FISCAL NOTE
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
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 |
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
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.”
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov