FISCAL NOTE

Date Requested: March 03, 2021
Time Requested: 05:19 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2589 Introduced SB539
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Increases Revenue From Existing Sources, 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 remove the tax exemption for aircraft sold in the state that is removed within 60 days of purchase. According to our interpretation, passage of this bill would remove the exemption from Consumer Sales and Use tax for aircraft sold in West Virginia that are registered outside of this state which are removed from West Virginia within 60 days of purchase. There is no internal effective date; therefore, if passed, the effective date would be 90 days from passage. Based on our interpretation, the proposed legislation would increase General Revenue Fund collections by roughly $0.3 million in the first full year of enactment. Additional administrative costs incurred by the Tax Department would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
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 0 300,000 300,000


Explanation of above estimates (including long-range effect):


According to our interpretation, passage of this bill would remove the exemption from Consumer Sales and Use tax for aircraft sold in West Virginia that are registered outside of this state which are removed from West Virginia within 60 days of purchase. There is no internal effective date; therefore, if passed, the effective date would be 90 days from passage. Based on our interpretation, the proposed legislation would increase General Revenue Fund collections by roughly $0.3 million in the first full year of enactment. Additional administrative costs incurred by the Tax Department would be minimal.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov