FISCAL NOTE
FUND(S):
Solid Waste Reclamation & Environmental Response Fund, Solid Waste Enforcement Fund, Solid Waste Management Board--Reserve Fund, Recycling Assistance Fund, Department of Natural Resources--Law Enforcement Fund, Solid Waste Management Board--Planning Fund,
Sources of Revenue:
Special Fund see above
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 reduce all solid waste assessment fees in West Virginia effective after the date the solid waste facility in McDowell County receives forty-five thousand tons of solid waste in any month.
As written, this bill would require the Secretary of the Department of Environmental Protection to give written notice to solid waste disposal facilities, the Public Service Commission, and the State Tax Commissioner of the contingent tax rate changes listed below:
Fee Current Rate Proposed Rate
Solid Waste Assessment Fee $1.75 / ton $0.90 / ton
Recycling Assessment Fee $2.00 / ton $1.60 / ton
Landfill Closure Assistance Fee $3.50 / ton $2.90 / ton
Solid Waste Assessment Interim Fee $1.00 / ton $0.80 / ton
The proposed rates would be effective on the first day of the calendar month that begins sixty days after the end of the calendar month during which the commercial solid waste facility in McDowell County accepts more than 45,000 tons of waste.
The State Tax Department does not have access to the information necessary to determine the revenue impact of this bill. However, based upon an algebraic comparison of the proposed rates to the current rates, the Statewide tonnage of solid waste subject to the indicated fees would have to increase by slightly more than 33 percent in order to generate the same revenue as the current rates. Additionally, some fees require a different allocation (e.g., from the State to counties) when certain tonnage thresholds are reached.
Additional administrative costs to the State Tax Department associated with this bill would be minimal.
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 |
0 |
Explanation of above estimates (including long-range effect):
Passage of this bill would require the Secretary of the Department of Environmental Protection to give written notice to solid waste disposal facilities, the Public Service Commission, and the State Tax Commissioner of the contingent tax rate changes listed below:
Fee Current Rate Proposed Rate
Solid Waste Assessment Fee $1.75 / ton $0.90 / ton
Recycling Assessment Fee $2.00 / ton $1.60 / ton
Landfill Closure Assistance Fee $3.50 / ton $2.90 / ton
Solid Waste Assessment Interim Fee $1.00 / ton $0.80 / ton
The proposed rates would be effective on the first day of the calendar month that begins sixty days after the end of the calendar month during which the commercial solid waste facility in McDowell County accepts more than 45,000 tons of waste.
The State Tax Department does not have access to the information necessary to determine the revenue impact of this bill. However, based upon an algebraic comparison of the proposed rates to the current rates, the Statewide tonnage of solid waste subject to the indicated fees would have to increase by slightly more than 33 percent in order to generate the same revenue as the current rates. Additionally, some fees require a different allocation (e.g., from the State to counties) when certain tonnage thresholds are reached.
Additional administrative costs to the State Tax Department associated with this bill would be minimal.
Memorandum
The stated purpose of this bill is to reduce all solid waste assessment fees in West Virginia effective after the date the solid waste facility in McDowell County receives forty-five thousand tons of solid waste in any month.
As written, this bill proposes a new set of tax rates following the first time a commercial solid waste disposal facility in McDowell County receives 45,000 tons in a month. However, the bill does not provide for an offsetting increase in the tax rates if tonnage at the designated facility falls below 45,000 tons in a month.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us