Supplement: WV HB4705 | 2024 | Regular Session | Highways, Division of
For additional supplements on West Virginia HB4705 please see the Bill Drafting List
Bill Title: Relating to the consumers sales and service tax and returning the refundable exemption for sales of construction and maintenance materials acquired by a second party for use in Division of Highways projects
Status: 2024-02-22 - To House Finance [HB4705 Detail]
Download: West_Virginia-2024-HB4705-Highways_Division_of.html
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. There would be no additional costs to the DOH if this bill passes. Upon passage of the bill, the DOH would be refunded for sales tax we are paying through agreements with contractors.
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. There would be no additional costs to the DOH if this bill passes. Upon passage of the bill, the DOH would be refunded for sales tax we are paying through agreements with contractors.
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. This contents of this bill were already in place until 2018, with the last reimbursement from the Tax Department being in 2017 in the amount of $11.3 million. As a State agency, the DOH is exempt from paying sale tax. However, for materials used on road construction or maintenance projects obtained through contractor agreements, there is sales tax for materials used. This bill allows for the reimbursement of this tax to be deposited back into the State Road Fund. The amount will vary from year to year, based on the amount of work contracted. With an increase in expenditures due to the Roads to Prosperity Program as well as the IIJA, the estimated refund will be higher than the previously reimbursed amounts. This bill would essentially reinstate measures that were already in place prior to 2018.
Person submitting Fiscal Note: Jonathan W Schaffer
Email Address: Jonathan.w.schaffer@wv.gov
Bill Title: Relating to the consumers sales and service tax and returning the refundable exemption for sales of construction and maintenance materials acquired by a second party for use in Division of Highways projects
Status: 2024-02-22 - To House Finance [HB4705 Detail]
Download: West_Virginia-2024-HB4705-Highways_Division_of.html
FISCAL NOTE
| Date Requested: January 15, 2024 Time Requested: 04:06 PM |
| |||||||||||||||
FUND(S):
State Road FundSources of Revenue:
Special FundLegislation creates:
Creates New RevenueFiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. There would be no additional costs to the DOH if this bill passes. Upon passage of the bill, the DOH would be refunded for sales tax we are paying through agreements with contractors.
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 | 12,500,000 | 25,000,000 | 25,000,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. There would be no additional costs to the DOH if this bill passes. Upon passage of the bill, the DOH would be refunded for sales tax we are paying through agreements with contractors.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. This contents of this bill were already in place until 2018, with the last reimbursement from the Tax Department being in 2017 in the amount of $11.3 million. As a State agency, the DOH is exempt from paying sale tax. However, for materials used on road construction or maintenance projects obtained through contractor agreements, there is sales tax for materials used. This bill allows for the reimbursement of this tax to be deposited back into the State Road Fund. The amount will vary from year to year, based on the amount of work contracted. With an increase in expenditures due to the Roads to Prosperity Program as well as the IIJA, the estimated refund will be higher than the previously reimbursed amounts. This bill would essentially reinstate measures that were already in place prior to 2018.
Person submitting Fiscal Note: Jonathan W Schaffer
Email Address: Jonathan.w.schaffer@wv.gov
