Date Requested:March 07, 2005
Time Requested:01:17 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1371 Intro SB471
CBD Subject: Sales Tax Exemption for Home Owners Asso
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 exempt from consumers sales and service tax payments of homeowners association dues, fees and assessments by homeowners association members to the homeowners association.
    
    According to our interpretation and based upon available data, passage of this bill would result in a reduction in the General Revenue Fund of less than $250,000 per year beginning with FY 2006.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.

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 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 -250,000 -250,000
3. Explanation of above estimates (including long-range effect):
    This bill provides that all dues, fees and assessments paid by members of a homeowners association be exempt from consumers sales and service tax . Passage of this bill would result in a reduction in the General Revenue Fund of less than $250,000 per year beginning with FY 2006.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.


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