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 change the termination date for the Neighborhood Investment Program from July 1, 2011 to July 1, 2016, to prevent board members affiliated with applicants from discussing or voting on proposals put forth by those applicants, to increase the amount of total aggregate tax credit certified each year from $2 million to $3 million and to increase the amount of total aggregate tax credit allowed each year from $2.5 million to $3 million. As written, passage of this bill would extend the termination date of the Neighborhood Investment Program and clarify a possible inconsistency. The bill proposes to establish the “total maximum aggregate tax credit certified” in any State fiscal year and the “amount of tax credits” allowed in any State fiscal year as equal amounts. The “total maximum aggregate tax credit certified” would be changed from $2 million to $3 million and the “amount of tax credits” allowed would be changed from $2.5 million to $3 million. According to our interpretation, passage of this bill would reduce the General Revenue Fund by $0.5 million per year. There would be no additional administrative costs to the State Tax Department associated with passage of the bill. However, the Development Office may incur additional administrative costs due to pass of this bill.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2011 Increase/Decrease (use"-")	2012 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	-500,000	-500,000

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

Passage of this bill would extend the termination date of the Neighborhood Investment Program and clarify a possible inconsistency. The bill proposes to establish the “total maximum aggregate tax credit certified” in any State fiscal year and the “amount of tax credits” allowed in any State fiscal year as equal amounts. The “total maximum aggregate tax credit certified” would be changed from $2 million to $3 million and the “amount of tax credits” allowed would be changed from $2.5 million to $3 million. According to our interpretation, passage of this bill would reduce the General Revenue Fund by $0.5 million per year. There would be no additional administrative costs to the State Tax Department associated with passage of the bill. However, the Development Office may incur additional administrative costs due to pass of this bill.

Memorandum

The stated purpose of this bill is to change the termination date for the Neighborhood Investment Program from July 1, 2011 to July 1, 2016, to prevent board members affiliated with applicants from discussing or voting on proposals put forth by those applicants, to increase the amount of total aggregate tax credit certified each year from $2 million to $3 million and to increase the amount of total aggregate tax credit allowed each year from $2.5 million to $3 million. As indicated in the bill’s stated purpose above, a part of the bill apparently was meant “to prevent board members affiliated with applicants from discussing or voting on proposals put forth by those applicants.” Using the strikethrough (deletion) and underlining (addition) conventions of the bill the pertinent statement is as follows: In the event that If an applicant is directly or indirectly affiliated with one or more board members, those members and may not discuss the proposals with the board, but may not have a vote when that project is considered for final approval or disapproval. The indicated changes may not have the intended result as indicated in the stated purpose of the bill.

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