Date Requested:January 09, 2014
Time Requested:04:08 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1287 Introduced SB229
CBD Subject: REINTRO2013-19RECYCLING PAID FEES
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 provide a credit against personal income tax for fees paid for recycling items of residential household waste, not to exceed $600. The bill also grants rule-making authority.
    
     The State Tax Department does not have sufficient data to accurately estimate the potential revenue impact of providing a Personal Income Tax Credit for the fees paid for recycling items of residential household waste. Information on the number of Taxpayers who recycle residential household waste or the amount of the fees paid is not readily available. However, the reduction in the General Revenue Fund due to passage of this tax credit could be substantial.
    
     Assuming that all tax returns claiming the proposed tax credit would be accepted as filed, additional administrative costs to the State Tax Department from the passage of this bill would be approximately $40,000. However, if the State Tax Department would be required to verify claims of the proposed tax credit, additional administrative costs to the State Tax Department would be substantial. Also, Taxpayers claiming the proposed tax credit may incur additional costs for providing supporting documentation.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
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, this bill would provide a credit against Personal Income Tax for fees paid for recycling items of residential household waste, not to exceed $600. The bill also grants rule-making authority.
    
     The State Tax Department does not have sufficient data to accurately estimate the potential revenue impact of providing a Personal Income Tax Credit for the fees paid for recycling items of residential household waste. Information on the number of Taxpayers who recycle residential household waste or the amount of the fees paid is not readily available. However, the reduction in the General Revenue Fund due to passage of this tax credit could be substantial.
    
     Assuming that all tax returns claiming the proposed tax credit would be accepted as filed, additional administrative costs to the State Tax Department from the passage of this bill would be approximately $40,000. However, if the State Tax Department would be required to verify claims of the proposed tax credit, additional administrative costs to the State Tax Department would be substantial. Also, Taxpayers claiming the proposed tax credit may incur additional costs for providing supporting documentation.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to provide a credit against personal income tax for fees paid for recycling items of residential household waste, not to exceed $600. The bill also grants rule-making authority.
    
     As written, it is not clear if the tax credit is only for fees a household pays directly for recycling or if the tax credit is available for fees paid to a waste removal business that subsequently recycles the waste.