Supplement: WV HB4626 | 2024 | Regular Session | Municipal League, WV
For additional supplements on West Virginia HB4626 please see the Bill Drafting List
Bill Title: Repeal of authority granted to municipalities to levy business and occupation or privilege tax
Status: 2024-01-11 - To House Finance [HB4626 Detail]
Download: West_Virginia-2024-HB4626-Municipal_League_WV.html
The stated purpose of this bill is to repeal W. Va. Code §8-13-5 relating to the eliminating the municipal business and occupation tax. The total budgeted amount for all cities for budget line "305 Business and Occupation Tax" for the 2023-2024 fiscal year is $225,060,919. Actual collection numbers are not available. Repeal of §8-13-5 would decrease existing municipal revenues by at least this budgeted amount.
The repeal of W. Va. Code §8-13-5 would result in a decrease to municipal revenues. Budgeted revenue from business and occupation tax is the largest municipal revenue source constituting 25% of budgeted revenue for all cities. For 54 cities, the business and occupation tax revenue accounts for 25% or more of their individual city budgets. 33 of those 54 are Class IV cities with populations of fewer than 2,000 people.
Person submitting Fiscal Note: Susan Economou
Email Address: seconomou@wvml.org
Bill Title: Repeal of authority granted to municipalities to levy business and occupation or privilege tax
Status: 2024-01-11 - To House Finance [HB4626 Detail]
Download: West_Virginia-2024-HB4626-Municipal_League_WV.html
FISCAL NOTE
| Date Requested: January 18, 2024 Time Requested: 05:01 PM |
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FUND(S):
Municipal Business & Occupation TaxSources of Revenue:
Other Fund Municipal fundLegislation creates:
Decreases Existing RevenueFiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to repeal W. Va. Code §8-13-5 relating to the eliminating the municipal business and occupation tax. The total budgeted amount for all cities for budget line "305 Business and Occupation Tax" for the 2023-2024 fiscal year is $225,060,919. Actual collection numbers are not available. Repeal of §8-13-5 would decrease existing municipal revenues by at least this budgeted amount.
Fiscal Note Detail
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2024 Increase/Decrease (use"-") |
2025 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):
Memorandum
The repeal of W. Va. Code §8-13-5 would result in a decrease to municipal revenues. Budgeted revenue from business and occupation tax is the largest municipal revenue source constituting 25% of budgeted revenue for all cities. For 54 cities, the business and occupation tax revenue accounts for 25% or more of their individual city budgets. 33 of those 54 are Class IV cities with populations of fewer than 2,000 people.
Person submitting Fiscal Note: Susan Economou
Email Address: seconomou@wvml.org
