FISCAL NOTE
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road 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 exempt all gallons of gasoline and propane gas for any church, religious sect, society or denomination or for the use or benefit of any church, religious sect, society or denomination as consumption use from the excise tax on gasoline or special fuel.
As written, we are unable to accurately estimate the loss to the State Road Fund from passage of this bill. This bill provides a refundable exemption from the flat rate component of the Motor Fuel Excise Tax on purchases of gasoline and propane gas by churches and other religious sects. The bill is very broad in scope. It does not provide guidance as to the use of the propane or gasoline (e.g., heating or other off-road use) nor does it specifically define church or religious denomination or sect.
Currently, all sales of propane are per se exempt from the flat rate component of the Motor Fuel Tax under §11-14C-9(a)(4). Also, most off-highway uses of gasoline and special fuel are allowed a refundable exemption from the flat rate component of the tax (e.g., special fuel used for heating public or private buildings).
Additional administrative costs to the State Tax Department would be about $20,000 in the current fiscal year due to notifying taxpayers and adding new equipment for additional processing of refunds. Thereafter, additional costs would be about $22,000 per year due to the hiring of personnel for the processing of additional refunds.
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 |
20,047 |
21,607 |
21,607 |
| Personal Services |
0 |
20,760 |
20,760 |
| Current Expenses |
4,047 |
847 |
847 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
16,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
As written, we are unable to accurately estimate the loss to the State Road Fund from passage of this bill. This bill provides a refundable exemption from the flat rate component of the Motor Fuel Excise Tax on purchases of gasoline and propane gas by churches and other religious sects. The bill is very broad in scope. It does not provide guidance as to the use of the propane or gasoline (e.g., heating or other off-road use) nor does it specifically define church or religious denomination or sect.
Currently, all sales of propane are per se exempt from the flat rate component of the Motor Fuel Tax under §11-14C-9(a)(4). Also, most off-highway uses of gasoline and special fuel are allowed a refundable exemption from the flat rate component of the tax (e.g., special fuel used for heating public or private buildings).
Additional administrative costs to the State Tax Department would be about $20,000 in the current fiscal year due to notifying taxpayers and adding new equipment for additional processing of refunds. Thereafter, additional costs would be about $22,000 per year due to the hiring of personnel for the processing of additional refunds.
Memorandum
The stated purpose of this bill is to exempt all gallons of gasoline and propane gas for any church, religious sect, society or denomination or for the use or benefit of any church, religious sect, society or denomination as consumption use from the excise tax on gasoline or special fuel.
The bill is unclear as to what qualifies as “use or benefit as consumption use.” This term is broad and could lead to potential problems. Also, there is no specific definition of church or religious sect or denomination. Therefore, the bill is very broad in scope.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us