Date Requested:February 21, 2013
Time Requested:05:18 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1364 Introduced HB2154
CBD Subject: CORPORATE INCOME CREDIT
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
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 authorize a corporation net income tax credit for reducing charges for home heating fuel and propane gas provided to low-income residents. The bill defines terms. The bill determines the amount of credit that may be taken. The bill provides the Public Service Commission with the authority to set special rates. The bill determines the recovery of revenue deficiencies. The bill limits and exempts those utilities from certain municipal taxes. The bill grants the Department of Health Human services and the Public Service Commission with rule-making authority.
    
     As written, this bill would provide for a tax credit to Business and Occupation Tax filers that provide heating fuel or propane gas service to qualified low-income residential customers at special reduced rates. Similar to an existing program that provides a tax credit for reducing electric and natural gas rates for low-income customers, the credit proposed by this bill requires the Public Service Commission to certify the amount of the revenue deficiency incurred by the entity providing the special reduced rate. The State Tax Department does not have access to the data necessary to estimate the revenue impact of this proposed tax credit. Taxpayers selling home heating fuel or propane gas are generally not subject to State Business and Occupation Tax and are not currently subject to regulation by the Public Service Commission.
    
     The proposed tax credit legislation provides that a copy of the Public Service Commission certification of the revenue deficiency incurred by the taxpayer be attached to the annual return upon which the credit is claimed. However, the Public Service Commission does not generally regulate providers of home heating fuel and propane gas. Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. If the State Tax Department is required to independently verify the amount of eligible credit, additional administrative costs to the State Tax Department could be significant. Additionally, the Public Service Commission may incur additional administrative costs due to this bill.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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, this bill would provide for a tax credit to Business and Occupation Tax filers that provide heating fuel or propane gas service to qualified low-income residential customers at special reduced rates. Similar to an existing program that provides a tax credit for reducing electric and natural gas rates for low-income customers, the credit proposed by this bill requires the Public Service Commission to certify the amount of the revenue deficiency incurred by the entity providing the special reduced rate. The State Tax Department does not have access to the data necessary to estimate the revenue impact of this proposed tax credit. Taxpayers selling home heating fuel or propane gas are generally not subject to State Business and Occupation Tax and are not currently subject to regulation by the Public Service Commission.
    
     The proposed tax credit legislation provides that a copy of the Public Service Commission certification of the revenue deficiency incurred by the taxpayer be attached to the annual return upon which the credit is claimed. However, the Public Service Commission does not generally regulate providers of home heating fuel and propane gas. Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. If the State Tax Department is required to independently verify the amount of eligible credit, additional administrative costs to the State Tax Department could be significant. Additionally, the Public Service Commission may incur additional administrative costs due to this bill.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov