Date Requested:April 17, 2013
Time Requested:05:09 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
201314001 Introduced SB1001
CBD Subject: TIF FINANCING
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 permit the Monongalia county commission to levy a special district excise tax for the benefit of the “University Town Centre” which comprises approximately 1,450 contiguous acres of land.
    
     As written in the bill and in the stated purpose above, passage of this bill would authorize the Monongalia County Commission to levy a special district excise tax for the benefit of the University Town Centre Economic Opportunity Development District. According to our interpretation, the Consumers Sales and Service Tax and Use Tax currently collected within the University Town Centre Economic Opportunity Development District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from business within the District up to an amount equivalent to the base year tax revenue. Incremental sales tax collections, above the base year amount, from sales and service activity within the University Town Centre Economic Opportunity Development District would be available for the development project. There would be some loss of State General Revenue over time to the extent that any new activity within the District displaces existing retail activities in the market region located outside of the District. However, such an impact can not be readily quantified.
    
     Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the State Treasurer’s Office and the Monongalia County Commission. Any additional costs would be recouped by allowances associated with the enactment of a proposed bill giving the State Tax Commissioner rule making authority to recoup any costs. The Monongalia County Commission would likely incur some minimal additional administrative costs to maintain and share a list of Taxpayers within the University Town Centre Economic Opportunity Development District required to collect and pay the Special District Excise 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 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 in the bill and in the stated purpose above, passage of this bill would authorize the Monongalia County Commission to levy a special district excise tax for the benefit of the University Town Centre Economic Opportunity Development District. According to our interpretation, the Consumers Sales and Service Tax and Use Tax currently collected within the University Town Centre Economic Opportunity Development District would be re-designated as a Special District Excise Tax for deposit into a special fund, for funding the development. The General Revenue Fund would retain sales tax proceeds from business within the District up to an amount equivalent to the base year tax revenue. Incremental sales tax collections, above the base year amount, from sales and service activity within the University Town Centre Economic Opportunity Development District would be available for the development project. There would be some loss of State General Revenue over time to the extent that any new activity within the District displaces existing retail activities in the market region located outside of the District. However, such an impact can not be readily quantified.
    
     Additional administrative costs associated with passage of this bill would likely be incurred by the State Tax Department, the State Treasurer’s Office and the Monongalia County Commission. Any additional costs would be recouped by allowances associated with the enactment of a proposed bill giving the State Tax Commissioner rule making authority to recoup any costs. The Monongalia County Commission would likely incur some minimal additional administrative costs to maintain and share a list of Taxpayers within the University Town Centre Economic Opportunity Development District required to collect and pay the Special District Excise Tax.
    


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