Date Requested:March 05, 2013
Time Requested:01:55 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2531 Introduced SB445
CBD Subject: TAX LIABILITIES OF PRIZE WINNER
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 stated purpose of this bill is to enhance state revenues by allowing the State Tax Commissioner to divert and use lottery prizes to pay unpaid tax liabilities of lottery prize winners.
    
     As written, this bill would authorize the State Tax Commissioner and the Director of the Lottery Commission to enter into an agreement such that the State Tax Department may disclose to the Lottery Commission information on individuals who are delinquent on any taxes administered under Chapter 11, Article 10 of the West Virginia Code. Subsequently, lottery prizes of individuals with an identified tax delinquency would be diverted to offset or reduce the delinquency. According to our interpretation, passage of this bill would result in additional deposits to the General Revenue Fund of roughly $250,000 per year beginning in FY2014.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. The Lottery Commission may incur some additional administrative costs attributable to passage of 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 0 250,000 250,000
3. Explanation of above estimates (including long-range effect):
     As written, this bill would authorize the State Tax Commissioner and the Director of the Lottery Commission to enter into an agreement such that the State Tax Department may disclose to the Lottery Commission information on individuals who are delinquent on any taxes administered under Chapter 11, Article 10 of the West Virginia Code. Subsequently, lottery prizes of individuals with an identified tax delinquency would be diverted to offset or reduce the delinquency. According to our interpretation, passage of this bill would result in additional deposits to the General Revenue Fund of roughly $250,000 per year beginning in FY2014.
    
     The prizes to which the offset for delinquent taxes may apply are those awarded directly by the Lottery Commission and which are generally in an amount of $600 or more. The provisions of this bill do not apply to lottery prizes redeemed at lottery retailers.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. The Lottery Commission may incur some additional administrative costs attributable to passage of this bill.
    


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