FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 09:27 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1921 |
Introduced |
SB65 |
|
|---|
| CBD Subject: |
Public Safety |
|---|
|
FUND(S):
7158
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted as currently drafted, Senate Bill 65 creates inconsistencies in W.Va. Code.
SB65 does not appear to amend WV Code §33-12C-7 as necessary to be consistent with the amendments to §33-3-33.
Please see the memorandum section of this fiscal note for details.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
If enacted as drafted, Senate Bill 65 would create inconsistencies between Surplus Lines tax in §33-12c-7 and the additional Fire and Casualty Surcharge in §33-3-33.
SB65 seeks to increase the Fire and Casualty surcharge from .55% to 1%, as set forth in §33-3-33, but does not likewise adjust the Surplus Lines tax in §33-12C-7 from 4.55% to 5%. SB65 would also increase the allocation percentage from 12% of the 4.55% to 20% of the revised 5%. SB65 would need to identify if the additional revenue should also be allocated to include the Fire Service Equipment Fund and Fire Service Recruitment and Retention Fund.
If both sections of the Code are amended to reflect the increase, the OIC estimates the total collections would be $31,488,474. This would be an increase in fire and casualty surcharge revenue of approximately $14,177,724, which would be distributed as follows (if both sections of the code are amended to reflect the same allocations):
$20,152,624 (64%) - Fire Protection Fund
$6,927,464 (22%) - Fire Service Equipment Fund
$4,408,386 (14%) - Fire Service Recruitment and Retention Fund
Fire Protection Fund also receives 25% of revenue collected from WV Code 33-3-14(d),the 1% Additional Premium Tax, which was $7,872,119 for FY2024.
Also, insurance premium taxes and surcharges are collected and remitted on a calendar year basis. Thus, any effective date of changes should take place on January 1, as opposed to July 1.
Person submitting Fiscal Note: Cheri Harpold
Email Address: cheri.a.harpold@wv.gov