FISCAL NOTE

Date Requested: March 10, 2017
Time Requested: 01:33 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2840 Introduced SB573
CBD Subject:


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

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 change the calculation of tax rates on wind-powered generating units to match those of other recently implemented power generating facilities. According to the provisions of this bill, after December 31, 2017, the taxable generating capacity of a generating unit utilizing a turbine powered primarily by wind will increase from twelve percent to forty percent of the official capacity of the unit. Passage of this bill will result in a $1.3 million increase in the General Revenue Fund in FY2018 and $3.2 million per year thereafter. Additional administrative costs incurred by the State Tax Department would be $2,000 in FY2018.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 2,000 0
Personal Services 0 1,000 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,000 0
2. Estimated Total Revenues 0 1,300,000 3,200,000


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


According to the provisions of this bill, after December 31, 2017, the taxable generating capacity of a generating unit utilizing a turbine powered primarily by wind will increase from twelve percent to forty percent of the official capacity of the unit. Passage of this bill will result in a $1.3 million increase in the General Revenue Fund in FY2018 and $3.2 million per year thereafter. Additional administrative costs incurred by the State Tax Department would be $2,000 in FY2018.



Memorandum


The stated purpose of this bill is to change the calculation of tax rates on wind-powered generating units to match those of other recently implemented power generating facilities. This proposed bill modifies W.Va. Code ยง11-13-2o(c)(2) so that, after December 31, 2017, the taxable generating capacity of a generating unit utilizing a turbine powered primarily by wind shall equal 40 percent of the official capacity of the unit. Therefore, wind-powered generating units would be taxed at the same taxable generating capacity as other new generating units. However, the taxable generating capacity of a county or municipally owned generating unit will remain at zero percent of the official capacity of the unit, as it is under current law. Peaking units are not included in this bill. The proposed changes in this bill will not affect the tax rates under subsection (b)(2). There may be a bill title defect as the bill title does not state the bill has an internal effective date for this change.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov