Date Requested:January 22, 2014
Time Requested:01:06 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1844 Introduced SB402
CBD Subject: RECOVERY OF 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 permit recovery of service charges and fees charged to the Tax Commissioner by financial institutions relating to all permitted forms of payment returned or not duly paid. The bill authorizes rule-making.
    
     As written, this bill would permit the State Tax Department, on behalf of the State Tax Commissioner, to recover fees the Department is assessed, and pays, for payments that are stopped before the transaction has been completed. The bill defines the term payment “as any transaction performed at the request of the taxpayer, including claims for refund that result in a service charge or fee.”
    
     Charges are assessed to the State Tax Department for payments stopped due to insufficient funds in the account upon which the payment is to made, for accounts that are closed, or for erroneous account numbers. The total charges paid by the State Tax Department on stopped payments are roughly $25,000 per year.
    
     Passage of this bill would result in a reduction in State Tax Department costs of roughly $25,000 per year.
    

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 -25,000 -25,000
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 permit the State Tax Department, on behalf of the State Tax Commissioner, to recover fees the Department is assessed, and pays, for payments that are stopped before the transaction has been completed. The bill defines the term payment “as any transaction performed at the request of the taxpayer, including claims for refund that result in a service charge or fee.”
    
     Charges are assessed to the State Tax Department for payments stopped due to insufficient funds in the account upon which the payment is to made, for accounts that are closed, or for erroneous account numbers. The total charges paid by the State Tax Department are roughly $25,000 per year from roughly 1,500 stopped payments. Additionally, roughly 3,000 refund transactions are stopped.
    
     Passage of this bill would result in a reduction in State Tax Department costs of roughly $25,000 per year. Currently, the fees are paid out of funds appropriated to the State Tax Department. Passage of this bill would permit the reimbursement of the fees paid from the recovered charges.
    


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