Date Requested:February 16, 2005
Time Requested:01:18 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R580 Intro HB2330
CBD Subject: Recyclable Containers Required
FUND(S)
Bottle Deposit Fund
Sources of Revenue
Other Fund Bottle Deposit Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to require the use of returnable containers for soft-drinks, soda water, carbonated natural or mineral water, other nonalcoholic carbonated drinks and for beer, ale or other malt drinks of any alcoholic content and for certain other beverage containers; to require the use of unredeemed bottle deposits; prescribe the powers and duties of certain state agencies and officials; and to prescribe penalties and remedies.
    
    As written, most of the responsibilities of the bill are placed upon the State Treasurer’s Office. However, the bill requires “dealers” to collect and remit bottle deposits to the Tax Division. These collections are to be deposited into the Bottle Deposit Fund and may not be reverted into the General Revenue Fund.
    
    Due to the lack of available data, we are unable to accurately estimate the amount of unredeemed bottle deposits that would be deposited into the Bottle Deposit Fund. This amount would depend on the State’s redemption rate (i.e., the higher the rate of redemption, the lower the amount of unredeemed deposits that would belong to the State).
    
    Additional administrative costs to the Tax Department would be approximately $41,000 next fiscal year for an additional tax audit clerk, personal computer, notification to taxpayers and data processing costs. Thereafter, additional administrative costs would be about $21,000 per year.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 40,760 20,760
Personal Services 0 20,760 20,760
Current Expenses 0 4,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 16,000 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    As written, most of the responsibilities of the bill are placed upon the State Treasurer’s Office. However, the bill requires “dealers” to collect and remit bottle deposits to the Tax Division. These collections are to be deposited into the Bottle Deposit Fund and may not be reverted into the General Revenue Fund.
    
    Due to the lack of available data, we are unable to accurately estimate the amount of unredeemed bottle deposits that would be deposited into the Bottle Deposit Fund. This amount would depend on the State’s redemption rate (i.e., the higher the rate of redemption, the lower the amount of unredeemed deposits that would belong to the State).
    
    Additional administrative costs to the Tax Department would be approximately $40,760 next fiscal year for an additional tax audit clerk, personal computer, notification to taxpayers and data processing costs. Thereafter, additional administrative costs would be $20,760 per year.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us