FUND(S):

0155,1612,1617

Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    This bill proposes the reduction of fees assessed to non-profit and for-profit organizations filing annual reports after the required deadlines.
    
    There will be no increased costs to the state. The principle of conservatism suggests that these fees are not reliable, as it would be hopeful that all business would pay the required fee by the deadline. However, based on historical data, it is estimated that there could be a $375,000 reduction in the fees collected by the state.



Fiscal Note Detail


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 600,000 -375,000 225,000


Explanation of above estimates (including long-range effect):


    This bill has not changes to costs for the state.
    
    Based of historical data, approximately 3,000 non-profit organizations file late. Currently, the late fee is $100, resulting in collections of $300,000.
    
    By reducing the non-profit late fee from $100 to $25, potential collections will be reduced by $225,000 to $75,000.
    
    Based of historical data, approximately 3,000 for-profit organizations file late. Currently, the late fee is $100, resulting in collections of $300,000.
    
    By reducing the non-profit late fee from $100 to $50, potential collections will be reduced by $150,000 to $150,000.
    
    Overall, the potential reduction in collections could total $375,000.



Memorandum


    We would once again like to stress that the principle of conservatism suggests that these fees are not reliable, as it would be hopeful that all business would pay the required fee by the deadline.



    Person submitting Fiscal Note: Brian Messer, CPA
    Email Address: bmesser@wvsos.com