FISCAL NOTE
Date Requested: January 29, 2024
Time Requested: 03:05 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3244 |
Introduced |
HB5261 |
|
|---|
| 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 expand the definition of small arms to include the receiver or frame for purposes of taxation.
This bill expands the definition of “small arms” to include “the receiver or frame of the firearm”. This may be interpreted to mean that the receiver or frame of a firearm may meet the definition of “small arms” and be exempt from the sales tax even if it is sold separately and not as part of an assembled firearm. The revenue loss would not be substantial.
Administrative costs incurred by the State Tax Department are expected to be $5,000 in FY2025.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
5,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill expands the definition of “small arms” to include “the receiver or frame of the firearm”. This may be interpreted to mean that the receiver or frame of a firearm may meet the definition of “small arms” and be exempt from the sales tax even if it is sold separately and not as part of an assembled firearm. The revenue loss would not be substantial.
Administrative costs incurred by the State Tax Department are expected to be $5,000 in FY2025.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov