FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 07:31 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1413 |
Introduced |
SB117 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Neighborhood Assistance and Rejuvenation Compact Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Increases Existing Expenses, Creates New Fund: Neighborhood Assistance and Rejuvenation Compact Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to create a program to reward citizens for information on drug trafficking; establish that the fund is funded by an excise tax on opioid antagonists, opioid antagonist kits, and test strips; provide that the program is run by the State Police and the Secretary of Homeland Security; establish requirements for the program; and provide for rulemaking.
This bill would impose a one cent tax on each purchase of an opioid antagonist, antagonist kit, or test strip used to test for opioids in addition to the existing state sales tax of six percent. This bill would create a new special revenue fund known as the Neighborhood Assistance and Rejuvenation Compact Fund, which would consist of monies collected by the additional excise tax. This fund would be used to pay rewards to any person who assists law enforcement in preventing narcotics trafficking. According to the most recent data provided by the Centers for Disease Control, West Virginia had the highest per capita rate of overdose death in the United States, through 2023. According to our interpretation, because some opioid antagonists are by prescription, and others are over the counter, we cannot access reliable sales data about the purchase of such products. Additionally, the confidentiality of opioid users who are receiving addiction treatment prevents us from accessing this type of data. Lastly, the ambiguity of certain definitions within the bill would create difficulties in determining the actual level of tax for some products. Therefore, we cannot reasonably estimate the revenue impact from the passage of this bill.
Administrative costs incurred by the State Tax Division would be $84,970 in FY2027 and $44,820 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
84,970 |
44,820 |
| Personal Services |
0 |
44,820 |
44,820 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
38,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would impose a one cent tax on each purchase of an opioid antagonist, antagonist kit, or test strip used to test for opioids in addition to the existing state sales tax of six percent. This bill would create a new special revenue fund known as the Neighborhood Assistance and Rejuvenation Compact Fund, which would consist of monies collected by the additional excise tax. This fund would be used to pay rewards to any person who assists law enforcement in preventing narcotics trafficking. According to the most recent data provided by the Centers for Disease Control, West Virginia had the highest per capita rate of overdose death in the United States, through 2023. According to our interpretation, because some opioid antagonists are by prescription, and others are over the counter, we cannot access reliable sales data about the purchase of such products. Additionally, the confidentiality of opioid users who are receiving addiction treatment prevents us from accessing this type of data. Lastly, the ambiguity of certain definitions within the bill would create difficulties in determining the actual level of tax for some products. Therefore, we cannot reasonably estimate the revenue impact from the passage of this bill.
Administrative costs incurred by the State Tax Division would be $84,970 in FY2027 and $44,820 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to create a program to reward citizens for information on drug trafficking; establish that the fund is funded by an excise tax on opioid antagonists, opioid antagonist kits, and test strips; provide that the program is run by the State Police and the Secretary of Homeland Security; establish requirements for the program; and provide for rulemaking.
The excise tax imposed on the sale of opioid antagonists and test strips is in addition to the sales and use tax and is levied at the rate of “one cent on each purchase of an opioid antagonist, an opioid antagonist kit, or test strips used to test for opioids.” The bill title states that the excise tax is on “opioid antagonists and test strips,” and does not mention that the tax also applies to an “opioid antagonist kit.” This may constitute a title defect.
Clarification, either in the bill or by rule, will be needed to determine whether the excise tax applies to each product sold in a single transaction, or to each sale involving multiple products. For example, if a single purchase consists of six opioid antagonists and two test strips, is the total excise tax on that transaction one cent or eight cents? This matters because the bill makes the excise tax “in addition to the sales tax . . . and the use tax,” when both of those taxes are imposed as a percentage of the sale price while the excise tax in the bill is imposed on a per sale basis.
This tax-focused portion of the bill does not provide any authority for the Tax Commissioner to promulgate needed rules and does not contain an internal effective date
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov