FISCAL NOTE

Date Requested: February 04, 2019
Time Requested: 12:59 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1768 Introduced HB2829
CBD Subject:


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 terminate and expire termination of severance taxes on limestone and sandstone effective July 1, 2019.
    
    Based on our interpretation, the proposed bill is to eliminate the Severance Tax on limestone and sandstone effective July 1, 2019. No severance taxes would be collected on limestone and sandstone in FY 2020 and for each fiscal year thereafter.
    
    A review of the Severance Tax limestone and sandstone mining the past three fiscal years shown that the state collected an average of $1.2 million in revenue. If the bill is passed, it is estimated the General Revenue Fund will lose roughly $1.1 million in funding from the loss of Severance Tax on sandstone and limestone mining in FY2020 and $1.2 million for each fiscal year, thereafter.
    
    Additional administrative costs to the Tax Department would be $14,700 in FY2019.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 14,700 0 0
Personal Services 9,400 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 5,300 0 0
2. Estimated Total Revenues 0 -1,100,000 -1,200,000


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


    Based on our interpretation, the proposed bill is to eliminate the Severance Tax on limestone and sandstone effective July 1, 2019. No severance taxes would be collected on limestone and sandstone in FY 2020 and for each fiscal year thereafter.
    
    A review of the Severance Tax limestone and sandstone mining the past three fiscal years shown that the state collected an average of $1.2 million in revenue. If the bill is passed, it is estimated the General Revenue Fund will lose roughly $1.1 million in funding from the loss of Severance Tax on sandstone and limestone mining in FY2020 and $1.2 million for each fiscal year, thereafter.
    
    Additional administrative costs to the Tax Department would be $14,700 in FY2019
    



Memorandum


    



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