FISCAL NOTE
Date Requested: February 01, 2019
Time Requested: 12:27 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2928 |
Introduced |
SB502 |
|
|---|
| 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 exempt sales of investment metal bullion and investment coins from the sales tax.
According to our interpretation, passage of this bill would exempt sales of investment metal bullion and investment coins from the Consumer and Service Tax. The estimated loss to the General Revenue Fund is between $50,000 and $100,000 a year.
Additional administrative costs to the State Tax Department would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,000 |
1,000 |
| Personal Services |
0 |
1,000 |
1,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would exempt sales of investment metal bullion and investment coins from the Consumer and Service Tax. The estimated loss to the General Revenue Fund is between $50,000 and $100,000 a year.
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
The stated purpose of this bill is exempt sales of investment metal bullion and investment coins from the sales tax
The language of the exclusion is somewhat vague, particularly the phrase “specific and customary industrial, professional, aesthetic, or artistic uses.” The bill does not clarify what these “specific and customary … uses” might be.
The exemption, as stated in the bill, exempts the sales of investment metal bullion and investment coins, as defined, “ from the taxes imposed by this article, “ i.e., Article 15 of Chapter 11 of the Code. An argument could be made that such sales by an out-of-state vendor would still be subject to the Use Tax, which is imposed by a separate Article, Article 15A, of Chapter 11 of the Code.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov