FISCAL NOTE
Date Requested: May 17, 2016
Time Requested: 12:44 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4008 |
Introduced |
SB1004 |
|
|---|
| CBD Subject: |
Governor -- Bills Requested By, Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to increase the rate of the consumer sales and service tax and the rate of the state use tax. These increased rates will take effect on July 1, 2016.
Based on our interpretation, the proposed bill would result in an increase of Consumers Sales and Service Tax and Use Tax revenues of approximately $196 million in FY2017 and $214.0 million for each year thereafter. These additional collections would benefit the General Revenue Fund. It should be noted that the revenue estimate does not include relevant increases in tax collections from Economic Opportunity Development Districts or municipal governments imposing sales tax.
Additional administrative costs incurred by the State Tax Department are expected to be $12,500 for the remainder of FY2016. No additional costs are expected for subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
12,500 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
12,500 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
196,000,000 |
214,000,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the proposed bill would result in an increase of Consumers Sales and Service Tax and Use Tax revenues of approximately $196 million in FY2017 and $214.0 million for each year thereafter. These additional collections would benefit the General Revenue Fund. It should be noted that the revenue estimate does not include relevant increases in tax collections from Economic Opportunity Development Districts or municipal governments imposing sales tax.
Additional administrative costs incurred by the State Tax Department are expected to be $12,500 for the remainder of FY2016. No additional costs are expected for subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov