Date Requested:March 20, 2013
Time Requested:10:16 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2371 Introduced HB2718
CBD Subject: KEYSER-MCCOOL BRIDGE FUND
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund,Other Fund Keyser-McCool Bridge Fund
Legislation creates:
A New Fund

Fiscal Note Summary

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

     The stated purpose of this bill is to create the Keyser-McCool Bridge Fund; and to provide further for the construction of the Keyser-McCool Bridge; and the termination of the fund.
    
     As written, this bill designates “One hundered percent of the gross income tax and business and occupational tax revenue received by the state from the operation of a Industrial Wind Farm of between twenty and twenty-five turbines with a nameplate generating capacity between 45 and 65 meagawatts ...” to be placed in the newly created Keyser-McCool Bridge Fund. According to our interpretation and based upon the given information and existing law, passage of the bill would provide roughly $1.2 million to $2.2 million per year to the Keyser-McCool Bridge Fund. Since the passage of the bill would divert to the Keyser-McCool Bridge Fund revenue currently deposited into the General Revenue Fund, the General Revenue Fund would decline by roughly $1.2 million to $2.2 million per year.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $30,000 in FY2013.
    

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 30,000 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 30,000 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
     As written, this bill designates “One hundered percent of the gross income tax and business and occupational tax revenue received by the state from the operation of a Industrial Wind Farm of between twenty and twenty-five turbines with a nameplate generating capacity between 45 and 65 meagawatts ...” to be placed in the newly created Keyser-McCool Bridge Fund. According to our interpretation and based upon the given information and existing law, passage of the bill would provide roughly $1.2 million to $2.2 million per year to the Keyser-McCool Bridge Fund. Since the passage of the bill would divert to the Keyser-McCool Bridge Fund revenue currently deposited into the General Revenue Fund, the General Revenue Fund would decline by roughly $1.2 million to $2.2 million per year.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $30,000 in FY2013. The additional costs would be for redesign of tax forms and programming changes to separately track the tax revenue for the specified Industrial Wind Farm.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to create the Keyser-McCool Bridge Fund; and to provide further for the construction of the Keyser-McCool Bridge; and the termination of the fund.
    
     As written, this bill refers to a “business and occupational tax” and a “gross income tax.” While it may be generally assumed that the first reference is to Business and Occupation Tax levied via W. Va. Code §11-13-1 et seq., it is not clear to which tax or taxes that “gross income tax” refers. Absent the explicit references to a specific tax, the bill could be subject to unintended interpretation.