Date Requested:March 04, 2013
Time Requested:03:12 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2300 Introduced HB2801
CBD Subject: EMERGENCY RESPONSE ACT OF 2013"
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

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

     The stated purpose of this bill is to create the “West Virginia Infrastructure Emergency Response Act of 2013". It provides exemption from requirements for business and employee taxes or other criteria for purposes of certain state and local taxes, licensing and regulatory requirements on a temporary basis during for out-of-state employees and businesses, including affiliates of in-state businesses, that temporarily provide resources and personnel in the state during a state of emergency declared by either the Governor, the Legislature or the President of the United States.
    
     As written, this bill may result in a non-quantifiable revenue loss to the General Revenue Fund. It relates to out-of-state emergency responders aiding in disaster relief in West Virginia during a declared “State of Emergency”. Currently, West Virginia has reciprocal agreements with our surrounding states regarding out-of-state residents working in West Virginia. If an individual works in West Virginia and is a resident of Kentucky, Maryland, Ohio, Pennsylvania, or Virginia that individual does not have to pay West Virginia income taxes on their wages. This bill would affect emergency workers and businesses in the State temporarily to aid in disaster relief. It is standard practice for power companies to loan workers to each other in emergencies. These companies have mutual-aid contracts that require the host utility to lodge, feed and pay the guest workers.
    
     Additional administrative costs for the State Tax Department from the passage of this bill could be significant as written due to the potential for future legal issues.
    

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):
     The stated purpose of this bill is to create the “West Virginia Infrastructure Emergency Response Act of 2013". It provides exemption from requirements for business and employee taxes or other criteria for purposes of certain state and local taxes, licensing and regulatory requirements on a temporary basis during for out-of-state employees and businesses, including affiliates of in-state businesses, that temporarily provide resources and personnel in the state during a state of emergency declared by either the Governor, the Legislature or the President of the United States.
    
     As written, this bill may result in a non-quantifiable revenue loss to the General Revenue Fund. It relates to out-of-state emergency responders aiding in disaster relief in West Virginia during a declared “State of Emergency”. Currently, West Virginia has reciprocal agreements with our surrounding states regarding out-of-state residents working in West Virginia. If an individual works in West Virginia and is a resident of Kentucky, Maryland, Ohio, Pennsylvania, or Virginia that individual does not have to pay West Virginia income taxes on their wages. This bill would affect emergency workers and businesses in the State temporarily to aid in disaster relief. It is standard practice for power companies to loan workers to each other in emergencies. These companies have mutual-aid contracts that require the host utility to lodge, feed and pay the guest workers.
    
     Additional administrative costs for the State Tax Department from the passage of this bill could be significant as written due to the potential for future legal issues.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to create the “West Virginia Infrastructure Emergency Response Act of 2013". It provides exemption from requirements for business and employee taxes or other criteria for purposes of certain state and local taxes, licensing and regulatory requirements on a temporary basis during for out-of-state employees and businesses, including affiliates of in-state businesses, that temporarily provide resources and personnel in the state during a state of emergency declared by either the Governor, the Legislature or the President of the United States.
    
     The proposed bill conflicts with the U.S. Constitution and has unintended adverse effects on other taxes. The bill excludes certain businesses and persons from being present in the State and therefore not subject to licensing or registration requirements on the state and local level.