FISCAL NOTE

Date Requested: January 10, 2018
Time Requested: 02:22 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1095 Introduced SB22
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Increases Revenue From Existing Sources



Fiscal Note Summary


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


    The stated purpose of this bill is to change the calculation of tax rates on wind-powered generation units to match those of other recently implemented power generating facilities.
    
    According to the provisions of this bill, after December 31, 2018, the taxable generating capacity of a generating unit utilizing a turbine powered primarily by wind will increase from twelve percent to forty percent of the official capacity of the unit. The actual operating capacity of wind power plants is closer to 30 percent in West Virginia due to normal alterations in wind flow. Passage of this bill will result in a $1.5 million increase in the General Revenue Fund in FY2019 and $3.6 million per year thereafter.
    
    Additional administrative costs incurred by the State Tax Department would be $2,000 in FY2019.
    



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 2,000 0
Personal Services 0 1,000 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,000 0
2. Estimated Total Revenues 0 1,500,000 3,600,000


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


    According to the provisions of this bill, after December 31, 2018, the taxable generating capacity of a generating unit utilizing a turbine powered primarily by wind will increase from twelve percent to forty percent of the official capacity of the unit. The actual operating capacity of wind power plants is closer to 30 percent in West Virginia due to normal alterations in wind flow. Passage of this bill will result in a $1.5 million increase in the General Revenue Fund in FY2019 and $3.6 million per year thereafter.
    
    Additional administrative costs incurred by the State Tax Department would be $2,000 in FY2019.
    
    



Memorandum


    The stated purpose of this bill is to change the calculation of tax rates on wind-powered generation units to match those of other recently implemented power generating facilities.
    
    There may be a bill title defect as the bill title does not state the bill has an internal effective date for this change.
    
    



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