Date Requested:March 16, 2005
Time Requested:11:37 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1712 Intro HB3060
CBD Subject: Removal of 6% Physicians Sales Tax
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 eliminate the sale of prescription drugs in a physician’s office or clinic from the six percent sales tax.
    
    We are unable to fully quantify the revenue impact from exempting the sale of drugs to be administered in a physician’s office or clinic. 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
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 0 0
3. Explanation of above estimates (including long-range effect):
    This bill provides an exemption from the consumers sales and service tax for sales of any prescription drugs administered in a physician’s office or clinic.
    
    We are unable to fully quantify the revenue impact from exempting the sale of drugs to be administered in a physician’s office or clinic. 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