FISCAL NOTE
Date Requested: March 03, 2018
Time Requested: 10:41 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1704 |
Comm. Sub. |
SB275 |
|
|---|
| CBD Subject: |
Alcoholic Liquors and Beers, Taxation |
|---|
|
FUND(S):
Local governments
Sources of Revenue:
Other Fund local governments
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The presumed purpose of this bill is to require the Tax Commissioner to make available, upon written request, records related to the amount of taxes collected on purchases of intoxicating liquors to a municipality or county commission wherein the taxes are collected and to alter boundaries for the purpose of the local tax on wine and liquor.
According to our interpretation, the proposed bill would require the Tax Commissioner to make available records related to the local tax on wine and intoxicating liquors, upon written request by a county commission, to the authorized agent of that county. Further, the proposed bill would extend access to these records to the authorized agent of a municipality (or a municipality’s governing body) upon written request by the municipality. While similar access to records is currently provided to municipalities in current Law, the proposed bill specifically identifies this tax and the information that would be available to municipalities.
Based on our understanding, the bill would also alter the statutory boundaries used for remitting proceeds of the local tax on wine and liquor. Current Law provides that proceeds resulting from any applicable sales within one mile of the corporate limits of any municipality be remitted to the municipality. Effective July 1, 2018, the proposed bill would dedicate only those proceeds resulting from sales within municipal borders to municipalities and those resulting from sales outside municipal borders to the county. This will generally result in some revenue gains for county governments and some revenue losses for municipal governments. The magnitude of this revenue shift could be significant for some jurisdictions relative to municipal budgets.
Additional administrative costs incurred by the State Tax Department are expected to be $95,000 in FY2018 and $35,000 in FY2019.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
95,000 |
35,000 |
0 |
| Personal Services |
0 |
35,000 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
95,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would require the Tax Commissioner to make available records related to the local tax on wine and intoxicating liquors, upon written request by a county commission, to the authorized agent of that county. Further, the proposed bill would extend access to these records to the authorized agent of a municipality (or a municipality’s governing body) upon written request by the municipality. While similar access to records is currently provided to municipalities in current Law, the proposed bill specifically identifies this tax and the information that would be available to municipalities.
Based on our understanding, the bill would also alter the statutory boundaries used for remitting proceeds of the local tax on wine and liquor. Current Law provides that proceeds resulting from any applicable sales within one mile of the corporate limits of any municipality be remitted to the municipality. Effective July 1, 2018, the proposed bill would dedicate only those proceeds resulting from sales within municipal borders to municipalities and those resulting from sales outside municipal borders to the county. This will generally result in some revenue gains for county governments and some revenue losses for municipal governments. The magnitude of this revenue shift could be significant for some jurisdictions relative to municipal budgets.
Additional administrative costs incurred by the State Tax Department are expected to be $95,000 in FY2018 and $35,000 in FY2019.
Memorandum
The presumed purpose of this bill is to require the Tax Commissioner to make available, upon written request, records related to the amount of taxes collected on purchases of intoxicating liquors to a municipality or county commission wherein the taxes are collected and to alter boundaries for the purpose of the local tax on wine and liquor.
The effective date of July 1, 2018 will be difficult, if not impossible, to meet as it does not provide much time to make necessary changes to the zip (code) + 4 database and notify collectors of the changed tax.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov