FISCAL NOTE

Date Requested: March 09, 2017
Time Requested: 01:42 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
2989 Introduced HB2894
CBD Subject: Alcoholic Liquors and Beers, Taxation


FUND(S):

Municipal Tax Fund

Sources of Revenue:

Other Fund Municipal Tax Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


This bill is similar to SB 533. This bill purports to clarify that no wine municipal excise tax will be collected on purchases of wine in the original sealed package for the purpose of resale, until the final retail purchase of the wine which would be subject to the 5% municipal tax. The bill also provides that no wine liter tax will be collected on wine sold in the original sealed package for the purpose of resale, if the retail sale of the wine is subject to the liter tax. The bill adds the same terms to each code section in the bill: original package, original sealed package, seal and container.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 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 0 0


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


The WV State Tax Department administers and collects the municipal and wine liter tax and should be able to provide the costs and revenues.



Memorandum


This bill appears to address issues for the WV State Tax Department by clarifying the "taxpayer" for the municipal tax and wine liter tax. Technically, the use of the same definitions in all code sections may be better served by adding the definition to one code section and then referencing back to that code section in the other code sections utilizing those definitions. Also note the language added to W. Va. Code section 60-8-4 may not be needed since the wine liter tax is paid by the supplier only, and not paid by the retailer.



    Person submitting Fiscal Note: Anoop Bhasin,General Counsel on behalf of WVABCA
    Email Address: Anoop.K.Bhasin@wv.gov