FISCAL NOTE
Date Requested: January 21, 2020
Time Requested: 12:36 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2353 |
Introduced |
SB538 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Decreases 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 repeal the soft drink tax.
According to our interpretation of this bill, elimination of the Soft Drink Tax would result in the elimination of funding for the Medical School Fund. Passage of this bill would result in a loss of $13.8 million to the Medical School Fund in FY2021 and subsequent fiscal years.
The State Tax Department would be no longer administering the program resulting in cost savings of $100,000 in FY2021 and in subsequent fiscal years. The State Tax Department would incur $15,000 in costs in FY2020 to close out the tax.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
15,000 |
-100,000 |
-100,000 |
| Personal Services |
0 |
-75,000 |
-75,000 |
| Current Expenses |
0 |
-25,000 |
-25,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
15,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-13,800,000 |
-13,800,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, elimination of the Soft Drink Tax would result in the elimination of funding for the Medical School Fund. Passage of this bill would result in a loss of $13.8 million to the Medical School Fund in FY2021 and subsequent fiscal years.
The State Tax Department would be no longer administering the program resulting in cost savings of $100,000 in FY2021 and in subsequent fiscal years. The State Tax Department would incur $15,000 in costs in FY2020 to close out the tax.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov