FISCAL NOTE
Date Requested: February 13, 2026
Time Requested: 05:50 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4091 |
Introduced |
HB5522 |
|
|---|
| 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 provide an annual sales tax holiday for feminine hygiene products and diapers.
Passage of this bill would add a sales tax holiday excluding feminine hygiene products and diapers for all ages from Consumers Sales Tax. Based on our interpretation, passage of this bill would result in a loss to the General Revenue Fund collections of $35,000 in FY2027 and in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2027. Municipal sales tax would also have a minimal revenue loss in FY2027 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division are expected to be $1,100 in FY2027.
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 |
1,100 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,100 |
0 |
| 2. Estimated Total Revenues |
0 |
-35,000 |
-35,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would add a sales tax holiday excluding feminine hygiene products and diapers for all ages from Consumers Sales Tax. Based on our interpretation, passage of this bill would result in a loss to the General Revenue Fund collections of $35,000 in FY2027 and in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2027. Municipal sales tax would also have a minimal revenue loss in FY2027 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division are expected to be $1,100 in FY2027 for updating online publications, instructions and for taxpayer education.
Memorandum
The stated purpose of this bill is to provide an annual sales tax holiday for feminine hygiene products and diapers.
The definitions in the proposed bill are different from those used in the Streamlined Sales and Use Tax Agreement. Specifically, the bill does not define “feminine hygiene product” and “diapers” the same as those terms are defined in Appendix C, Part II of Article III, Section 327 of the Streamlined Sales and Use Tax Agreement, of which West Virginia is a signatory.
Person submitting Fiscal Note: Peter Shirley
Email Address: RADfiscal@wv.gov