Date Requested:March 18, 2013
Time Requested:02:37 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2156 Comm. Sub. SB195
CBD Subject: HOSPITAL PROVIDER TAX EXTENSION
FUND(S)
Eligible Acute Care Provider Enhancement Account
Sources of Revenue
Other Fund Eligible Acute Care Provi
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

     As written, this bill extends the tax on acute care hospitals to June 30, 2014, lowers the tax rate from 0.88 percent to 0.45 percent, and specifies the disposition of funds.
    
     According to our interpretation and assuming the change in the tax rate is effective July 1, 2013, passage of this bill would provide revenue for the Eligible Acute Care Provider Enhancement Account of roughly $11.3 million in FY2014 and roughly $3.8 million in FY2015.
    
     There would be no additional administrative costs to the State Tax Department associated with passage of this bill. The Department of Health and Human Resources Bureau of Medical Services may incur additional administrative costs associated with 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):
     As written, this bill extends the tax on acute care hospitals to June 30, 2014, lowers the tax rate from 0.88 percent to 0.45 percent, and specifies the disposition of funds.
    
     According to our interpretation and assuming the change in the tax rate is effective July 1, 2013, passage of this bill would provide revenue for the Eligible Acute Care Provider Enhancement Account of roughly $11.3 million in FY2014 and roughly $3.8 million in FY2015.
    
     There would be no additional administrative costs to the State Tax Department associated with passage of this bill. The Department of Health and Human Resources Bureau of Medical Services may incur additional administrative costs associated with passage of this bill.


Memorandum
Person submitting Fiscal Note:
Roger D. Cox
Email Address:
Roger.D.Cox@wv.gov
     As written, this bill extends the tax on acute care hospitals to June 30, 2014, lowers the tax rate from 0.88 percent to 0.45 percent, and specifies the disposition of funds.
    
     While the bill proposes to lowers the tax rate from 0.88 percent to 0.45 percent, the bill does not specify an effective date for the change in the tax rate.