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 revise the Municipal Economic Opportunity Development District Act to enhance the Act’s ability to generate economic development in this state. Such changes include: defining the term affordable housing; allowing all municipalities to be eligible to create such districts; including the remediation of former coal mining sites as permissible development expenditures; allowing a municipality to establish reserves related to its financing plans that are consistent with prevailing capital market conditions as opposed to ordinary capital market conditions; requiring the development office to determine whether the development enabled by such districts should include a component of affordable housing; allowing the development office to decrease the minimum percentage of tax increment revenue deposited into the General Revenue Fund from twenty percent to ten percent in certain specified circumstances; and revising the act to correct errors and inconsistencies contained therein.
As written and in addition to the changes specified in the stated purpose, this bill directs the Development Office to consider whether the proposed economic development project is large enough to require that it contain mixed used development consisting of a housing component with at least 10% of the housing units in the district allocated for affordable housing. Also, the bill authorizes the Development Office to reduce the minimum percentage of the excess special district excise taxes to be deposited into the General Revenue Fund when the economic development project (1) contains expenditures in excess of $100 million, (2) the project does not require the expenditure of additional State funds for acquisition, construction, reconstruction, improvement, enlargement, or extension of roadways, rights-of-way, sidewalks, traffic signals, water or sewer lines and other public infrastructure, and (3) the project contains mixed use development with a housing component with at least 10% of the housing units in the district allocated for affordable housing. According to our interpretation, passage of this bill will only have a minimal impact on State revenue.
Additional administrative costs to the State Tax Department associated with this bill would be minimal. The Development Office may incur additional administrative costs attributable to passage 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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
As written and in addition to the changes specified in the stated purpose, this bill directs the Development Office to consider whether the proposed economic development project is large enough to require that it contain mixed used development consisting of a housing component with at least 10% of the housing units in the district allocated for affordable housing. Also, the bill authorizes the Development Office to reduce the minimum percentage of the excess special district excise taxes to be deposited into the General Revenue Fund when the economic development project (1) contains expenditures in excess of $100 million, (2) the project does not require the expenditure of additional State funds for acquisition, construction, reconstruction, improvement, enlargement, or extension of roadways, rights-of-way, sidewalks, traffic signals, water or sewer lines and other public infrastructure, and (3) the project contains mixed use development with a housing component with at least 10% of the housing units in the district allocated for affordable housing. According to our interpretation, passage of this bill will only have a minimal impact on State revenue.
Additional administrative costs to the State Tax Department associated with this bill would be minimal. The Development Office may incur additional administrative costs attributable to passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us