Date Requested: February 19, 2015
Time Requested: 03:28 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
3165 Introduced SB517
CBD Subject: Tax


FUND(S):

County governments

Sources of Revenue:

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 exempt from severance tax the privilege of producing coalbed methane gas beginning July 1, 2015.
    
    According to our interpretation, the bill will cost county economic development authorities and county commissions roughly $1.4 million per year. The revenue from the tax on coalbed methane is dedicated to the county economic development authorities or county commissions. Seventy-five percent of the revenue is allocated to the various counties in which coalbed methane is produced, and 25 percent is allocated to the low-producing and non-producing counties.
    
    Administrative costs to the Tax Department will be $60,000 in the current fiscal year due to the short timeframe for changes.



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 60,000 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 60,000 0 0
2. Estimated Total Revenues 0 -1,400,000 -1,400,000


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


    According to our interpretation, the bill will cost county economic development authorities and county commissions roughly $1.4 million per year. The revenue from the tax on coalbed methane is dedicated to the county economic development authorities or county commissions. Seventy-five percent of the revenue is allocated to the various counties in which coalbed methane is produced, and 25 percent is allocated to the low-producing and non-producing counties.
    
    Administrative costs to the Tax Department will be $60,000 in the current fiscal year due to the short timeframe for changes.
    
    



Memorandum


    



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