FISCAL NOTE
Date Requested: March 17, 2025
Time Requested: 04:37 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3883 |
Introduced |
HB3419 |
|
|---|
| CBD Subject: |
Counties; Taxation |
|---|
|
FUND(S):
Local Sales Tax and Excise Tax Administration Fund
Sources of Revenue:
Other Fund Local Sales Tax and Excise Tax Administration Fund
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to authorize county commissions to impose an emergency medical services tax.
Per our interpretation, the bill would authorize counties to impose an emergency medical services sales tax at a rate of up to one quarter of one percent. The tax is in addition to the sales taxes already implemented in the W.Va. Code. The funds generated by this tax may only be used to fund county emergency medical services. According to the provisions of the bill, any county implementing a medical emergency services sales tax must notify the Tax Commissioner, State Auditor, and State Treasurer at least 180 days before the effective date of the tax.
According to our interpretation, if all counties choose to participate and imposed the maximum rate of tax, the emergency medical services sales tax would generate roughly $80 million per year.
Additional administrative costs incurred by the State Tax Department would be $45,650 in FY2026 and $47,500 in subsequent fiscal years. Such costs would be paid for by the fee for services provided for in this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
46,650 |
47,500 |
| Personal Services |
0 |
5,500 |
47,500 |
| 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):
Per our interpretation, the bill would authorize counties to impose an emergency medical services sales tax at a rate of up to one quarter of one percent. The tax is in addition to the sales taxes already implemented in the W.Va. Code. The funds generated by this tax may only be used to fund county emergency medical services. According to the provisions of the bill, any county implementing a medical emergency services sales tax must notify the Tax Commissioner, State Auditor, and State Treasurer at least 180 days before the effective date of the tax.
According to our interpretation, if all counties choose to participate and imposed the maximum rate of tax, the emergency medical services sales tax would generate roughly $80 million per year.
Additional administrative costs incurred by the State Tax Department would be $45,650 in FY2026 and $47,500 in subsequent fiscal years. Such costs would be paid for by the fee for services provided for in this bill.
Memorandum
The stated purpose of this bill is to authorize county commissions to impose an emergency medical services tax.
The bill uses the same format and much of the language of W.Va. Code §§7-27-28 through 33, which regard the county transportation tax. This bill includes references to the transportation tax where it should reference the emergency services tax it intends to authorize. The references to the county transportation tax are in §7-27-46(c) and §7-27-50.
Furthermore, this bill only authorizes a sales tax and not a use tax which differs from the county transportation tax this bill is modeled after. It is unclear if such an omission was intentional, and if so, what purpose omitting a use tax serves.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov