FISCAL NOTE

Date Requested: February 26, 2020
Time Requested: 11:31 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2014 Comm. Sub. SB530
CBD Subject: Taxation


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.


    Per our interpretation, the purpose of this bill is to exempt from sales and service tax aircraft sold in this state and removed from the state within 60 days and provide conditions for the exemption.
    
    The proposed legislation would add an exemption from Consumer Sales Tax for aircraft sold in this state which are registered outside of the state as long as the aircraft is removed from this state within 60 days of purchase. There is no internal effective date. Based on our interpretation, the proposed legislation would decrease General Revenue Fund collections by an average of roughly $300,000 in FY2021 and subsequent fiscal years.
    
    Additional administrative costs incurred by the Tax Department would be $5,000 in FY2021 and $1,000 in subsequent fiscal
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 5,000 0
Personal Services 0 5,000 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 -300,000 -300,000


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


    The proposed legislation would add an exemption from Consumer Sales Tax for aircraft sold in this state which are registered outside of the state as long as the aircraft is removed from this state within 60 days of purchase. To be exempt, the sale must be evidenced by a Federal Aviation Authority Bill of Sale AC Form 8050-2 and must be registered outside this state by a Federal Aviation Authority Aircraft Registration AC Form 8050-1.There is no internal effective date Based on the assumption that the bill would be effective 90 days from passage, the proposed legislation would decrease General Revenue Fund collections by an average of roughly $300,000 in FY2021 and subsequent fiscal years.
    
    Additional administrative costs incurred by the Tax Department would be $5,000 in FY2021 and $1,000 in subsequent fiscal years.
    



Memorandum


    



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