FISCAL NOTE
Date Requested: January 28, 2020
Time Requested: 02:58 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2588 |
Introduced |
SB622 |
|
|---|
| 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 authorize taxation of prescription opioids.
This bill would tax wholesale distributors (wholesalers; re-packagers; and manufactures) and mail order pharmacies that distribute or dispense opioids into the state. The tax rate would be one cent per dose (single pill, capsule, ampule, liquid, or other form of administration available as a single unit). The bill creates four new funds: The Addiction and Neonatal Addiction Care Fund, the Opioid Drug Taskforce Fund, the Drug Courts Fund, and the Opioid Education Fund. The revenue from this tax will be appropriated as follows: 60 percent to the Addiction and Neonatal Addiction Care fund; 15 percent to the Opioid Drug Taskforce; 15 percent to the Drug Courts fund and 10 percent to the Opioid Education Fund. The total revenue increase from the one cent tax per dosage would be roughly $600,000 in FY2021 and $1.4 million for FY2022 and subsequent fiscal years.
The bill would also impose a $500 registration per year for wholesale distributors and mail order pharmacies. The revenue increase from the registration fee would be estimated at $650,000 for FY2021 and subsequent years. The bill is silent as to where the fee is to be deposited and the uses to which the fee is put.
Additional administrative costs to the State Tax Department would be $115,000 in FY 2021 and $60,000 in subsequent years. Most of the costs associated with continued administration would be covered by the administrative fee provided for in WV law (11-10-27).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
111,000 |
60,000 |
| Personal Services |
0 |
60,000 |
60,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,000 |
0 |
| Other |
0 |
50,000 |
0 |
| 2. Estimated Total Revenues |
0 |
1,250,000 |
2,050,000 |
Explanation of above estimates (including long-range effect):
This bill would tax wholesale distributors (wholesalers; re-packagers; and manufactures) and mail order pharmacies that distribute or dispense opioids into the state. The tax rate would be one cent per dose (single pill, capsule, ampule, liquid, or other form of administration available as a single unit). The bill creates four new funds: The Addiction and Neonatal Addiction Care Fund, the Opioid Drug Taskforce Fund, the Drug Courts Fund, and the Opioid Education Fund. The revenue from this tax will be appropriated as follows: 60 percent to the Addiction and Neonatal Addiction Care fund; 15 percent to the Opioid Drug Taskforce; 15 percent to the Drug Courts fund and 10 percent to the Opioid Education Fund. The total revenue increase from the one cent tax per dosage would be roughly $600,000 in FY2021 and $1.4 million for FY2022 and subsequent fiscal years.
The bill would also impose a $500 registration per year for wholesale distributors and mail order pharmacies. The revenue increase from the registration fee would be estimated at $650,000 for FY2021 and subsequent years. The bill is silent as to where the fee is to be deposited and the uses to which the fee is put.
Additional administrative costs to the State Tax Department would be $115,000 in FY 2021 and $60,000 in subsequent years. Most of the costs associated with continued administration would be covered by the administrative fee provided for in WV law (11-10-27).
Memorandum
The stated purpose of this bill is to authorize taxation of prescription opioids.
The bill cannot be administered as written because the bill puts administration with the Department of Revenue, which lacks authority.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov