FISCAL NOTE
Date Requested: February 13, 2018
Time Requested: 01:07 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2244 |
Introduced |
HB4536 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, municipal funds
Sources of Revenue:
General Fund municipalities
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt feminine hygiene products and diapers from state sales tax.
Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY2019 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2019 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2019.
Additional administrative costs incurred by the State Tax Department are expected to be $1,000 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 |
1,000 |
0 |
| Personal Services |
0 |
1,000 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-625,000 |
-1,500,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY2019 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2019 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2019.
Additional administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2019.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov