FISCAL NOTE
Date Requested: January 12, 2022 Time Requested: 04:51 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1355 |
Introduced |
SB149 |
|
CBD Subject: |
|
---|
|
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 exempt sales of tangible personal property to safely store firearms, including, but not limited to, safes and trigger locks from the consumer sales tax.
According to our interpretation, the proposed bill would create an exemption from Consumer Sales and Use Tax for all sales of tangible personal property used to safely store firearms. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2022. Based on the assumption that the exemption covers safes and trigger locks only, passage of the proposed legislation would result in a loss in General Revenue collections of $46,000 in FY2023 and a loss of $50,000 in subsequent fiscal years.
Additional administrative cost incurred by the State Tax Department would be $5,000 in FY2022.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2022 Increase/Decrease (use"-") |
2023 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
5,000 |
0 |
0 |
Personal Services |
5,000 |
0 |
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 |
-46,000 |
-50,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create an exemption from Consumer Sales and Use Tax for all sales of tangible personal property used to safely store firearms. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2022. Based on the assumption that the exemption covers safes and trigger locks only, passage of the proposed legislation would result in a loss in General Revenue collections of $46,000 in FY2023 and a loss of $50,000 in subsequent fiscal years.
Additional administrative cost incurred by the State Tax Department would be $5,000 in FY2022.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov