FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 06:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1292 |
Introduced |
HB4184 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund municipal sales tax
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 safe gun storage devices from state sales tax.
According to our interpretation, the proposed bill would create an exemption from consumer sales and use tax for all sales of safe gun storage devices. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2026. Based on the assumption that the exemption covers gun safes only, the passage of the proposed legislation would create a loss in General Revenue collections of $66,000 in FY2027 and a loss of $72,000 in subsequent fiscal years. Loss of local sales tax in FY2027 would be $5,500 and a loss of $6,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division are expected to be $1,100 in FY2026 for taxpayer education and instructional updates.
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 |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-66,000 |
-72,000 |
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 for all sales of safe gun storage devices. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2026. Based on the assumption that the exemption covers gun safes only, the passage of the proposed legislation would create a loss in General Revenue collections of $66,000 in FY2027 and a loss of $72,000 in subsequent fiscal years. Loss of local sales tax in FY2027 would be $5,500 and a loss of $6,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division are expected to be $1,100 in FY2026 for taxpayer education and instructional updates.
Memorandum
The stated purpose of this bill is to exempt safe gun storage devices from state sales tax.
The language of the bill is broad and without definitions. The lack of definitions leaves room for ambiguity and may create administrative difficulties. The bill does not define ‘gun’ or ‘storage device’ or provide a cross reference to another statue. The effective date of July 1, 2026, may cause problems regarding required notice to retailers.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov