FISCAL NOTE
Date Requested: February 19, 2015 Time Requested: 03:33 PM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3161 |
Introduced |
SB534 |
|
CBD Subject: |
Tax |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to increase the tax on a pack of twenty cigarettes by $1.
According to our interpretation, the bill will increase revenue by $126.6 million beginning in FY2016. Cigarette Tax revenue will increase by $128.4 million, and sales tax revenue will decrease by $1.8 million due to changes in consumer behavior reducing cigarette consumption because of the tax increase. The provisions of this bill also attempt to remove the requirement that revenue be deposited in the State General Revenue Fund. Removal of Cigarette and Tobacco Products Tax collections from the General Revenue Fund would reduce General Revenue Fund collections by $104.1 million, the amount deposited under current law.
Administrative costs to the Tax Department will be $60,000 in the current fiscal year.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
60,000 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
60,000 |
0 |
0 |
2. Estimated Total Revenues |
0 |
126,700,000 |
126,700,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill will increase revenue by $126.6 million beginning in FY2016. Cigarette Tax revenue will increase by $128.4 million, and sales tax revenue will decrease by $1.8 million due to changes in consumer behavior reducing cigarette consumption because of the tax increase. The provisions of this bill also attempt to remove the requirement that revenue be deposited in the State General Revenue Fund. Removal of Cigarette and Tobacco Products Tax collections from the General Revenue Fund would reduce General Revenue Fund collections by $104.1 million, the amount deposited under current law.
Administrative costs to the Tax Department will be $60,000 in the current fiscal year.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov