FISCAL NOTE

Date Requested: January 27, 2016
Time Requested: 11:31 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1951 Introduced SB356
CBD Subject: Taxation


FUND(S):

General Revenue Fund, State Road Fund

Sources of Revenue:

General Fund,Other Fund State Road 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 eliminate the consumer sale and service tax exemption on purchases of certain materials by a second party in construction or maintenance of a highway project for the 2016 fiscal year, and to resume the exemption for the 2017 fiscal year and thereafter.
    
    The proposed bill would temporarily suspend the annual transfer of Consumers Sales and Service Tax revenue to the State Road Fund on the basis of a formula tied to the value of contract purchases in FY2016. This one-time elimination of the transfer would be a revenue gain to the General Revenue Fund of approximately $9.0 million in FY2017 and an equivalent revenue loss to the State Road Fund. The transfer would resume beginning in FY2018. The single-year elimination of the General Revenue Fund transfer to the State Road Fund is included in the budget presented by the Governor in his estimates for FY2017.
    
    There would be no additional administrative costs incurred by the State Tax Department.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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 proposed bill would temporarily suspend the annual transfer of Consumers Sales and Service Tax revenue to the State Road Fund on the basis of a formula tied to the value of contract purchases in FY2016. This one-time elimination of the transfer would be a revenue gain to the General Revenue Fund of approximately $9.0 million in FY2017 and an equivalent revenue loss to the State Road Fund. The transfer would resume beginning in FY2018. The single-year elimination of the General Revenue Fund transfer to the State Road Fund is included in the budget presented by the Governor in his estimates for FY2017.
    
    There would be no additional administrative costs incurred by the State Tax Department.
    
    



Memorandum


    



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