FISCAL NOTE
Date Requested: February 22, 2016
Time Requested: 03:10 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1420 |
Introduced |
HB4661 |
|
|---|
| CBD Subject: |
Human Services, Juveniles |
|---|
|
FUND(S):
Aging Out of Foster Unit
Sources of Revenue:
Other Fund Aging Out of Foster Unit
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 create an Aging Out of Foster Unit within the Department of Health and Human Resources to assist children eighteen years of age or older who have been in the foster care system. The bill authorizes the Unit to track and collect statistics related to these children; provide assistance to them and to report annually to the Governor and Joint Committee on Government and Finance and the Legislative Oversight Committee on Health and Human Resources. The bill uses the “vapor product” definition from §16-9A-2 of this code and places a tax on “vapor products”, equal to the tax on tobacco products other than cigarettes to finance the Aging Out of Foster Unit.
The bill taxes “vapor products” equal to the tax on tobacco products other than cigarettes, which is seven percent of the wholesale price. The effective date of the bill is January 1, 2017. This is projected to provide just over $400,000 in FY2017 and nearly $1 million in each year thereafter for the new unit.
Administrative costs to the Tax Department will be $63,000 in FY2017 and $35,000 each year thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
63,000 |
35,000 |
| Personal Services |
0 |
35,000 |
35,000 |
| Current Expenses |
0 |
3,000 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
6,000 |
0 |
| Other |
0 |
19,000 |
0 |
| 2. Estimated Total Revenues |
0 |
400,000 |
1,000,000 |
Explanation of above estimates (including long-range effect):
The bill taxes “vapor products” equal to the tax on tobacco products other than cigarettes, which is seven percent of the wholesale price. The effective date of the bill is January 1, 2017. This is projected to provide just over $400,000 in FY2017 and nearly $1 million in each year thereafter for the new unit.
Administrative costs to the Tax Department will be $53,000 in FY2017 and $35,000 each year thereafter.
Memorandum
The stated purpose of this bill is to create an Aging Out of Foster Unit within the Department of Health and Human Resources to assist children eighteen years of age or older who have been in the foster care system. The bill authorizes the Unit to track and collect statistics related to these children; provide assistance to them and to report annually to the Governor and Joint Committee on Government and Finance and the Legislative Oversight Committee on Health and Human Resources. The bill uses the “vapor product” definition from §16-9A-2 of this code and places a tax on “vapor products”, equal to the tax on tobacco products other than cigarettes to finance the Aging Out of Foster Unit.
The definition of “vapor product” depends on the product having nicotine. The definition and the levy of the tax also do not specify whether it is the entire e-cigarette or whether the container of liquid is taxed separately.
The new unit created is financed by the tax equal to the tax imposed on tobacco products other than cigarettes. This is not stated in article 17, chapter 11, and may prove problematic with future rate changes.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov