FISCAL NOTE
FUND(S):
Special Economic Opportunity Development District Fund
Sources of Revenue:
Special 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 prescribe the base and rate of tax for purposes of the special district excise taxes imposed pursuant to the authorizing code sections, and to grant the State Tax Commissioner discretion to require electronic filing of returns and prescribe rules relating to the electronic filing of returns related to such taxes, and to require the electronic payment of such taxes and prescribe rules relating to payment of such taxes, and prescribing what such rules shall contain, and to authorize sharing of tax information with bond trustees and authorize secondary sharing of such information with the bond issuers, bondholders and bond counsel and to make such trustees, bondholders and bond counsel subject to the confidentiality requirements for tax information set forth in West Virginia Code.
As written, the bill provides that the special district excise tax rate is to be identical to the rate or rates of the Consumers Sales and Service Tax. Previously, the special district excise tax rate was required to be stated in an order enacted by a local governing body. The proposed legislation will permit the rates for the two taxes to remain equivalent if there are changes in the Consumers Sales and Service Tax rate or rates, such as a reduction in the tax rate on food for home consumption. The bill also makes other changes as indicated in the stated purpose.
According to our interpretation and assuming that the taxation of gasoline and special fuel will remain unchanged from current law, passage of this bill would not result in any change in revenue. However, provisions related to requiring electronic filing may enhance the timing of revenue transfers to the special districts.
There would be no additional administrative costs to the State Tax Department 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 |
0 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to prescribe the base and rate of tax for purposes of the special district excise taxes imposed pursuant to the authorizing code sections, and to grant the State Tax Commissioner discretion to require electronic filing of returns and prescribe rules relating to the electronic filing of returns related to such taxes, and to require the electronic payment of such taxes and prescribe rules relating to payment of such taxes, and prescribing what such rules shall contain, and to authorize sharing of tax information with bond trustees and authorize secondary sharing of such information with the bond issuers, bondholders and bond counsel and to make such trustees, bondholders and bond counsel subject to the confidentiality requirements for tax information set forth in West Virginia Code.
As written, the bill provides that the special district excise tax rate is to be identical to the rate or rates of the Consumers Sales and Service Tax. Previously, the special district excise tax rate was required to be stated in an order enacted by a local governing body. The proposed legislation will permit the rates for the two taxes to remain equivalent if there are changes in the Consumers Sales and Service Tax rate or rates, such as a reduction in the tax rate on food for home consumption. The bill also makes other changes as indicated in the stated purpose.
According to our interpretation and assuming that the taxation of gasoline and special fuel will remain unchanged from current law, passage of this bill would not result in any change in revenue. However, provisions related to requiring electronic filing may enhance the timing of revenue transfers to the special districts.
There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
Memorandum
The stated purpose of this bill is to prescribe the base and rate of tax for purposes of the special district excise taxes imposed pursuant to the authorizing code sections, and to grant the State Tax Commissioner discretion to require electronic filing of returns and prescribe rules relating to the electronic filing of returns related to such taxes, and to require the electronic payment of such taxes and prescribe rules relating to payment of such taxes, and prescribing what such rules shall contain, and to authorize sharing of tax information with bond trustees and authorize secondary sharing of such information with the bond issuers, bondholders and bond counsel and to make such trustees, bondholders and bond counsel subject to the confidentiality requirements for tax information set forth in West Virginia Code.
As written, this bill contains language relating to the taxation of gasoline and special fuel. It does not appear that the language relating to the taxation of gasoline and special fuel accomplishes the assumed intent.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us