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 clarify that the West Virginia Code §11-12-3 requirements, exemptions and exceptions apply with relation to the business registration tax and business registration certificate, and to clarify that, subject to the requirements, exemptions and exceptions of West Virginia Code §11-12-3, the tax is imposed for each and every issuance, reissuance or reinstatement of a business registration certificate. According to our interpretation, this bill largely proposes a technical correction. The bill would make clear that the businesses that were exempt from the requirement to obtain a Business Registration Certificate and business activities that were exempt from payment of the Business Registration Tax prior to the removal of the biennial renewal requirement are exempt from the registration and tax payment requirement under current law. Since the bill is a technical correction, there would no revenue consequences. There would be no additional administrative costs to the State Tax Department associated with this bill.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
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):


Passage of this bill would make clear that the businesses that were exempt from the requirement to obtain a Business Registration Certificate and business activities that were exempt from payment of the Business Registration Tax prior to the removal of the biennial renewal requirement are exempt from the registration and tax payment requirement under current law. Since the bill is a technical correction, there would no revenue consequences. There would be no additional administrative costs to the State Tax Department associated with this bill.



Memorandum


The stated purpose of this bill is to clarify that the West Virginia Code §11-12-3 requirements, exemptions and exceptions apply with relation to the business registration tax and business registration certificate, and to clarify that, subject to the requirements, exemptions and exceptions of West Virginia Code §11-12-3, the tax is imposed for each and every issuance, reissuance or reinstatement of a business registration certificate. The bill has typographical error in §11-12-5(a). The phrase “June 1 of the following year” should be “June 30 of the following year.”



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov