FISCAL NOTE
Date Requested: January 31, 2015 Time Requested: 11:32 AM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2656 |
Introduced |
HB2559 |
|
CBD Subject: |
Tax |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to raise the tax on cigarettes from 55 cents to $1.05.
There will be a revenue increase of $6.6 million to the General Revenue Fund in FY2015 due to the May 2015 effective date and a revenue increase in FY2016 and beyond of $79.5 million per year.
Additional administrative costs to the State Tax Department will be $60,000 in FY2015.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
60,000 |
0 |
0 |
Personal Services |
60,000 |
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 |
6,600,000 |
79,500,000 |
79,500,000 |
Explanation of above estimates (including long-range effect):
There will be a revenue increase of $6.6 million to the General Revenue Fund in FY2015 due to the May 2015 effective date. This is a $6.45 million increase from the excise tax and about a $150,000 increase in sales tax revenue. For the remaining years, there will be a total increase of $79.5 million per year to the General Revenue Fund, $77.4 million from the excise tax increase and $2.1 million in sales tax revenue.
Additional administrative costs to the State Tax Department will be $60,000 in FY2015.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov