|Date Requested:March 13, 2013
Time Requested:02:41 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
The purpose of Senate Bill 483 (SB483) is to increase the fire and casualty insurance surcharge from 0.55% to 1.00%, which amounts are collected by the West Virginia Insurance Commission and remitted to the Fire Protection Fund and then distributed to volunteer and part-volunteer fire departments by the Treasurer's Office. SB483 does not impact the state General Revenue Fund, it only impacts special revenues of the state which are remitted to volunteer and part-volunteer fire departments.
The increase is 1.82 times current collections. The 2012 amount collected by the West Virginia Insurance Commission was $12.5 million. Using the factor of 1.82 times as to the 2012 collections of $12.5 million, collections for 2012 at 1% would be $22.8 million.
Amounts distributable are withheld upon direction of the Legislative Auditor and the Fire Marshall. When the Legislative Auditor and Fire Marshall have been satisfied that all reports and audits are complete, the Treasurer's Office is then authorized to distribute the amounts previously withheld. This results in previously withheld amounts being distributed in subsequent periods, which means that distributions in any given quarter or year do not exactly correspond to amounts collected by the West Virginia Insurance Commission. There are no administrative fees deducted by the State Treasurer, which means that ultimately all moneys collected are distributed.
Revenue growth in future fiscal years is difficult to determine. Based upon collections for calendar years 2008 through 2012, revenues are increasing at most around 1% per year.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
Please see Fiscal Note Summary above.