FISCAL NOTE
Date Requested: January 15, 2018
Time Requested: 02:21 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1065 |
Introduced |
SB13 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
General Revenue Fund
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.
The stated purpose of this bill is to raise the legal age for purchase of tobacco, tobacco products, tobacco-derived products, alternative nicotine products and vapor products to twenty-one.
According to our interpretation, the proposed bill would raise the age at which individuals may legally purchase tobacco, tobacco products, tobacco-derived products, alternative nicotine products, and vapor products to 21 years. This change is expected to create some barrier to access for individuals between the ages of 18 and 21, resulting in a reduction in Tobacco Products Tax collections. However, it is unlikely the proposed bill would greatly affect consumption of such products among current tobacco and vapor product users between 18 to 21 years of age. Larger impacts on consumption behavior would be expected in the long term, as more youth may be discouraged to begin smoking when turning 18.
As the proposed bill does not have an internal effective date, it is assumed the bill would be effective 90 days from passage. Depending on timing, this would result in a minimal revenue loss for the remainder of FY2018 and an estimated loss of roughly $0.4 million in FY2019. It is anticipated that the proposed bill could lead to General Revenue Fund losses of up to $3.6 million in out years.
No additional administrative costs to the State Tax Department are anticipated.
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 |
-400,000 |
-3,600,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would raise the age at which individuals may legally purchase tobacco, tobacco products, tobacco-derived products, alternative nicotine products, and vapor products to 21 years. This change is expected to create some barrier to access for individuals between the ages of 18 and 21, resulting in a reduction in Tobacco Products Tax collections. However, it is unlikely the proposed bill would greatly affect consumption of such products among current tobacco and vapor product users between 18 to 21 years of age. Larger impacts on consumption behavior would be expected in the long term, as more youth may be discouraged to begin smoking when turning 18.
As the proposed bill does not have an internal effective date, it is assumed the bill would be effective 90 days from passage. Depending on timing, this would result in a minimal revenue loss for the remainder of FY2018 and an estimated loss of roughly $0.4 million in FY2019. It is anticipated that the proposed bill could lead to General Revenue Fund losses of up to $3.6 million in out years.
No additional administrative costs to the State Tax Department are anticipated.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov