FISCAL NOTE
FUND(S):
GENERAL REVENUE
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 legislation does not impact the agency but would have an impact on the State’s General Fund.
This bill would give a corporate tax credit to any railroad in West Virginia whose track is used by a daily commuter railroad service operating in West Virginia. The credit would be equal to the access fees charged to a daily commuter railroad service for the portion of track used in West Virginia.
Currently, this would impact the MARC commuter operator in the eastern panhandle. The operator of this service is the Maryland Transit Administration and the track used belongs to CSX Transportation. CSX Transportation would receive a corporate tax credit in lieu of the payment MTA pays to them for the West Virginia portion of track.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-695,830 |
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 impact under the current contract (FY11) would be an access fee of $675,715 for 37,250 train miles in West Virginia or approximately $18.14 per train mile.
Based on the premise that the bill will be effective 7-1-11 and with a 3% increase, the impact is estimated to be 695,830 for FY12. Note, however, that this rate will increase each fiscal year.
Memorandum
If passed, West Virginia needs to have assurance from Maryland Transit Administration that the access fee they negotiate with CSX Transportation is the same in both Maryland and West Virginia.
This bill would help to assure continued service and access to West Virginia citizens of the MARC train service by helping the operator, MTA, with West Virginia based operating costs.
Person submitting Fiscal Note: Kathy Holtsclaw
Email Address: Kathy.J.Holtsclaw@wv.gov