Date Requested:February 16, 2012
Time Requested:03:28 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R2252 Introduced SB620
CBD Subject: SPECIAL DISTRICT TAX
FUND(S)
General Revenue Fund, Economic Opportunity Development District Fund
Sources of Revenue
General Fund,Other Fund Economic Opportunity Deve
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 permit the Harrison county commission to levy a special district excise tax for the benefit of the “Charles Pointe Economic Opportunity Development District” which comprises four hundred thirty-seven acres of land.
    
     As written in the bill and in the stated purpose above, passage of this bill would authorize the Harrison County Commission to levy a special district excise tax for the benefit of the Charles Pointe Economic Opportunity Development District. According to our interpretation, the Consumers Sales and Service Tax and Use Tax currently collected within the Charles Pointe Economic Opportunity Development District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from business within the District up to an amount equivalent to the base year tax revenue. Incremental sales tax collections, above the base year amount, from sales and service activity within the Charles Pointe Economic Opportunity Development District would be available for the development project. There could be some loss of State General Revenue over time to the extent that any new activity within the District displaces existing retail activities in the market region located outside of the District. However, such an impact can not be readily quantified.
    
    
     Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the State Treasurer’s Office and the Harrison County Commission. However, the additional administrative costs for the State Tax Department and the State Treasurer’s Office would likely be minimal since the creation of the Charles Pointe Economic Opportunity Development District would likely be an addition to existing processes rather than requiring the development of forms, procedures, and processes for an entirely new program. The State Tax Department administrative costs would likely be offset by the one percent retention of Special District Excise Tax revenue authorized by W. Va. Code §11-10-11a(e). The Harrison County Commission would likely incur some minimal additional administrative costs to maintain and share a list of Taxpayers within the Charles Pointe Economic Opportunity Development District required to collect and pay the Special District Excise Tax.
    

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 in the bill and in the stated purpose above, passage of this bill would authorize the Harrison County Commission to levy a special district excise tax for the benefit of the Charles Pointe Economic Opportunity Development District. According to our interpretation, the Consumers Sales and Service Tax and Use Tax currently collected within the Charles Pointe Economic Opportunity Development District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from business within the District up to an amount equivalent to the base year tax revenue. Incremental sales tax collections, above the base year amount, from sales and service activity within the Charles Pointe Economic Opportunity Development District would be available for the development project. There could be some loss of State General Revenue over time to the extent that any new activity within the District displaces existing retail activities in the market region located outside of the District. However, such an impact can not be readily quantified.
    
     Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the State Treasurer’s Office and the Harrison County Commission. However, the additional administrative costs for the State Tax Department and the State Treasurer’s Office would likely be minimal since the creation of the Charles Pointe Economic Opportunity Development District would likely be an addition to existing processes rather than requiring the development of forms, procedures, and processes for an entirely new program. The State Tax Department administrative costs would likely be offset by the one percent retention of Special District Excise Tax revenue authorized by W. Va. Code §11-10-11a(e). The Harrison County Commission would likely incur some minimal additional administrative costs to maintain and share a list of Taxpayers within the Charles Pointe Economic Opportunity Development District required to collect and pay the Special District Excise Tax.
    
    
    
    
    


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