Date Requested:January 31, 2014
Time Requested:12:46 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1811 Introduced SB456
CBD Subject: ACUTE CARE HOSPITALS
FUND(S)
Eligible Acute Care Provider Enhancement Account
Sources of Revenue
Other Fund Eligible Acute Care Provi
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 remove the expiration date for the tax rate on eligible acute care hospitals.
    
     Although the stated purpose indicates the intent of the bill is “to remove the expiration date for the tax rate on eligible acute care hospitals,” it is our interpretation that the proposed amendment to W. Va. Code §11-27-38 would merely extend the expiration date from June 30, 2014 to June 30, 2015. Additionally, proposed changes in the bill include increasing the tax rate from 0.45 percent to 0.60 percent and extending by one year the previously enacted provisions for disposition of any funds remaining in the Eligible Acute Care Provider Enhancement Account.
    
     According to our interpretation and assuming that the change in the tax rate would be effective for gross receipts received on or after July 1, 2014, passage of this bill would provide additional revenue for the Eligible Acute Care Provider Enhancement Account of roughly $16.4 million in FY2015 and roughly $5.3 million in FY2015.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. The Department of Health and Human Resources Bureau of Medical Services may incur additional administrative costs associated with passage of this bill.

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 16,400,000 5,300,000
3. Explanation of above estimates (including long-range effect):
     Passage of this bill would extend the expiration date for the tax rate on eligible acute care hospitals from June 30, 2014 to June 30, 2015. Additionally, proposed changes in the bill include increasing the tax rate from 0.45 percent to 0.60 percent and extending by one year the previously enacted provisions for disposition of any funds remaining in the Eligible Acute Care Provider Enhancement Account.
    
     According to our interpretation and assuming that the change in the tax rate would be effective for gross receipts received on or after July 1, 2014, passage of this bill would provide additional revenue for the Eligible Acute Care Provider Enhancement Account of roughly $16.4 million in FY2015 and roughly $5.3 million in FY2015.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal. The Department of Health and Human Resources Bureau of Medical Services may incur additional administrative costs associated with passage of this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to remove the expiration date for the tax rate on eligible acute care hospitals.
    
     Although the stated purpose indicates the intent of the bill is “to remove the expiration date for the tax rate on eligible acute care hospitals,” it is our interpretation that the proposed amendment to W. Va. Code §11-27-38 would merely extend the expiration date from June 30, 2014 to June 30, 2015.