FISCAL NOTE
Date Requested: March 07, 2017
Time Requested: 02:19 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2958 |
Introduced |
SB533 |
|
|---|
| CBD Subject: |
Alcoholic Liquors and Beers, Taxation |
|---|
|
FUND(S):
Local Governments
Sources of Revenue:
Other Fund local governments
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 provide that no wine or liquor excise tax will be collected on purchases of wine or intoxicating liquors in the original sealed package for the purpose of resale, if the final purchase of the wine or intoxicating liquor is subject to the excise tax. The bill also provides that no liter tax will be collected on wine sold in the original sealed package for the purpose of resale, if the subsequent sale of the wine is subject to the liter tax. The bill also defines terms.
According to our interpretation, the proposed bill would clarify that the 5% local excise tax does not apply on wine and liquor purchased in the original sealed package for the purpose of resale so long as the excise tax would be applied at the final purchase. The proposed bill would have a minimal impact on local government revenues.
Additional administrative costs to the State Tax Department would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,000 |
0 |
| Personal Services |
0 |
1,000 |
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):
According to our interpretation, the proposed bill would clarify that the 5% local excise tax does not apply on wine and liquor purchased in the original sealed package for the purpose of resale so long as the excise tax would be applied at the final purchase. The proposed bill would have a minimal impact on local government revenues.
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov