FISCAL NOTE

Date Requested: March 12, 2021
Time Requested: 11:24 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2590 Introduced HB3100
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

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 from the consumers sales tax the purchase of plastic pewter models used in hobbies such as tabletop strategy or role-playing gaming and to designate this amendment as “Jesse’s Law”. The revenue impact of this proposal cannot be determined. We have no data on the quantity, type (plastic or pewter) or value of sales of “plastic and pewter models used in hobbies such as tabletop strategy or roleplaying gaming”. Due to the lack of concise parameters and definitions related to the proposed sales tax exemption, the cost could be of some significance. Additional administrative costs to the General Revenue Fund are $5,000 in FY2021.



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 5,000 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 5,000 0 0
2. Estimated Total Revenues 0 0 0


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


The revenue impact of this proposal cannot be determined. There is no data on the quantity, type (plastic or pewter) or value of sales of “plastic and pewter models used in hobbies such as tabletop strategy or roleplaying gaming”. Tabletop models range in size, from 2mm to over 2 feet and in prices from below $1 to in the hundreds. Due to the lack of concise parameters and definitions related to the proposed sales tax exemption, the cost could be of some significance. Additional administrative costs to the General Revenue Fund are $5,000 in FY2021 for a form language update.



Memorandum


The stated purpose of this bill is to exempt from the consumers sales tax the purchase of plastic and pewter models used in hobbies such as tabletop strategy or role-playing gaming and to designate this amendment as “Jesse’s Law”. The definition or description is ambiguous. Some role-playing games are electronic but have other, more expensive elements to them. A purchase of an elaborate and expensive model airplane to scale could be for a role-playing game amongst children or adults. The administration of this exemption is not clear or easy. The bill creates an exemption which is a slippery slope or Pandora’s box. There is no internal effective date. This subdivision would be effective 90 days after passage.



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