Date Requested:March 03, 2005
Time Requested:01:15 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1370 Intro SB436
CBD Subject: Telecommication Brokers Tax Exemption
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 sales tax commissions paid to telecommunications brokers for the provision of telecommunications brokers services.
    
     The service of telecommunications brokers appears to be a relatively new service. Therefore, any revenue loss to the General Revenue Fund from the passage of this bill would be minimal.
    
     Additional administrative costs to the Tax Department would be $4,000 in FY2006 due to notifying taxpayers of the exemption. Thereafter, there would be no additional administrative costs.

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 4,000 0
Personal Services 0 0 0
Current Expenses 0 4,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The service of telecommunications brokers appears to be a relatively new service. Therefore, any revenue loss to the General Revenue Fund from the passage of this bill would be minimal.
    
    Additional administrative costs to the Tax Department would be $4,000 in FY2006 due to notifying taxpayers of the exemption. Thereafter, there would be no additional administrative costs.


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