FISCAL NOTE
Date Requested: February 11, 2019
Time Requested: 11:37 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3012 |
Introduced |
HB2962 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 a four-day sales tax holiday during which certain items of clothing, school supplies, school instructional materials, laptop and tablet computers, and sports equipment are exempt from sales and use taxes.
The proposed bill would provide a sales tax exemption for certain items on first Sunday in August, the preceding Friday and Saturday, and the following Monday. The items eligible for the sales tax exemption during this period include the following:
• Clothing less than $125
• School Supplies less than $50
• Instructional Material less than $20
• Laptop and tablet computers less than $500
• Sports equipment less than $150
According to our interpretation, passage of the bill would reduce General Revenue Fund collections by roughly $4.0 million in FY2020 and each fiscal year thereafter.
Additional administrative costs incurred by the State Tax Department would be $2,000 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 |
2,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
2,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-4,000,000 |
-4,000,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would provide a sales tax exemption for certain items on first Sunday in August, the preceding Friday and Saturday, and the following Monday. The items eligible for the sales tax exemption during this period include the following:
• Clothing less than $125
• School Supplies less than $50
• Instructional Material less than $20
• Laptop and tablet computers less than $500
• Sports equipment less than $150
According to our interpretation, passage of the bill would reduce General Revenue Fund collections by roughly $4.0 million in FY2020 and each fiscal year thereafter.
Additional administrative costs incurred by the State Tax Department would be $2,000 in FY2020.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov