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 exempt from the consumers sales and service tax drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service.
    
    We are unable to fully quantify the revenue impact from the exemption for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service. However, according to our interpretation, the loss to the General Revenue Fund could be significant.
    
    The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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 0 0


Explanation of above estimates (including long-range effect):


    This bill provides an exemption from the consumers sales and service tax for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service.
    We are unable to fully quantify the revenue impact from the exemption for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service. However, according to our interpretation, the loss to the General Revenue Fund could be significant.
    
    The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion.
    



Memorandum


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