FISCAL NOTE



FUND(S):

General Revenue Fund

Sources of Revenue:

General 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 reduced rates for low-income residential customers of privately owned water utilities. As written, this bill would authorize privately owned water utilities to voluntarily implement a rate design featuring reduced rates and charges for service to residential utility customers receiving (1) Social Security Supplemental Security Income (SSI), (2) Temporary Assistance for Needy Families (TANF), (3) Temporary Assistance for Needy Families Unemployed Parent Program (TANF-UP), or (4) food stamps. The bill would extend the credit currently applicable to the provision of reduced electric and gas utility rates to water utility rates. According to our interpretation, the extension of the credit to the provision of reduced water utility rates for low-income residential users would reduce the General Revenue Fund by roughly $400,000 per year beginning in Fiscal Year 2010. Additional administrative costs to the State Tax Department associated with this bill would be minimal. The Public Service Commission and the Department of Health and Human Resources will likely have additional administrative costs due to the provisions of this bill.



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 -400,000 -400,000


Explanation of above estimates (including long-range effect):


As written, this bill would authorize privately owned water utilities to voluntarily implement a rate design featuring reduced rates and charges for service to residential utility customers receiving (1) Social Security Supplemental Security Income (SSI), (2) Temporary Assistance for Needy Families (TANF), (3) Temporary Assistance for Needy Families Unemployed Parent Program (TANF-UP), or (4) food stamps. The bill would extend the credit currently applicable to the provision of reduced electric and gas utility rates to water utility rates. According to our interpretation, the extension of the credit to the provision of reduced water utility rates for low-income residential users would reduce the General Revenue Fund by roughly $400,000 per year beginning in Fiscal Year 2010. Unlike electric and natural gas utility service, the majority of water utility service is provided by municipalities and other public entities. Additional administrative costs to the State Tax Department associated with this bill would be minimal. The Public Service Commission and the Department of Health and Human Resources will likely have additional administrative costs due to the provisions of this bill.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us