FISCAL NOTE
Date Requested: February 09, 2024
Time Requested: 11:42 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3488 |
Introduced |
SB679 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General 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 regulate select plant-based derivatives, including hemp-derived cannabinoid products and regulation of kratom. The bill amends the short title; clarifies findings; defines terms; requires permits to manufacture, process, distribute, offer to sell, and sell regulated products; specifies regulatory authority in the Commissioner of Agriculture and the Alcohol Beverage Control Administration Commissioner; specifies funding requirements for nonintoxicating beer tax revenues; makes technical corrections; specifies application of the Administrative Procedures Act for certain contested cases; specifies application fees for certain permits; specifies requirements for business registration certificate, nexus, jurisdiction, and taxation relating to remote interstate sales and distribution; specifies maintenance of lists by the Commissioner of Agriculture of permittees, approved products and entities and person that cease to be permitted; specifies labeling requirements; requires age verification for certain sales; authorizes use of funds by the Commissioner of Agriculture and Alcohol Beverage Control Administration Commissioner; specifies application of Tax Commissioner’s fee; authorizes memoranda of understanding and information sharing between Tax Commissioner, Commissioner of Agriculture and Alcohol Beverage Control Administration Commissioner; specifies administrative sanctions; authorizes the Alcohol Beverage Control Administration Commissioner to enforce regulation of the product at the retail level; authorizes enforcement actions involving agents of the Alcohol Beverage Control Administration Commissioner and persons acting upon request direction or control of law-enforcement agencies; clarifies Alcohol Beverage Control Administration Commissioner’s authority over alcohol licensees selling kratom and hemp-derived cannabinoid products; specifies transfer of excess Alcohol Beverage Control Enforcement Fund monies; and specifies criminal penalties related to crimes relating to regulated products.
This bill clarifies language in the W. Va. Code, mostly in terms of technical corrections. There are no changes to the existing excise tax rate and fund distributions of Kratom, certain plant-based derivatives, and hemp-derived cannabinoid products. However, this bill imposes the West Virginia Use Tax on sellers, marketplace facilitators, and referrers. According to our interpretation, these minor changes would have minimal impact on revenue collection resulting from the passage of this bill.
Administrative costs incurred by the State Tax Division would be $20,000 in FY2024.
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 |
20,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
20,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill clarifies language in the W. Va. Code, mostly in terms of technical corrections. There are no changes to the existing excise tax rate and fund distributions of Kratom, certain plant-based derivatives, and hemp-derived cannabinoid products. However, this bill imposes the West Virginia Use Tax on sellers, marketplace facilitators, and referrers. According to our interpretation, these minor changes would have minimal impact on revenue collection resulting from the passage of this bill.
Administrative costs incurred by the State Tax Division would be $20,000 in FY2024.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov