FISCAL NOTE
Date Requested: February 02, 2023
Time Requested: 04:01 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3327 |
Introduced |
HB3231 |
|
|---|
| 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 from sales tax the purchase of solar energy equipment and installation.
According to our interpretation there would be an estimated loss to the General Revenue Fund of roughly $300,000 in FY2024 and $330,000 in years thereafter based on current sales of such products and their installation costs. The sales tax loss would grow with further development of this activity.
Additional administrative costs to the State would be $500 in FY2023.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
500 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
500 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-300,000 |
-330,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation there would be an estimated loss to the General Revenue Fund of roughly $300,000 in FY2024 and $330,000 in years thereafter based on current sales of such products and their installation costs. The sales tax loss would grow with further development of this activity.
Additional administrative costs to the State would be $500 in FY2023.
Memorandum
The stated purpose of this bill is to exempt from sales tax the purchase of solar energy equipment and installation.
The bill does not define the term "solar energy equipment." The term itself is overly broad and could arguably apply to any solar-powered device such as a radio or pocket calculator. It does not distinguish between equipment designed for providing energy for a single residence and equipment designed for large-scale commercial production of energy for resale. It could also be extended to include the entire electrical system of a home, including wiring, switches, circuit breaker boxes, etc., if the term is construed to apply to residential use.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov