of Revenue
Special 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 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 Division of Forestry associated with this bill would be minimal.
    

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 -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 Division of Forestry associated with this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Darlene Parsons
Email Address:
Darlene.D.Parsons@wv.gov