Date Requested:February 17, 2005
Time Requested:02:49 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R377 Intro HB2313
CBD Subject: Excise Tax on Obscene Materials
FUND(S)
General Revenue Fund
Sources of Revenue
General 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 produce revenue by imposition of a tax upon the sale or rental of obscene materials.
    
    As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
    
    Additional administrative costs to the Tax Department would be $20,000 during the current fiscal year due to notifying taxpayers of the new tax and obtaining additional computers and office equipment. Thereafter, additional administrative costs would be about $21,000 per year due to the hiring of a new employee to administer this new tax.

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 20,000 20,760 20,760
Personal Services 0 20,760 20,760
Current Expenses 4,000 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 16,000 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
    
    Additional administrative costs to the Tax Department would be $20,000 during the current fiscal year due to notifying taxpayers of the new tax and obtaining additional computers and office equipment. Thereafter, additional administrative costs would be about $20,760 per year due to the hiring of a new employee to administer this new tax.


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