FISCAL NOTE
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 eliminate the business franchise tax effective January 1, 2013.
According to our interpretation, passage of this bill would result in a decline in the General Revenue Fund as shown in the table below. Although the tax is abolished for tax years beginning on or after January 1, 2013, current collection patterns indicate some residual collections would occur up to three years later.
General Revenue Fund
FY2013 ($18.0 million)
FY2014 ($44.8 million)
FY2015 ($46.2 million)
FY2016 ($48.4 million)
There would be no additional administrative costs associated with passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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 |
-48,400,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would result in a decline in the General Revenue Fund as shown in the table below. Although the tax is abolished for tax years beginning on or after January 1, 2013, current collection patterns indicate some residual collections would occur up to three years later.
General Revenue Fund
FY2013 ($18.0 million)
FY2014 ($44.8 million)
FY2015 ($46.2 million)
FY2016 ($48.4 million)
There would be no additional administrative costs associated with passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us