FISCAL NOTE
Date Requested: February 09, 2024
Time Requested: 03:02 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1336 |
Introduced |
HB5542 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to allow for a full rebate for the amount of taxes paid for aircraft.
This bill would provide a credit against the Personal Income Tax or Corporation Net Income Tax equal to the amount of West Virginia Property Tax timely paid during the taxable year. According to our interpretation, the revenue loss resulting from this bill would be up to $300,000 per year beginning in FY2026.
Administrative costs incurred by the Tax Division would be $20,000 in FY2025.
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 |
20,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-300,000 |
Explanation of above estimates (including long-range effect):
This bill would provide a credit against the Personal Income Tax or Corporation Net Income Tax equal to the amount of West Virginia Property Tax timely paid during the taxable year. According to our interpretation, the revenue loss resulting from this bill would be up to $300,000 per year beginning in FY2026.
Administrative costs incurred by the Tax Division would be $20,000 in FY2025.
Memorandum
The stated purpose of this bill is to allow for a full rebate for the amount of taxes paid for aircraft.
The placement of this section is in W. Va. Code §11-6H, which provides advantageous property tax treatment for “Special aircraft property,” which is owned or leased by commercial airlines or private carriers and is valued at salvage value for property tax purposes. W. Va. Code §11-6H-7 provides the effective date for this article is for property tax assessment years on and after July 1, 2009. This bill has no effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov