|Date Requested:January 28, 2014
Time Requested:01:59 PM
| FUND(S) |
Sources of Revenue
Legislation creates:A New Program,A New Fund
Effect this measure will have on costs and revenues of state government.
|The purpose of this proposed legislation is to require any business receiving grants,loans or any other type of incentive including tax credits for job creation to file an annual progress report with the West Virginia Development Office. From the information gathered the Development Office is to provide a report to the Legislature annually. Also if the Development Office finds that a business is not complying with the requirements of the economic incentive it may recapture the moneys expended on the incentive.|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||262,000||262,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||262,000||262,000|
3. Explanation of above estimates (including long-range effect):
The above estimate is based on the costs of adding two additional staff to our Research Unit to compile this information from the various businesses receiving these incentives. The other costs contained in this fiscal note are to cover to cover the cost of printing the report as well as the cost of hiring consultants as well as attorneys to collect the business incentives back from companies determined to be in noncomplaince. The revenue estimate is based on the amount necessary to implement this program . However we have no idea how much the 1% fee each company is to submit with their report would generate each year at this time.
|The only type of business incentive that the Development Office has direct control is grants for worker training through the Guaranteed Workfoce Program . Most of the loans are administerd by the West Virginia Economic Development Authority which is an independent agency and not part of the Development Office. Whether a business qualifies for and how much of a tax incentive a company qualifies for is determined by the State Tax department not by us. All of this information is subject to the confidentiality standards pretaining to tax information.|