FISCAL NOTE
FUND(S):
General Revenue Fund, Infrastructure Road Improvement Reserve Account
Sources of Revenue:
General Fund,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 provide for the planning, construction, and expansion of new or existing water, sewer, gas, telecommunication lines or facilities and other infrastructure in conjunction with the construction of the new roads projects and to provide a tax credit for taxpayers assisting in the completion of projects recommended by the council and associated roads.
As written, this bill provides that the West Virginia Infrastructure and Jobs Development Council is to advise the Commissioner of the Division of Highways on the feasibility of the expansion of new or existing gas lines and telecommunication lines or facilities and other infrastructure. This extends the Council’s advisory role beyond water and sewer lines, as provided in the current statute. The bill also provides the Council with the authority to establish highway construction infrastructure planning teams, each consisting of seven voting members. The bill also provides for appropriation, by the Legislature, of $10 million annually to the Infrastructure Road Improvement Reserve Account. Additionally, the bill provides for a nonrefundable tax credit available to eligible taxpayers who contribute to the completion of a project for water, sewer, or telecommunications lines or facilities that is receiving moneys from the Infrastructure Road Improvement Reserve Account and for a nonrefundable tax credit available to eligible taxpayers who contribute to the completion of a project the Council has recommended for a loan, loan guarantee, grant or other assistance. Based upon information submitted by an eligible taxpayer, the West Virginia Infrastructure and Jobs Development Council will determine the amount of the tax credit the taxpayer can use to reduce liability for the Business Franchise Tax, Corporation Net Income Tax, and Personal Income Tax.
The State Tax Department does not have access to the information necessary to estimate the revenue impact of the tax credit proposed by this bill.
Assuming that all tax returns claiming the new credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.
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 |
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 provide for the planning, construction, and expansion of new or existing water, sewer, gas, telecommunication lines or facilities and other infrastructure in conjunction with the construction of the new roads projects and to provide a tax credit for taxpayers assisting in the completion of projects recommended by the council and associated roads.
Passage of this bill would provide that the West Virginia Infrastructure and Jobs Development Council is to advise the Commissioner of the Division of Highways on the feasibility of the expansion of new or existing gas lines and telecommunication lines or facilities and other infrastructure. This extends the Council’s advisory role beyond water and sewer lines, as provided in the current statute. The bill also provides the Council with the authority to establish highway construction infrastructure planning teams, each consisting of seven voting members. The bill also provides for appropriation, by the Legislature, of $10 million annually to the Infrastructure Road Improvement Reserve Account. Additionally, the bill provides for a nonrefundable tax credit available to eligible taxpayers who contribute to the completion of a project for water, sewer, or telecommunications lines or facilities that is receiving moneys from the Infrastructure Road Improvement Reserve Account and for a nonrefundable tax credit available to eligible taxpayers who contribute to the completion of a project the Council has recommended for a loan, loan guarantee, grant or other assistance. Based upon information submitted by an eligible taxpayer, the West Virginia Infrastructure and Jobs Development Council will determine the amount of the tax credit the taxpayer can use to reduce liability for the Business Franchise Tax, Corporation Net Income Tax, and Personal Income Tax.
The State Tax Department does not have access to the information necessary to estimate the revenue impact of the tax credit proposed by this bill.
Assuming that all tax returns claiming the new credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.
Memorandum
The stated purpose of this bill is to provide for the planning, construction, and expansion of new or existing water, sewer, gas, telecommunication lines or facilities and other infrastructure in conjunction with the construction of the new roads projects and to provide a tax credit for taxpayers assisting in the completion of projects recommended by the council and associated roads.
As written, the bill uses the terms “telecommunications lines” and “facilities and other infrastructure” without providing definitions as to their meaning.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us