FISCAL NOTE

Date Requested: February 12, 2019
Time Requested: 01:11 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3201 Introduced SB582
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to exempt feminine hygiene products and diapers from state sales tax. Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY 2020 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2020 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2020. Additional administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2020.



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 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 -625,000 -1,500,000


Explanation of above estimates (including long-range effect):


Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY 2020 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2020 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2020. Additional administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2020.



Memorandum






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