Date Requested:January 22, 2014
Time Requested:01:10 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1846 Introduced SB416
CBD Subject: OIL- AND NATURAL GAS
FUND(S)
Noner
Sources of Revenue
Other Fund None
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

     The purpose of this bill is to clarify that the provisions of code sections §11-6K-4 and §116K-5 apply to both oil and natural gas properties and reserve oil and natural gas property.
    
     As written, this bill clarifies that both producing and reserve oil properties and producing and reserve natural gas properties are to receive tentative appraisals from the State Tax Commissioner. The bill also clarifies that the tentative appraisals of both producing and reserve oil properties and producing and reserve natural gas properties may petition the State Tax Commissioner to request a review of the tentative appraisal.
    
     According to our interpretation that the bill merely provides a clarification of current law, there will be no revenue impact attributable passage of the bill.
    
     Passage of this bill is expected to reduce State Tax Department administrative costs by roughly $5,000 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 -5,000 -5,000
Personal Services 0 0 0
Current Expenses 0 -5,000 -5,000
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 clarifies that both producing and reserve oil properties and producing and reserve natural gas properties are to receive tentative appraisals from the State Tax Commissioner. The bill also clarifies that the tentative appraisals of both producing and reserve oil properties and producing and reserve natural gas properties may petition the State Tax Commissioner to request a review of the tentative appraisal.
    
     According to our interpretation that the bill merely provides a clarification of current law, there will be no revenue impact attributable passage of the bill.
    
     Passage of this bill is expected to reduce State Tax Department administrative costs by roughly $5,000 per year due to fewer required mailings.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The purpose of this bill is to clarify that the provisions of code sections §11-6K-4 and §116K-5 apply to both oil and natural gas properties and reserve oil and natural gas property.
    
     As written, the bill clarifies that the provisions of W. Va. Code §11-6K-4 and §11-6K-5 apply both to producing oil and gas property and reserve oil and gas property. The bill proposes to accomplish by striking the phrases “oil-producing” and “gas-producing” and replacing them with the words “oil” and “gas” respectively. However, it appears that one occurrence of the phrase “oil-producing” in the first provision in subdivision (e)(1) was not replaced with “oil.”