Date Requested:March 15, 2013
Time Requested:11:40 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2751 Introduced HB2950
CBD Subject: TAX INCENTIVE TO CABLE & SATELLITE PROVIDERS
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 provide cable operators and satellite television providers a tax credit for offering consumers access only to those channels they select.
    
     As written, this bill would provide a tax credit to all eligible Taxpayers in the amount of twenty-five percent of the “corporate net income” derived from consumers subscribing only to those channels which the consumer selects. The State Tax Department does not have access to the data necessary to accurately estimate the potential revenue impact of the proposed credit.
    
     Additional administrative costs could be substantial for the licensing authority that is tasked with the role of determining income subject to tax credit offset. In addition, compliance costs for affected Taxpayers may be significant.

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 a tax credit to all eligible Taxpayers in the amount of twenty-five percent of the “corporate net income” derived from consumers subscribing only to those channels which the consumer selects. The State Tax Department does not have access to the data necessary to accurately estimate the potential revenue impact of the proposed credit.
    
     Additional administrative costs could be substantial for the licensing authority that is tasked with the role of determining income subject to tax credit offset. In addition, compliance costs for affected Taxpayers may be significant.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to provide cable operators and satellite television providers a tax credit for offering consumers access only to those channels they select.
    
     The title and/or bill use terms such as “satellite television providers,” “approval by the appropriate licensing authority,” “corporate net income,” and “reasonable rate” without providing adequate descriptions.