FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:52 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1753 |
Introduced |
HB2360 |
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|---|
| CBD Subject: |
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FUND(S):
Ryan Brown Addiction Prevention and Recovery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New 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 impose and collect a tax on opioid drugs or substances in order to fund substance addiction prevention and treatment.
This bill would impose an excise tax of ten cents on each pill purchased by or for any licensed pharmacy in West Virginia for all opioid substances and their derivatives and substances included as Schedule II drugs under W. Va Code §60A-2-206. The tax is imposed on the pharmaceutical manufacturer or distributor, and the pharmacies are to collect and remit the tax to the Tax Commissioner. The revenue collected from this bill would be deposited to the Ryan Brown Addiction Prevention and Recovery Fund. Absent an effective date in this bill, this imposed tax would go into effect 90 days from its passage. The total revenue increase from the ten-cent tax per dosage would be roughly $7.4 million in the first full year of enactment.
Additional administrative costs to the State Tax Department would be $71,500 in FY2024 and $40,000 in subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
76,500 |
40,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,500 |
0 |
| Other |
0 |
35,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
7,400,000 |
Explanation of above estimates (including long-range effect):
This bill would impose an excise tax of ten cents on each pill purchased by or for any licensed pharmacy in West Virginia for all opioid substances and their derivatives and substances included as Schedule II drugs under W. Va Code §60A-2-206. The tax is imposed on the pharmaceutical manufacturer or distributor, and the pharmacies are to collect and remit the tax to the Tax Commissioner. The revenue collected from this bill would be deposited to the Ryan Brown Addiction Prevention and Recovery Fund. Absent an effective date in this bill, this imposed tax would go into effect 90 days from its passage. The total revenue increase from the ten-cent tax per dosage would be roughly $7.4 million in the first full year of enactment.
Additional administrative costs to the State Tax Department would be $71,500 in FY2024 and $40,000 in subsequent years.
Memorandum
The stated purpose of this bill is to impose and collect a tax on opioid drugs or substances in order to fund substance addiction prevention and treatment.
Effectiveness of this bill will be partially dependent upon the clarity as to what drugs are to be taxed. The context of the bill points to the taxation of a wide range of drugs. “Opioid” is not defined in any of the statutes referenced in the bill. There is no cross-reference to the definition of “opioid” elsewhere in the code.
There is no internal effective date of the article. If the article is effective 90 days after passage, then the administrative burden will be great to have the tax administration unit ready and the applications for certification, the forms, and instructions to be created.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov