FISCAL NOTE

Date Requested: February 10, 2021
Time Requested: 04:18 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1140 Introduced HB2082
CBD Subject: Taxation


FUND(S):

Medical School Fund

Sources of Revenue:

Other Fund Medical School Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to change the persons responsible for the taxes of soft drinks and soft drink syrups. According to our interpretation, passage of this bill would alter the manner in which the Soft Drinks Excise Tax is administered moving completely away from the requirement of indicia on products to the invoice method of payments. There should be no fiscal impact to the Medical School Fund. If passed, the legislation would be effective after June 30, 2021 Additional administrative costs incurred by the State Tax Department would be $15,000 in FY2021.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 15,000 0 0
Personal Services 0 5,000 5,000
Current Expenses 0 -5,000 -5,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 15,000 0 0
2. Estimated Total Revenues 0 0 0


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


According to our interpretation, passage of this bill would alter the manner in which the Soft Drinks Excise Tax is administered moving completely away from the requirement of indicia on products to the invoice method of payments. There should be no fiscal impact to the Medical School Fund. If passed, the legislation would be effective after June 30, 2021 Additional administrative costs incurred by the State Tax Department would be $15,000 in FY2021.  



Memorandum


The stated purpose of this bill is to change the persons responsible for the taxes on soft drinks and soft drink syrups. The bill makes “any distributor, dealer, subjobber, subjobber dealer, retailer, or any other person” that imports or causes bottled soft drinks or soft drink syrup to be imported in this state liable for the tax. The definitions in W.Va. Code §11-19-1 define “wholesale dealer”, “retail dealer”, and “distributor”. Some ambiguity as to who is liable remains. The bill changes the taxation of soft drinks to the invoice method. However, the bill also allows the designation that the total price includes the tax. This may make it difficult to administer and enforce the payment of the tax.



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