Date Requested:March 12, 2013
Time Requested:01:39 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2537 Introduced HB2913
CBD Subject: CORRECTING ERRONEOUS TAX
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 specify procedures for adjusting payments and transferring moneys to correct for an erroneous distribution, transfer, allocation, overpayment or underpayment of moneys dedicated, distributed or directed to a state or local governmental subdivision or to a fund, entity, agency or instrumentality, under the tax code or the lottery code.
    
     As written, the passage of this bill would have no revenue consequences to the General Revenue Fund. This bill merely allows the Department of Revenue to distribute moneys to various local governmental entities in a more accurate, timely manner. The provisions of this bill would allow the Department of Revenue to make adjustments to future distributions in order to recoup monies from local entities who received too much in distributions and to transfer recouped funds to local entities who received too little in distributions due to a discovered error or a revision to originally reported Taxpayer information. The provisions of the bill would permit offsetting all types of local distributions only if necessary to accomplish the objective. It also provides for a statute of limitation for erroneous discoveries.
    
     There would be no additional administrative costs to the State Tax Department from the 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 0 0
3. Explanation of above estimates (including long-range effect):
     The stated purpose of this bill is to specify procedures for adjusting payments and transferring moneys to correct for an erroneous distribution, transfer, allocation, overpayment or underpayment of moneys dedicated, distributed or directed to a state or local governmental subdivision or to a fund, entity, agency or instrumentality, under the tax code or the lottery code.
    
     As written, the passage of this bill would have no revenue consequences to the General Revenue Fund. This bill merely allows the Department of Revenue to distribute moneys to various local governmental entities in a more accurate, timely manner. The provisions of this bill would allow the Department of Revenue to make adjustments to future distributions in order to recoup monies from local entities who received too much in distributions and to transfer recouped funds to local entities who received too little in distributions due to a discovered error or a revision to originally reported Taxpayer information. The provisions of the bill would permit offsetting all types of local distributions only if necessary to accomplish the objective. It also provides for a statute of limitation for erroneous discoveries.
    
     Passage of this bill would allow an adjustment to distributions in a hypothetical case where County A received $1 million attributable to coal production reported by a Taxpayer as being from County A but a subsequent audit determined the coal was actually mined in County B. The Department of Revenue would then adjust various future distributions to County A to recoup the $1 million so that County B would receive the $1 million which the county is correctly entitled.
    
     There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    


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