FISCAL NOTE
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 clarify that payment for certain services performed as an incentive to sell a greater volume of such tangible personal property under a manufacturer’s, distributor’s, or other third-party’s marketing support program, sales incentive program, cooperative advertising agreement or similar type of program or agreement are not considered to be included as taxable services.
As written, this bill removes from the definition of “taxable services” payments made pursuant to marketing incentive programs. The estimated loss to the General Revenue Fund for this exemption would be at least $2 million annually.
Additional administrative costs to the Tax Department would be $4,000 during the current fiscal year due to notifying taxpayers of the change.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2003
Increase/Decrease
(use"-") |
2004
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
4,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
4,000 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-2,000,000 |
-2,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill removes from the definition of “taxable services” payments made pursuant to marketing incentive programs. The estimated loss to the General Revenue Fund for this exemption would be at least $2 million annually.
Additional administrative costs to the Tax Department would be $4,000 during the current fiscal year due to notifying taxpayers of the change.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us