Date Requested: January 29, 2015
Time Requested: 11:51 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1680 INTRODUCED HB2473
CBD Subject: REAL & PERSONAL PROPERTY


FUND(S):

General Revenue Fund, county governments

Sources of Revenue:

General Fund,Other Fund county governments

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 provide that the state excise tax on the privilege of transferring real property tax be used to reimburse counties for regional jail fees.
    
    As written, the bill would require the transfer the State Property Transfer Tax from the General Revenue Fund to counties for reimbursement of regional jail fees. Passage of this bill will result in a projected loss to the General Revenue Fund of approximately $13.4 million in FY2016 and a corresponding gain to counties.
    
    The State Tax Department would not incur any administrative costs associated with passage of this bill.
    



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 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 -13,400,000 0


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


    As written, the bill would require the transfer the State Property Transfer Tax from the General Revenue Fund to counties for reimbursement of regional jail fees. Passage of this bill will result in a projected loss to the General Revenue Fund of approximately $13.4 million in FY2016 and a corresponding gain to counties. According to the most recent West Virginia Regional Jail Authority’s Annual Report, counties paid approximately $48.3 million per year in per diem fees to house inmates per day in the State’s regional jails.
    The State Tax Department would not incur any administrative costs associated with passage of this bill.
    



Memorandum


    The stated purpose of this bill is to provide that the state excise tax on the privilege of transferring real property tax be used to reimburse counties for regional jail fees.
    
    There are no provisions in the bill detailing how to reimburse the respective counties. There is no provision for distribution of tax proceeds if they exceed the regional jail fees.
    
    
    
    
    



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