FISCAL NOTE



FUND(S):

State Road Fund

Sources of Revenue:

Other Fund State Road Fund

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 remove certain discounts from the motor fuel excise tax. As written, this bill would eliminate the Motor Fuel Tax discounts for suppliers and permissive suppliers who timely file tax returns with the tax payment and discounts to licensed distributors, suppliers, or permissive suppliers attributable to sales from permissive suppliers or suppliers. According to our interpretation, elimination of the discounts, as proposed by this bill, would result in additional Motor Fuel Tax revenue of roughly $2.2 million per year, which would be deposited to the State Road Fund. Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $5,000.



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 5,000 0 0
Personal Services 0 0 0
Current Expenses 5,000 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 2,200,000 2,200,000


Explanation of above estimates (including long-range effect):


Passage of this bill would eliminate the Motor Fuel Tax discounts for suppliers and permissive suppliers who timely file tax returns with the tax payment and discounts to licensed distributors, suppliers, or permissive suppliers attributable to sales from permissive suppliers or suppliers. According to our interpretation, elimination of the discounts, as proposed by this bill, would result in additional Motor Fuel Tax revenue of roughly $2.2 million per year, which would be deposited to the State Road Fund. Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $5,000 for printing an mailing a notification to the 100 Taxpayers that would be impacted by the elimination of the discounts.



Memorandum






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