FISCAL NOTE
FUND(S):
3265
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.
In FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $148,874.17.
In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37.
A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59.
Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. This represents the amount collected from day-use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69.
To summarize (assuming a July 1, 2009 effective date):
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17)
Camping $1,221,123.68 $(122,112.37) $(122,112.37)
Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59)
Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69)
TOTAL $(1,090,457.82)
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2009 Increase/Decrease (use"-") |
2010 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
-1,090,457 |
-1,090,457 |
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 |
-1,090,457 |
-1,090,457 |
Explanation of above estimates (including long-range effect):
In FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $148,874.17.
In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37.
A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59.
Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. This represents the amount collected from day-use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69.
To summarize (assuming a July 1, 2009 effective date):
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17)
Camping $1,221,123.68 $(122,112.37) $(122,112.37)
Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59)
Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69)
TOTAL $(1,090,457.82)
Memorandum
Person submitting Fiscal Note: Keith Wilson
Email Address: keithwilson@wvdnr.gov