FISCAL NOTE

Date Requested: February 12, 2019
Time Requested: 01:09 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3213 Introduced HB3126
CBD Subject:


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 provide an exemption from the consumer sales and service tax for purchases of certain services and tangible personal property sold for the repair, remodeling and maintenance of aircraft with an empty weight of 13,500 pounds or greater; define terms; specify a method for claiming exemption; authorize emergency rules and promulgation of legislative rules; and establish the effective date of the section. The proposed bill would exempt sales and service tax on repair, remodeling and maintenance services for aircraft with an empty weight of 13,500 pounds or greater. The proposed exemption is very similar to an existing exemption found in Section 11-15-9p of the West Virginia Code. Based on our interpretation, the proposed bill would result in a minimal loss of sales tax revenue for FY2020 and each year thereafter. Administrative costs to the State Tax Department would be $1,000 for FY2020 and each year thereafter. 



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,000 1,000
Personal Services 0 1,000 1,000
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 exempt sales and service tax on repair, remodeling and maintenance services for aircraft with an empty weight of 13,500 pounds or greater. The proposed exemption is very similar to an existing exemption found in Section 11-15-9p of the West Virginia Code. Based on our interpretation, the proposed bill would result in a minimal loss of sales tax revenue for FY2020 and each year thereafter Administrative costs to the State Tax Department would be $1,000 for FY2020 and each year thereafter.



Memorandum






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