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