FISCAL NOTE
Date Requested: February 05, 2026
Time Requested: 04:44 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3741 |
Introduced |
SB765 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
General Revenue Fund, Local Governments
Sources of Revenue:
Other Fund General Fund and Local Governments
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to allow retail liquor outlets who purchased liquor which was not sold in two years to be able to discount liquor that has been documented as stagnant below the minimum markup. The retail liquor outlet benefits from the sale of older stagnant liquor and the state benefits with additional sales tax on liquor that might otherwise be destroyed.
Per our interpretation, the bill would amend W. Va. Code §60-3A, to allow retail licensees to sell, still salable stagnant liquor at less than the minimum mark-ups specified in subsection (e). Under current law retail liquor establishments are prohibited from selling liquor to private club/licensees at less than 115 percent of the retail cost or 110 percent of retail cost to the general public. The bill creates an exemption to the price floors for liquor products that have been “stagnant” in inventory which allows these products to be sold at reduced prices.
Per our interpretation, to the extent the bill generates additional sales, there could be a minimal increase in General Revenue collections. Liquor profit transfers received by the General Revenue Fund would not be impacted, as the 32 percent wholesale mark-up charged by the West Virginia Alcohol Beverage Control Administration to liquor licensees would already have been paid. Local Governments would potentially benefit from minimal increases in the 5 percent municipal tax on liquor and any applicable municipal sales tax.
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Per our interpretation, the bill would amend W. Va. Code §60-3A, to allow retail licensees to sell, still salable stagnant liquor at less than the minimum mark-ups specified in subsection (e). Under current law retail liquor establishments are prohibited from selling liquor to private club/licensees at less than 115 percent of the retail cost or 110 percent of retail cost to the general public. The bill creates an exemption to the price floors for liquor products that have been “stagnant” in inventory which allows these products to be sold at reduced prices.
Per our interpretation, to the extent the bill generates additional sales, there could be a minimal increase in General Revenue collections. Liquor profit transfers received by the General Revenue Fund would not be impacted, as the 32 percent wholesale mark-up charged by the West Virginia Alcohol Beverage Control Administration to liquor licensees would already have been paid. Local Governments would potentially benefit from minimal increases in the 5 percent municipal tax on liquor and any applicable municipal sales tax.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Peter Shirley
Email Address: radfiscal@wv.gov