FISCAL NOTE

Date Requested: February 08, 2016
Time Requested: 01:40 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1935 Introduced HB4440
CBD Subject: Economic Development, Energy


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund,Other Fund local property tax

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 allow surface mining operations to extinguish their permit bond obligations if they donate the reclaimed or partially-reclaimed land to an economic development authority and to provide for proper tax levy classification when reclaimed or partially-reclaimed mining lands are leased for agriculture.
    
    The State Tax Department cannot determine the revenue loss associated with this bill. We have no information on how much land is reclaimed or partially reclaimed from surface mining. The appraised value of this land is not expected to be overly significant. However, changing the tax classification to Class II would reduce revenues, mainly in those counties with reclaimed mine sites.
    
    There would be no additional costs to the State Tax Department. Additional administrative costs to the counties would be minimal.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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 0 0


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


    The State Tax Department cannot determine the revenue loss associated with this bill. We have no information on how much land is reclaimed or partially reclaimed from surface mining. The appraised value of this land is not expected to be overly significant. However, changing the tax classification to Class II would reduce revenues, mainly in those counties with reclaimed mine sites.
    
    There would be no additional costs to the State Tax Department. Additional administrative costs to the counties would be minimal.
    



Memorandum


    The stated purpose of this bill is to allow surface mining operations to extinguish their permit bond obligations if they donate the reclaimed or partially-reclaimed land to an economic development authority and to provide for proper tax levy classification when reclaimed or partially-reclaimed mining lands are leased for agriculture.
    
    The bill title is misleading. The bill has no requirement that the strip mine land be partially reclaimed before the bond obligations are dissolved. The current language of the Code already classifies farm land on reclaimed mine lands for the farmer or bona fide tenants.
    
    
    
    



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