FISCAL NOTE
Date Requested: February 17, 2026
Time Requested: 01:56 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3553 |
Introduced |
HB5672 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Ryan Brown Addiction Prevention and Recovery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New 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 collect a state excise tax against opioid sales calculated at one cent for 100 pills multiplied by the number of overdose deaths in the most recent year based on Health Department’s death certificates. The tax shall be used to fund addiction prevention and recovery from opioid use.
This bill would impose an excise tax of one cent multiplied by the number of overdose deaths in West Virginia on each 100 pills sold. The number of overdose deaths would be determined by the most recent available report published by the Department of Health’s Epidemiology Division. The tax would be imposed on every pharmaceutical manufacturer or distributor selling Schedule II drugs to licensed pharmacies in the state. The report would be provided by December 1st of each year, and the Tax Commissioner would determine the amount of tax and notify each pharmacy in the State of the appropriate amount of tax to assess. Tax revenues would be deposited into the Ryan Brown Addiction Prevention and Recovery Fund.
According to data provided by the Board of Pharmacy, there were 575 pharmacies and 1,729 distributors and manufacturers of opioids in West Virginia as of 2025. The most recent data from the Controlled Substances Monitoring Program reports 51.97 million individual opioid substances were dispensed in West Virginia in 2023. In 2025, the Centers for Disease Control reported 659 overdose deaths in West Virginia for the 12-month period ending in September 2025. According to our calculations, the revenue impact of this bill would be approximately $3.4 million per year upon implementation with annual variation due to change in variable tax.
Additional administrative costs to the State Tax Division would be $79,450 in FY2027 and $44,800 in subsequent fiscal years.
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 |
0 |
79,450 |
44,800 |
| Personal Services |
0 |
44,800 |
44,800 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
33,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
3,400,000 |
Explanation of above estimates (including long-range effect):
This bill would impose an excise tax of one cent multiplied by the number of overdose deaths in West Virginia on each 100 pills sold. The number of overdose deaths would be determined by the most recent available report published by the Department of Health’s Epidemiology Division. The tax would be imposed on every pharmaceutical manufacturer or distributor selling Schedule II drugs to licensed pharmacies in the state. The report would be provided by December 1st of each year, and the Tax Commissioner would determine the amount of tax and notify each pharmacy in the State of the appropriate amount of tax to assess. Tax revenues would be deposited into the Ryan Brown Addiction Prevention and Recovery Fund.
According to data provided by the Board of Pharmacy, there were 575 pharmacies and 1,729 distributors and manufacturers of opioids in West Virginia as of 2025. The most recent data from the Controlled Substances Monitoring Program reports 51.97 million individual opioid substances were dispensed in West Virginia in 2023. In 2025, the Centers for Disease Control reported 659 overdose deaths in West Virginia for the 12-month period ending in September 2025. According to our calculations, the revenue impact of this bill would be approximately $3.4 million per year upon implementation with annual variation due to change in variable tax.
Additional administrative costs to the State Tax Division would be $79,450 in FY2027 and $44,800 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to collect a state excise tax against opioid sales calculated at one cent for 100 pills multiplied by the number of overdose deaths in the most recent year based on Health Department’s death certificates. The tax shall be used to fund addiction prevention and recovery from opioid use.
This bill creates a new process whereby pharmacies collect this excise tax on the qualifying drugs. Presumably, the pharmacy will collect the excise tax from the manufacturers and distributors at the time of the purchase of the drugs by the pharmacy from the manufacturer or distributor. The process may prove awkward.
Given the amount of regulation imposed on Schedule II drugs, there may be unforeseen layers of bureaucracy and administration costs involved.
“Opioid” is not defined in any of the statutes referenced in the bill. There is no cross-reference to the definition of “opioid” elsewhere in the code.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov