FISCAL NOTE
Date Requested: January 25, 2019
Time Requested: 01:23 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2574 |
Introduced |
HB2684 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases 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 exempt “specie” from personal property assessments, consumer sales tax, personal income tax and corporate net income tax. The bill defines the term “specie.”
According to our interpretation, passage of this bill would exempt “specie” from personal property assessments, consumer sales tax, personal income tax, and corporate income tax. “Specie” is defined as a coin having gold or refined gold or silver bullion which is coined, stamped, or imprinted with its weight and purity based upon its metal content and it form. The effective date on the “specie” exemption for the assessment of personal property is on January 1, 2020, for consumer sales and service tax is on January 1, 2020, for personal income tax after December 31, 2019, and corporate net income tax after December 31, 2019.
The bill would have an impact in the following sources of tax revenue sources:
• Property Tax : Minimal loss to the State & local governments beginning in FY 2022,
• Consumer & Service Tax: $25,000 to $50,000 loss for FY 2021, and $50,000 to $100,000 loss in FY 2022 and subsequent fiscal years. Minimal loss to municipalities beginning in FY 2021,
• Personal Income Tax: Minimal loss beginning in FY2021, and
• Corporate Net Income Tax: Minimal loss beginning in FY 2021.
Additional administrative costs to the State Tax Department would be $1,000 in FY2020, $20,000 in FY2021, and $10,000 per year in subsequent fiscal years. These costs would be the result of changes to sales and income taxes. There would be no additional administrative costs to the State or local governments as a result of the Property Tax exemption.
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 |
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):
According to our interpretation, passage of this bill would exempt “specie” from personal property assessments, consumer sales tax, personal income tax, and corporate income tax. “Specie” is defined as a coin having gold or refined gold or silver bullion which is coined, stamped, or imprinted with its weight and purity based upon its metal content and it form. The effective date on the “specie” exemption for the assessment of personal property is on January 1, 2020, for consumer sales and service tax is on January 1, 2020, for personal income tax after December 31, 2019, and corporate net income tax after December 31, 2019.
The bill would have an impact in the following sources of tax revenue sources:
• Property Tax : Minimal loss to the State & local governments beginning in FY 2022,
• Consumer & Service Tax: $25,000 to $50,000 loss for FY 2021, and $50,000 to $100,000 loss in FY 2022 and subsequent fiscal years. Minimal loss to municipalities beginning in FY 2021,
• Personal Income Tax: Minimal loss beginning in FY2021, and
• Corporate Net Income Tax: Minimal loss beginning in FY 2021.
Additional administrative costs to the State Tax Department would be $1,000 in FY2020, $20,000 in FY2021, and $10,000 per year in subsequent fiscal years. These costs would be the result of changes to sales and income taxes. There would be no additional administrative costs to the State or local governments as a result of the Property Tax exemption.
Memorandum
The stated purpose of this bill is to exempt “specie” from personal property assessments, consumer sales tax, personal income tax and corporate net income tax. The bill defines the term “specie.”
Article X, Section 1 of the W. Va. Constitution provides that the Legislature may exempt property used for educational, literary, scientific, religious or charitable purposes. This bill would exempt
a certain kind of personal property, without regard to how it is used. However, if the value of the property is considered intangible, such property may already be exempt under the provisions of the W.Va. Const. Art X, sec. 1a and W.Va. Code §11-3-9(a)(23), which exempts “bank deposits and money.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov