FISCAL NOTE

Date Requested: January 10, 2018
Time Requested: 02:39 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1023 Introduced SB74
CBD Subject: Public Safety


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is to create the West Virginia Volunteer Fire and Rescue Act of 2018. The bill provides a short title. The bill makes findings and states a purpose. The bill establishes certification requirements for ambulance drivers, emergency medical technicians and paramedics. The bill provides a waiver of certain fees. The bill establishes a tax credit.
    
    For tax years beginning after January 1, 2018, volunteer firefighters, EMT’s, paramedics and drivers of volunteer fire departments and rescue squads who run or respond to twelve or more calls per calendar year are entitled to a $200 tax credit. Provision of this bill would result in a loss to General Revenue of $2.0 million per year beginning in FY2020.
    
    Additional administrative costs to the State Tax Department would be roughly $15,000 per year beginning in FY2020.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 15,000
Personal Services 0 0 10,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 5,000
2. Estimated Total Revenues 0 0 -2,700,000


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


    For tax years beginning after January 1, 2018, volunteer firefighters, EMT’s, paramedics and drivers of volunteer fire departments and rescue squads who run or respond to twelve or more calls per calendar year are entitled to a $200 tax credit. Provision of this bill would result in a loss to General Revenue of $2.0 million per year beginning in FY 2020.
    
    Additional administrative costs to the State Tax Department would be roughly $15,000 per year beginning in FY2020.
    
    



Memorandum


    The stated purpose of this bill is to create the West Virginia Volunteer Fire and Rescue Act of 2018. The bill provides a short title. The bill makes findings and states a purpose. The bill establishes certification requirements for ambulance drivers, emergency medical technicians and paramedics. The bill provides a waiver of certain fees. The bill establishes a tax credit.
    
    The credit is described in such a way as to make it appear to be a “refundable” tax credit. Only a small portion of property taxes (real property and personal property) collected inure to the state’s general revenue as it is a function of local collection. Thus, it would not appear to be a true credit against a tax paid such that the credit is given locally. Rather, the state (general revenue) is giving credit for taxes paid locally and not to the state.
    



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