Date Requested: January 16, 2015
Time Requested: 10:41 AM
Agency: Natural Resources, Division of
CBD Number: Version: Bill Number: Resolution Number:
1752 Introduced HB2064
CBD Subject: WV Residents


FUND(S):

3265

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.


    In FY2014, the Division of Natural Resources collected $20,660,375.93 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,928,511.53 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,567,759.51 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $156,775.95.
    
    In addition, $1,844,713.92 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,319,339.39. A 10% reduction in this amount would result in a loss of $131,933.93.
    
    A total of $5,771,161.46 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,381,181.21 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $238,118.12.
    
    Subtracting the above amounts from the grand total revenue of $20,660,375.93 leaves a balance of $8,115,620.62. This represents the amount collected from day use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $5,275,153.40. If this were reduced by 10%, the loss in revenue would be $527,515.34.
    
    In FY2014, the Division of Natural Resources collected $20,660,375.93 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,928,511.53 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,567,759.51 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $156,775.95.
    
    In addition, $1,844,713.92 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,319,339.39. A 10% reduction in this amount would result in a loss of $131,933.93.
    
    A total of $5,771,161.46 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,381,181.21 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $238,118.12.
    
    Subtracting the above amounts from the grand total revenue of $20,660,375.93 leaves a balance of $8,115,620.62. This represents the amount collected from day use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $5,275,153.40. If this were reduced by 10%, the loss in revenue would be $527,515.34.
    
    
    
    
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -1,054,343 -1,054,343
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 -1,054,343 -1,054,343


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


    In FY2014, the Division of Natural Resources collected $20,660,375.93 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,928,511.53 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,567,759.51 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $156,775.95.
    
    In addition, $1,844,713.92 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,319,339.39. A 10% reduction in this amount would result in a loss of $131,933.93.
    
    A total of $5,771,161.46 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,381,181.21 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $238,118.12.
    
    Subtracting the above amounts from the grand total revenue of $20,660,375.93 leaves a balance of $8,115,620.62. This represents the amount collected from day use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $5,275,153.40. If this were reduced by 10%, the loss in revenue would be $527,515.34.
    
    
    
    
    
    
    
    



Memorandum


    If further information is needed regarding this fiscal note, please contact:
    
    Robert Beanblossom, District Administrator
    Division of Natural Resources
    Parks & Recreation Section
    324 4th Avenue
    South Charleston, WV 25303-1228
    
    304.558.2764 office
    304.389.5041 cell
    304.558.0077 fax
    
    



    Person submitting Fiscal Note: ROBERT BEANBLOSSOM
    Email Address: ROBERT.L.BEANBLOSSOM@WV.GOV