Date Requested:March 25, 2013
Time Requested:09:22 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2218 Introduced HB2578
CBD Subject: GOOD JOBS INTERNET REPORTING ACT
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 create the Good Jobs Internet Reporting Act. The bill requires the reporting of job creation and retention data, tax credit data and property tax redemptions, abatements and exemptions to the Department of Revenue. It requires the Department of Revenue to report the data to the Legislature and to publish the reports on the Internet.
    
     As written, this bill would provide for additional reporting on certain tax credits, grants and loans for development assistance. The bill defines “development assistance” to mean “any tax credit administered by the Tax Department that has a job creation or retention qualification or job reporting requirement, or any direct economic development loan or grant administered by the West Virginia Economic Development Authority, the Development Office or the West Virginia Infrastructure and Jobs Development Council.” The bill requires the Department of Revenue to issue tracking numbers for each application for development assistance submitted to a granting body and requires the State Tax Department to obtain a tracking number from the Department of Revenue for each tax return for which a development assistance tax credit is claimed before the tax credit is granted or administered. The bill specifies the information that each granting body is to provide to the Department of Revenue. The bill also requires each Property Tax levying body to report to the Department of Revenue specific information on each assessment valuation determination of real or personal property for an amount less than the fair market value that it made for the purpose of development assistance during the previous tax year. Additionally, the bill requires the Department of Revenue to annually compile and publish written and electronic reports on the information it receives from the reports required by the bill.
    
     According to our interpretation, this bill provides for changes in reporting development assistance but will not directly impact revenue.
    
     The Department of Revenue and the State Tax Department will incur additional administrative costs associated with passage of this bill of roughly $200,000 in the year following passage of the bill and roughly $150,000 per year thereafter. The Department of Commerce and some other State agencies may incur additional administrative costs due to passage of this bill. Local Property Tax levying bodies will incur additional administrative costs attributable to passage of this bill. Due to the depth of information required to be reported, Taxpayers receiving development assistance will incur additional compliance costs attributable to 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 0 200,000 150,000
Personal Services 0 150,000 150,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 30,000 0
Other 0 20,000 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
     As written, this bill would provide for additional reporting on certain tax credits, grants and loans for development assistance. The bill defines “development assistance” to mean “any tax credit administered by the Tax Department that has a job creation or retention qualification or job reporting requirement, or any direct economic development loan or grant administered by the West Virginia Economic Development Authority, the Development Office or the West Virginia Infrastructure and Jobs Development Council.” The bill requires the Department of Revenue to issue tracking numbers for each application for development assistance submitted to a granting body and requires the State Tax Department to obtain a tracking number from the Department of Revenue for each tax return for which a development assistance tax credit is claimed before the tax credit is granted or administered. The bill specifies the information that each granting body is to provide to the Department of Revenue. The bill also requires each Property Tax levying body to report to the Department of Revenue specific information on each assessment valuation determination of real or personal property for an amount less than the fair market value that it made for the purpose of development assistance during the previous tax year. Additionally, the bill requires the Department of Revenue to annually compile and publish written and electronic reports on the information it receives from the reports required by the bill.
    
     According to our interpretation, this bill provides for changes in reporting development assistance but will not directly impact revenue.
    
     The Department of Revenue and the State Tax Department will incur additional administrative costs associated with passage of this bill of roughly $200,000 in the year following passage of the bill and roughly $150,000 per year thereafter. Costs for the Department of Revenue include the salary and benefits for two additional employees to manage the required tracking and compiling of information and to develop and manage the required Internet applications specified in the bill. Costs for the State Tax Department include the salary and benefits for an additional employee to properly track the cited development assistance and to provide for the revision of existing forms and computer programs. The Department of Commerce and some other State agencies may incur additional administrative costs due to passage of this bill. Local Property Tax levying bodies will incur additional administrative costs attributable to passage of this bill. Due to the depth of information required to be reported, Taxpayers receiving development assistance will incur additional compliance costs attributable to passage of this bill.


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 Good Jobs Internet Reporting Act. The bill requires the reporting of job creation and retention data, tax credit data and property tax redemptions, abatements and exemptions to the Department of Revenue. It requires the Department of Revenue to report the data to the Legislature and to publish the reports on the Internet.
    
     The proposed bill proposes a system by which agencies report to the Department of Revenue which, in turn, reports to the Legislature and all reports are published on line. The proposed bill fails to address any concerns with taxpayer information which may be protected under W. Va. Code §11-10-5d and other laws.