FISCAL NOTE
FUND(S):
West Virginia Lottery Racetrack Table Games Fund and State Debt Reduction Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill reduces the tax on adjusted gross receipts derived from West Virginia Lottery racetrack table games from 35% to 25%. The table games tax is distributed to several sources, including the Lottery for administration of the program, purse funds at each track, development funds for thoroughbreds and greyhounds, racetrack counties and their municipalities, and municipalities where a table games licensee is located. Once those distributions are made, the remaining balance of the tax, currently 22% of adjusted gross receipts, is distributed as follows: 76% of the remainder to the state debt reduction fund, 4% of the remainder to pension funds for racetrack employees, 10% of the remainder to non racetrack counties, and the final 10% of the remainder to non racetrack municipalities.
The ten percent reduction in the tax would affect only the four remainder distributions listed above. Instead of sharing the remaining 22% of the tax, they would share the remaining 12% after tax after the reduction.
The bill also reduces the racetrack table games license fee from $2.5 million to $1 million. This fee is deposited directly into the Community Based Service Fund for the benefit of seniors. The fund would not be affected because the difference of $6 million in the licensing fee would be offset by directing racetrack purse funds to the Community Based Service Fund so that it is made whole.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
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 |
-13,627,493 |
-13,627,493 |
Explanation of above estimates (including long-range effect):
The above estimates assume the bill would be effective on July 1, 2013.
The reduction in table games adjusted gross receipts tax would decrease the amount of funds available for distribution to the state debt reduction fund by $13,627,493 annually. This is the only state fund affected, and therefore it is the only fund listed above.
The track pension plan would also see a reduction of $717,236, and non racetrack counties combined and non racetrack municipalities combined would each receive $1,793,091 less in funding from table games per year. These amounts are not reflected above since they are transfers outside of state funds.
Memorandum
Person submitting Fiscal Note: Kathy Lawson
Email Address: klawson@wvlottery.com