FISCAL NOTE
Date Requested: January 10, 2018
Time Requested: 03:15 PM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1052 |
Introduced |
SB147 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
Legislative Services may wish to consult the WV State Tax Department regarding the dollar impact on revenues.
This proposal should decrease revenue to state and further litigation could result with its passage to further reduce revenue to the state.
SB 147 purports to exempt in-state farm wineries from paying a 5% tax to municipalities.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Please contact the WV State Tax Department on the fiscal impact of the loss revenue from these taxes.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
SB 147, as drafted, discriminates in favor of in-state farm wineries versus out-of-state wineries and direct shippers who pay the tax. This would appear to vi0late the U.S. v. Granholm decision and other federal and state law.
If passed, litigation could ensue to exempt all like situated parties from this tax.
Perhaps an alternate method to assist farm wineries would be grants issued by the Agriculture Department in lieu of tax exemptions that may not pass judicial muster.
SB 147, as drafted, is problematic.
Person submitting Fiscal Note: Anoop Bhasin on WVABCA's behalf
Email Address: Anoop.K.Bhasin@wv.gov