FISCAL NOTE
Date Requested: February 29, 2024
Time Requested: 11:00 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3998 |
Introduced |
SB873 |
|
|---|
| 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 purpose of this bill relates to the due date for installment payments for Severance Tax. Specifically, the bill deletes the provisos that the June payment is to be made by June 15 instead of June 30.
According to our interpretation, this bill changes the June Severance Tax installment payment from June 15 to June 30 for payments exceeding $1,000 per month. Passage of this bill would reduce General Revenue Fund collections between $10 million to $15 million in FY2025 and increase General Revenue Fund collections by the same amount in FY2026. There would be no additional fiscal impact beyond FY2026.
Additional administrative costs incurred by the State Tax Department would be $6,000 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 |
6,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
6,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill changes the June Severance Tax installment payment from June 15 to June 30 for payments exceeding $1,000 per month. Passage of this bill would reduce General Revenue Fund collections between $10 million to $15 million in FY2025 and increase General Revenue Fund collections by the same amount in FY2026. There would be no additional fiscal impact beyond FY2026.
Additional administrative costs incurred by the State Tax Department would be $6,000 in FY2025.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov