FISCAL NOTE

Date Requested: January 31, 2020
Time Requested: 09:45 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2436 Introduced HB4611
CBD Subject: Crime


FUND(S):

State Fire Marshall's Fees Fund, Veterans' Facilities Support Fund, Fire Protection Fund

Sources of Revenue:

Special 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 reduce fees for retail fireworks sales locations and to allow a fireworks retailer to combine and pay applicable fees in a single payment. The State Fire Marshall collects a fee for a Consumer Fireworks Certificate. The bill would reduce the fee for temporary retail sales locations from $500 to $300 and for permanent retail sales locations from $1,000 to $750. Information on the revenue loss associated with decrease in the fees for Consumer Fireworks Certificates should come from the State Fire Marshall’s Office. In addition to the Consumer Fireworks Certificate fees, there is a 12 percent fee on the retail sales of fireworks which is remitted to the State Tax Department. This bill would combine payments for the Fireworks Safety Fee and the fee for a Consumer Fireworks Certificate into a single payment. There may be administrative difficulties in the implementation of this proposed single payment because the date for remittance of the fee for a Consumer Fireworks Certificate is different from the due date for the remittance of the Fireworks Safety Fee.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 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 0 0


Explanation of above estimates (including long-range effect):


The State Fire Marshall collects a fee for a Consumer Fireworks Certificate. The bill would reduce the fee for temporary retail sales locations from $500 to $300 and for permanent retail sales locations from $1,000 to $750. Information on the revenue loss associated with decrease in the fees for Consumer Fireworks Certificates should come from the State Fire Marshall’s Office. In addition to the Consumer Fireworks Certificate fees, there is a 12 percent fee on the retail sales of fireworks which is remitted to the State Tax Department. This bill would combine payments for the Fireworks Safety Fee and the fee for a Consumer Fireworks Certificate into a single payment. There may be administrative difficulties in the implementation of this proposed single payment because the date for remittance of the fee for a Consumer Fireworks Certificate is different from the due date for the remittance of the Fireworks Safety Fee.



Memorandum


The stated purpose of this bill is to reduce fees for retail fireworks sales locations and to allow a fireworks retailer to combine and pay applicable fees in a single payment. There are several concerns with this bill. This bill would require the State Fire Marshall to establish, by Legislative Rule, “a procedure that allows a retailer to combine and pay all applicable fees in a single payment.” It is not clear what the phrase “all applicable fees” refers to. This bill would create some confusion regarding the duties of the Fire Marshall and the duties of the Tax Commissioner, which may result in difficulty in administering the proposed changes. The Fireworks Safety Fee is due 30 days after the end of the preceding month. The fee for the Consumer Fireworks Certificate is an annual fee due for the period of April 1 through March 31.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov