FISCAL NOTE
Date Requested: January 22, 2019
Time Requested: 12:59 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2418 |
Introduced |
HB2574 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Medical School Fund
Sources of Revenue:
Special 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 Drinks Tax would result in the elimination of funding for the Medical School Fund. Passage of this bill would result in a loss of $14.7 million to the Medical School Fund in FY2020 and subsequent fiscal years.
The State Tax Department would be no longer administering this program resulting in cost savings of $110,000 in FY2020 and in subsequent fiscal years. The State Tax Department would incur $15,000 in costs in FY2019 to close out the tax.
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 |
15,000 |
-110,000 |
-110,000 |
| Personal Services |
0 |
-75,000 |
-75,000 |
| Current Expenses |
0 |
-35,000 |
-35,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
15,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-14,700,000 |
-14,700,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, elimination of the Soft Drinks Tax would result in the elimination of funding for the Medical School Fund. Passage of this bill would result in a loss of $14.7 million to the Medical School Fund in FY2020 and subsequent fiscal years.
The State Tax Department would be no longer administering this program resulting in cost savings of $110,000 in FY2020 and in subsequent fiscal years. The State Tax Department would incur $15,000 in costs in FY2019 to close out the tax.
Memorandum
The stated purpose of this bill is to repeal the soft drink tax.
This bill has no effective date.
The bill repeals the code section imposing the Soft Drink Excise Tax per W.Va. Code ยง11-19-2, but does not repeal sections 4 and 5 of this article related to affixing tax stamps and crowns.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov