FUND(S):

Division of Tourism

Sources of Revenue:

Special Fund

Legislation creates:

A New Program



Fiscal Note Summary


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


     The stated purpose of this bill is to create a tax on telecommunications businesses to provide as close as reasonably possible, $10 million in revenue to benefit promotion and maintenance of outdoor activities.
    
     As written, the passage of this bill would require the State Tax Department to craft a new tax on telecommunications companies to provide $10 million per year to the Division of Tourism for the promotion and maintenance of outdoor activities in West Virginia.
    
     Additional administrative costs to the State Tax Department would be at least $25,000 next fiscal year for programming and other costs related to the creation of a new tax.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 25,000 0
Personal Services 0 0 0
Current Expenses 0 120 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 24,880 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


     The stated purpose of this bill is to create a tax on telecommunications businesses to provide as close as reasonably possible, $10 million in revenue to benefit promotion and maintenance of outdoor activities.
    
     As written, the passage of this bill would require the State Tax Department to craft a new tax on telecommunications companies to provide $10 million per year to the Division of Tourism for the promotion and maintenance of outdoor activities in West Virginia.
    
     Additional administrative costs to the State Tax Department would be at least $25,000 next fiscal year for programming and other costs related to the creation of a new tax.



Memorandum


     The stated purpose of this bill is to create a tax on telecommunications businesses to provide as close as reasonably possible, $10 million in revenue to benefit promotion and maintenance of outdoor activities.
    
     The reference to telecommunication businesses “beginning and ending within this state” is not defined and may lend itself to administrative issues. The bill does not provide for rules to administer this tax.
    



    Person submitting Fiscal Note: Mark B. Muchow
    Email Address: Roger.D.Cox@wv.gov