Date Requested:March 25, 2013
Time Requested:02:17 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2965 Introduced SB634
CBD Subject: ADD A TAX TO TELECOMMUNICATION COMPANIES
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
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 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
3. 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
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     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.