FISCAL NOTE

Date Requested: February 10, 2020
Time Requested: 12:51 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2916 Introduced SB745
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 create an exemption in the state sales and use tax for the rental or leasing of equipment among commonly owned companies. This exemption would apply to municipal sales and use taxes.
    
    According to our interpretation, the passage of bill would create an exemption of state sales and use tax for the rental or leasing of equipment among commonly owned companies. There is currently a similar exemption in W. Va. Code §11-15-9(a)(23). Since a similar exemption exists, passage of the bill will have minimal impact on revenues from State or municipal sales taxes.
    
    Additional administrative costs to the Tax Department would be $5,000 in FY2021.
     
    



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 5,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,000 0
2. Estimated Total Revenues 0 0 0


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


    According to our interpretation, the passage of bill would create an exemption of state sales and use tax for the rental or leasing of equipment among commonly owned companies. There is currently a similar exemption in W. Va. Code §11-15-9(a)(23). Since a similar exemption exists, passage of the bill will have minimal impact on revenues from State or municipal sales taxes.
    
    Additional administrative costs to the Tax Department would be $5,000 in FY2021.
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov