FISCAL NOTE
Date Requested: February 10, 2021
Time Requested: 04:09 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1277 |
Introduced |
HB2042 |
|
|---|
| CBD Subject: |
|
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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 sales of small arms and small arms ammunition from state sales and use tax.
According to our interpretation, the proposed bill would create an exemption from consumer sales and use tax on sales of small arms and small arms ammunition. “Small arms” are defined as any portable firearm, designed to be operated and carried by a single person, with a gun barrel internal diameter of .50 caliber or smaller. “Small arms ammunition” means any firearms ammunition designed for use in portable firearms with a gun barrel internal diameter of .50 caliber or smaller. As there is no effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease General Revenue Fund collections by $1.5 million in FY2022 and subsequent years.
Additional administrative costs incurred by the Tax Department would be $5,000 in FY2022 and $1,000 in subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
5,000 |
1,000 |
| Personal Services |
0 |
5,000 |
1,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-1,500,000 |
-1,500,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create an exemption from consumer sales and use tax on sales of small arms and small arms ammunition. “Small arms” are defined as any portable firearm, designed to be operated and carried by a single person, with a gun barrel internal diameter of .50 caliber or smaller. “Small arms ammunition” means any firearms ammunition designed for use in portable firearms with a gun barrel internal diameter of .50 caliber or smaller. As there is no effective date, the changes would become effective 90 days from passage. Based on our interpretation, the passage of the proposed legislation would decrease General Revenue Fund collections by $1.5 million in FY2022 and subsequent years.
Additional administrative costs incurred by the Tax Department would be $5,000 in FY2022 and $1,000 in subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov