FISCAL NOTE
Date Requested: January 20, 2026
Time Requested: 11:42 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1198 |
Introduced |
HB4445 |
|
|---|
| 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.
The stated purpose of this bill is to reduce the cost of exercising the 2nd Amendment constitutional right.
According to our interpretation, the proposed bill would create an exemption from consumer sales and services tax for all sales of small arms shooting accessories, cases and storage devices and shooting sports events. Due to the broad definition of “small arms shooting accessories” potentially subject to sales tax exemption, we are unable to readily quantify the revenue loss for that portion of the bill. Adding an exemption for “shooting sports events” which are defined as including all activities, both spectator and participatory, services, and sales, utilizing small arms at shooting ranges and facilities, both private and public professionals and amateurs, including leagues, associations , clubs, hobbyists, and all other practice shooting, and for “small arms cases and storage devices” would result in a revenue loss of $57,000 in FY 2027 and up to $137,000 in subsequent fiscal years. Loss of local sales tax in FY2027 is estimated be $4,700 and a loss of $11,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department are expected to be $1,100 in FY2026.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-57,000 |
-137,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create an exemption from consumer sales and services tax for all sales of small arms shooting accessories, cases and storage devices and shooting sports events. Due to the broad definition of “small arms shooting accessories” potentially subject to sales tax exemption, we are unable to readily quantify the revenue loss for that portion of the bill. Adding an exemption for “shooting sports events” which are defined as including all activities, both spectator and participatory, services, and sales, utilizing small arms at shooting ranges and facilities, both private and public professionals and amateurs, including leagues, associations , clubs, hobbyists, and all other practice shooting, and for “small arms cases and storage devices” would result in a revenue loss of $57,000 in FY 2027 and up to $137,000 in subsequent fiscal years. Loss of local sales tax in FY2027 is estimated be $4,700 and a loss of $11,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department are expected to be $1,100 in FY2026 for taxpayer education and instructional updates.
Memorandum
The stated purpose of this bill is to reduce the cost of exercising the 2nd Amendment constitutional right.
The addition of the phrase “and service tax” makes the section heading incorrect. The exemption referenced is an exemption from the sales tax for the sale of small arms and related items; the exemption is not for the sales tax.
The definition for “small arms shooting accessories” is a robust, but not exclusive, list of firearm industry terms as well as ambiguous terms that lack any definitions within this bill or citation to the definitions within an outside authority.
There is no requirement that the exempted accessories be used for the operation and maintenance of small arms and small arms ammunition in subsection (e), only that they are “normally used with the operation and maintenance of small arms and small arms ammunition.” Subsection (f) addresses the same issue by requiring that “small arms cases and storage devices” be “specifically designed to protect, store, secure, or transport small arms, small arms ammunition, and small arms shooting accessories.” It is unclear why subsection (e) should lack a similar requirement.
There is no internal effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov