FISCAL NOTE
Date Requested: January 10, 2024
Time Requested: 10:23 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1427 |
Introduced |
SB187 |
|
|---|
| CBD Subject: |
Public Safety |
|---|
|
FUND(S):
7158 Fire Protection Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted as currently drafted, Senate Bill 187 creates inconsistencies in W.Va. Code. Therefore, the WV OIC is not able to accurately estimate the fiscal impact of SB187.
SB187 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 |
2024
Increase/Decrease
(use"-") |
2025
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 187 would create inconsistencies between Surplus Lines tax in §33-12c-7 and the additional Fire and Casualty Surcharge in §33-3-33.
SB187 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%. The surplus lines tax is the sum of all taxes and surcharges levied against other lines of insurance.
If both sections of the Code are amended to reflect the increase, the OIC estimates that there would be an increase in fire and casualty surcharge revenues of approximately $13,063,797. 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: Rhonda Hartwell
Email Address: rhonda.c.hartwell@wv.gov