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 have a consistent threshold of $10,000 tax liability to require taxpayers to file electronically; to require certain taxpayers to pay by electronic funds transfer; to require a tax return preparer who prepares at least twenty-five returns to file the returns electronically; and to require an employer with fifty or more employees to file withholding returns electronically.
As indicated in the stated purpose, this bill proposes several changes in tax administration. According to our interpretation, the proposed changes do not increase or decrease any taxes; thus there would be no change in tax revenue. Due to the possible earlier deposit of some tax payments, there may be a minimal increase in interest income.
Due to the lower per unit cost of processing electronic returns and payments compared to paper returns and payments, passage of the indicated administrative provisions may result in a reduction in administrative costs of roughly $50,000 per year.
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 |
-50,000 |
-50,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-50,000 |
-50,000 |
| 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 several changes in tax administration. According to our interpretation, the proposed changes do not increase or decrease any taxes; thus there would be no change in tax revenue. Due to the possible earlier deposit of some tax payments, there may be a minimal increase in interest income.
Due to the lower per unit cost of processing electronic returns and payments compared to paper returns and payments, passage of the indicated administrative provisions may result in a reduction in administrative costs of roughly $50,000 per year.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov