FISCAL NOTE
Date Requested: February 05, 2026
Time Requested: 04:44 PM |
| Agency: |
Revenue, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3741 |
Introduced |
SB765 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Under current Code, liquor retail licensees in West Virginia must sell all liquor to both private clubs and individual customers at a minimum markup of 115 percent. Senate Bill 765 would allow liquor retail licensees to reduce this minimum markup to 85 percent on liquor which the retailer can demonstrate to the ABCA Commissioner has been stagnant in the licensee’s inventory for at least two years.
The General Revenue Fund’s Liquor Profit Transfers would be unaffected by this legislation, as the 32 percent wholesale markup the ABCA charges to liquor retail licensees was collected when the licensee originally purchased the product. Regardless of the markup at which the retailer ultimately sells the product (or does not sell it at all), this wholesale markup has been paid.
What would be affected are the 6 percent sales tax, which applies to beer, wine, and liquor; the 5 percent local tax for sales of wine and liquor; and any applicable municipal 1 percent sales tax. Although the number of liquor products which would be affected by SB 765 is anticipated to be minimal, to the extent that SB 765 generates additional sales, there would be a small amount of sales taxes generated for the State as well as counties and/or municipalities, depending on the specific retail licensee’s location.
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 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The General Revenue Fund’s Liquor Profit Transfers would be unaffected by this legislation, as the 32 percent wholesale markup the ABCA charges to liquor retail licensees was collected when the licensee originally purchased the product. Regardless of the markup at which the retailer ultimately sells the product (or does not sell it at all), this wholesale markup has been paid.
What would be affected are the 6 percent sales tax, which applies to beer, wine, and liquor; the 5 percent local tax for sales of wine and liquor; and any applicable municipal 1 percent sales tax. Although the number of liquor products which would be affected by SB 765 is anticipated to be minimal, to the extent that SB 765 generates additional sales, there would be a small amount of sales taxes generated for the State as well as counties and/or municipalities, depending on the specific retail licensee’s location.
Memorandum
Person submitting Fiscal Note: Peter Shirley
Email Address: peter.shirley@wv.gov